Valneva Launches Private Placement of Ordinary Shares Worth 60 Million Euros

Saint-Herblain, France - September 12, 2024 - Valneva SE (Nasdaq: VALN; Euronext Paris: VLA), a specialty vaccine company, has announced plans to issue approximately 22.6 million new ordinary shares, priced at €2.66 each, subject to market conditions. This issuance will be conducted through a private placement aimed at specific investor categories via an accelerated bookbuilding process starting immediately.

The funds raised will primarily support Valneva's ongoing clinical programs, including Phase 3 pediatric and Phase 4 programs for its chikungunya vaccine. Additionally, anticipated Phase 2 programs for Shigella and Zika vaccine candidates will benefit from the funds. Part of the proceeds will also aid in commercializing the existing chikungunya vaccine, IXCHIQ®, accelerating pre-clinical research and development activities, and covering general corporate purposes. Valneva anticipates that this funding will provide flexibility for future growth investments, particularly in its Shigella vaccine program, for which it recently secured an exclusive global license.

Valneva expects to have enough resources to finance its operations, excluding debt repayment, until potential milestone and commercial revenues from its Lyme disease program enable sustainable profitability. The VALOR Phase 3 trial for the Lyme disease vaccine is projected to conclude by the end of 2025, with Pfizer aiming to submit a Biologic License Application (BLA) to the FDA and a Marketing Authorization Application (MAA) to the European Medicine Agency in 2026, pending positive data.

As of June 2024, Valneva's debt stood at $200 million. The repayment of the first $100 million tranche will start in January 2026, maturing in the first quarter of 2027. The second tranche of $100 million will begin repayments in the first quarter of 2027, maturing in the fourth quarter of 2028.

The new shares will be issued without preferential subscription rights to a select number of institutional investors in the U.S. who qualify as institutional buyers and to non-U.S. investors relying on relevant regulations. These shares will be identical and fungible with Valneva's existing ordinary shares, carrying the same rights and being listed on Euronext Paris under the same ISIN: FR0004056851.

The bookbuilding process for the private placement will commence immediately and is expected to close before the opening of Euronext Paris on September 13, 2024. The final number of shares will be announced via a press release after the bookbuilding concludes. Settlement and delivery of the shares, along with their trading commencement on Euronext Paris, are expected to occur on September 17, 2024.

In connection with the private placement, Valneva and its management and Board members have agreed to a 90-day lock-up period post-settlement, subject to customary exceptions. Jefferies GmbH and Bryan, Garnier & Co are acting as Joint Global Coordinators and Joint Bookrunners for this process.

Valneva is a specialty vaccine company focused on developing, manufacturing, and commercializing prophylactic vaccines for infectious diseases with unmet medical needs. The company has a strong record of advancing multiple vaccines from early R&D to approval and currently markets three proprietary travel vaccines, including the world’s first and only chikungunya vaccine. Revenues from Valneva’s commercial activities support its vaccine pipeline, which includes advanced clinical candidates for Lyme disease, Shigella, and Zika virus, among other public health threats.