Vaxxas raises $90m as CEO and chair step down
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The news: Needle-free vaccine delivery technology business Vaxxas has announced it has raised $90 million in debt and equity through a series D round, below its original target, and has cut its workforce by 10%.
Vaxxas also announced its founding CEO David Hoey is stepping down after 14 years but will remain with the company as a strategic adviser, although a replacement has not yet been found. Meanwhile, founding chair Paul Kelly retired and has been replaced by fellow OneVentures representative Sarah Meibusch.
The numbers: Vaxxas raised $49.22 million through a Series D funding round, although it was originally targeting a raise of $100 million.
An extra $40 million has been accessed through debt facilities with SPRIM Global Investments, the venture capital arm of life sciences consulting firm SPRIM.
The company has also cut 10% of its 150 person workforce, according to the Financial Review. This reportedly includes chief financial officer Doug Cubbin, with the position to be replaced with a financial controller.
The context: The equity financing was led by SPRIM Global Investments. Wealth management firm LGT Crestone was a new investor that participated in the rounds alongside existing investors OneVentures and Brandon Capital-Hostplus.
The funding will help Vaxxas to speed up development and scale-up its HD-MAP technology for commercial readiness. This includes funding later-stage clinical trials and installing semi-automated manufacturing lines.
What they said: Meibusch said the funding “underscores the confidence that leading investors have in Vaxxas’ disruptive technology and the progress the team has made toward scaling-up and commercialisation”.
“Coupled with our sharp focus on commercialisation, this funding provides Vaxxas with a runway into the second half of 2027 as we focus on bringing our technology to market,” Meibusch said.
The sources: Vaxxas media release, The Australian Financial Review
