Novavax (NASDAQ: NVAX), a biotechnology company, has recently announced in a press release that they have completed their share offering of Senior Convertible Notes equalling $175.25 Million due 2027 alongside additional $74.75 Million public stock offering. The company said that the net proceeds are anticipated to be around $166 Million. NVAX Stock went up by over 2%, currently trading at $9.06 at the publication time.
Novavax Sold Senior Convertible Notes to Trusted Parties
According to the release, the notes were offered and sold only to the trusted parties. Moreover the company offered breakdown of these offerings where the 5% Senior Convertible Notes accounted for $150 Million while the firm closed initial purchaser option to acquire up to an additional $25.25 million. They also completed the underwritten public offering of 7,475,000 common shares alongside an underwriters’ option to buy up to 975,000 additional shares.
NVAX Stock Price Analysis
Chart shows that the company shares have lost almost 90% value since July 2022. Regression trend indicates persisting sellers in the market while buyers still appear interested in the stock. Relative strength index points toward increasing interest, a positive indication for the price. The scenario is backed by the fact that the stock has already entered the oversold zone.
In July 2022, stock’s value reached a high of $77 followed by a sharp decline next week. Quarter 2 earnings report had a huge impact as the price opened at $40 from the previous day close of $57, an almost 30% loss in a day. Shares have since maintained a “smooth wave” which eventually led company shares into consolidation. Currently, anchored VWAP shows extremely difficult to reach resistance at $28.
Third quarter earnings show 25.3% surprise in revenue, generating $734.58 Million in contrast to an estimate of $586.25 Million. Earnings per share (EPS) shows a loss of $2.15 against the estimate of $1.57 positive EPS. On the brighter side, profit margin was increased during Q3 2022 to (26.84%) from (274.57%) in the previous quarter.
Earlier this month, Germany’s Standing Committee on Vaccination at Robert Koch Institute (STIKO) approved Nuvaxovid as covid booster for 18 years and older. The announcement came after vaccine’s trials in the US and Australia. The Food and Drug Administration (FDA) and Vaccines and Related Biological Products Advisory Committee (VRBPAC) reviewed NVX-CoV2373 against SARS-CoV-2 during May 2022.
Recent covid outbreak have caused a global panic, leading to speculations regarding lockdown in nations. According to CNBC, the US registered 100 Million covid cases in a week. BBC reported that entrants from China, Hong Kong and Macau require testing upon their entry in the country. Pandemic might be bad news for several companies but also a growth opportunity for organizations in the healthcare industry considering significant increase in awareness during the breakout.
Source: https://www.thecoinrepublic.com/2022/12/29/nvax-stock-close-to-breakdown-amid-covid-breakout/