Virax Biolabs (VRAX) Shares Decline in After-Hours Trading After 75% Surge
Stock Performance: Virax Biolabs Group Ltd (NASDAQ: VRAX) shares fell 12.79% to $0.60 in after-hours trading, despite closing at $0.69, a 75.11% increase for the day. The stock has declined 68.87% year-to-date.
Private Placement Announcement: The company announced a private placement of 12.5 million ordinary shares at $0.40 each, expected to raise $5 million before fees, with H.C. Wainwright & Co. as the exclusive placement agent.
Warrant Modifications: The offering includes preferred investment options priced at $0.40 per share, with modifications to existing Series A and B options to match the new price and extend their expiration to five years.
Use of Proceeds: Virax plans to use the net proceeds from the private placement for working capital and general corporate purposes, with the transaction expected to close soon, subject to customary conditions.
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Virax Biolabs Closes $5 Million Private Placement to Extend Cash Runway
- Successful Financing: Virax Biolabs has successfully closed a $5 million private placement, issuing 12.5 million ordinary shares and preferred investment options, reflecting market confidence in its immunology research.
- Clear Use of Funds: The proceeds from this financing will be used for general working capital, extending the company's cash runway into the first half of 2028, ensuring continued progress in its post-acute sequelae of COVID-19 studies.
- Registration Statement Commitment: Virax has committed to filing a registration statement with the SEC within 45 days to facilitate the resale of securities, enhancing investor confidence and liquidity.
- Adjustment of Preferred Investment Options: The company is reducing the exercise price of existing preferred investment options from $2.934 to $0.40, further lowering the entry barrier for investors and promoting future financing activities.

Virax Biolabs Secures $5 Million Funding to Extend Cash Runway into 2028
- Successful Financing: Virax Biolabs has successfully closed a $5 million private placement, issuing 12.5 million ordinary shares and preferred investment options, which is expected to extend its cash runway into the first half of 2028, ensuring continued operations in COVID-19 sequelae research.
- Research Advancement: The funding will support Virax in completing its US and UK studies on post-acute sequelae of COVID-19, with plans to submit applications to the FDA and MHRA, further driving innovation in immunology.
- Investor Confidence: The involvement of H.C. Wainwright & Co. as the exclusive placement agent indicates strong market confidence in Virax's future growth, with the successful financing enhancing the company's competitiveness in the biotechnology sector.
- Equity Structure Adjustment: Virax will also reduce the exercise price of existing preferred investment options from $2.934 to $0.40 and extend their term to five years, aiming to increase investor participation and optimize its capital structure.








