Evaxion pursues agreement with EIB to bolster equity through conversion of debt into equity

Core Viewpoint - Evaxion Biotech A/S is in advanced discussions with the European Investment Bank (EIB) to convert €3.5 million of its €7 million loan into an equity-type instrument, which is expected to enhance its equity by $3.7 million and improve its capital structure, aiding compliance with Nasdaq listing requirements [1][2][3]. Group 1: Financial Impact - The conversion of €3.5 million is anticipated to increase Evaxion's equity by $3.7 million immediately upon completion [1][2]. - This conversion will significantly reduce the company's overall liabilities, as Evaxion has no debt besides the EIB loan, thereby simplifying its balance sheet and improving financial flexibility and cash flow [2][3]. Group 2: Strategic Importance - The agreement with EIB is a crucial part of Evaxion's strategy to ensure ongoing compliance with Nasdaq listing requirements [1][2]. - The favorable terms being discussed with EIB are expected to strengthen the company's equity and improve its standing in the financial community [3]. Group 3: Timeline and Background - The agreement is expected to be finalized and implemented in the first quarter of 2025 [1][4]. - Evaxion obtained the loan from EIB in 2020, indicating a long-term relationship with the bank [4].