Click here to close now.


News Feed Item

Vaccinogen Completes Initial Closing of an $80 Million Financing

Initial Closing is for $10 Million

FREDERICK, Md., Aug. 25, 2014 /PRNewswire/ -- Vaccinogen, Inc., (OTC.QB: VGEN) a cancer immunotherapy development company, announced today that it completed the initial closing of a private placement of $80 million of units and common stock.  Vaccinogen received gross proceeds of $10 million in this first closing.

Vaccinogen Logo

Vaccinogen is preparing to start ACTIVE, a confirmatory Phase IIIb pivotal study of the patient-specific vaccine in patients with resectable, Stage 2 colon cancer under a U.S. Food and Drug Administration (FDA) Special Protocol Assessment (SPA) classification. In a previous Phase III study, OncoVAX® reduced recurrence of cancer from approximately one in three to one in ten Stage 2 colon cancer patients[i].

A Stockholm-based investor group known as The Investment Syndicate ("TIS"), representing certain family offices and led by Swedish entrepreneur Anders Halldin, paid the initial $10 million in equity financing following Vaccinogen's satisfaction of certain closing conditions. The remaining $70 million will be delivered in four separate closings upon completion of certain milestones.

Vaccinogen also announced significant changes to its management team and Board of Directors.

Benjamin S. Carson, Sr., MD, a noted pediatric neurosurgeon and existing Vaccinogen Medical Advisory Board member, has been appointed to the Board of Directors and named Chairman of the Board. He is an Emeritus Professor of Neurosurgery, Oncology, Plastic Surgery and Pediatrics at the Johns Hopkins School of Medicine and serves on the board of directors of numerous organizations, including Kellogg's, and Costco.

"Cancer disguises itself well as non-threatening human tissue. OncoVAX pulls off that mask, exposes it as a threat and provides the immune system a roadmap to effectively destroy the cancer. Based on Phase III OncoVAX data published in The Lancet, I believe that Vaccinogen's unique tumor-cell vaccine approach to 'train' the body to attack its own cancer has the potential to significantly reduce recurrences and mortality in colon cancer and many other pervasive malignancies affecting the global population," said Dr. Carson.

Vaccinogen co-founder and President Andrew L. Tussing, has been appointed to the Board of Directors and named Chief Executive Officer (CEO) to replace Michael G. Hanna, Jr., Ph.D., inventor of OncoVAX and co-founder of Vaccinogen. Dr. Hanna has stepped down as CEO and as Chairman of the Board effective as of this initial closing. Dr. Hanna will continue to serve as a director and will now be Chairman Emeritus. Dr. Hanna will also remain on Vaccinogen's Medical Advisory Board and serve as special advisor to the CEO to assure his transfer of technical knowledge to new clinical and technical personnel to be hired for development of cancer therapeutic products.

Mr. Halldin has been appointed to the Board of Directors as the TIS representative under which he will also serve as Vice Chairman.  It is currently anticipated that Mr. Halldin will also serve as Chairman of the compensation, nominating and audit committees.

Alan Cohen, Daniel Fitzgerald and Daniel Kane have each resigned from Vaccinogen's Board of Directors effective with this initial closing.

"Vaccinogen thanks Mr. Cohen, Mr. Fitzgerald and Mr. Kane for their years of service on the Vaccinogen Board of Directors and wishes them all well in their other endeavors," Tussing said. "This new funding round represents a potentially transformative investment that if fully realized could support Vaccinogen through the final stages of development of OncoVAX, which, if approved by the FDA, we believe would be the first-ever patient-specific immunotherapy to prevent recurrence of colon cancer. Tussing continued, "we look forward to building on Dr. Hanna's discoveries and dedication that brought OncoVAX to this point and to working with leading cancer centers around the world to launch this important confirmatory Phase IIIb study in the coming months."

Since co-founding Vaccinogen in 2007, Mr. Tussing has overseen the financial and operational management of the company and co-led several initiatives including establishing and maintaining the Dutch cGMP manufacturing facility, leading Vaccinogen's capital raising efforts, including this financing and Vaccinogen's successful efforts to become a public company.

Financing Details

At this first closing, Vaccinogen issued units of common stock and warrants priced at $5.50 per unit consisting of 1,869,159 shares of common stock and warrants to purchase 545,454 shares of common stock at an exercise price of $6.05 per share. The remainder of the securities are issuable in a series of up to four additional closings following the achievement of additional milestones and will also be priced at $5.50 per unit or share of common stock, as applicable. The second closing of $10 million in units of common stock and warrants is expected by September 25, 2014 and is not subject to any milestones.  The last 3 closings for $60 million consist of common stock only.  TIS also has the option to invest an additional $30 million of Vaccinogen common stock under the same pricing terms as the $80 million financing until February 25, 2015, which, if exercised, would result in aggregate gross proceeds of $110 million in this financing.

For additional information on the TIS financing and related management and board reorganization, please refer to the Company's Current Reports on Form 8-K filed on April 28, 2014 and August 25, 2014 with the U.S. Securities and Exchange Commission at the Edgar web site at, which filings can also be found on Vaccinogen's web site at

About Vaccinogen, Inc.

Vaccinogen, Inc. is a cancer vaccine company that is clinically testing its OncoVAX® treatment which is designed to prevent the recurrence of colon cancer and potentially other solid tumors. It is a patented process that leverages a patient's own live tumor cells to launch a broad immune response against colon cancer. The Company believes that OncoVAX, at an optimum dose and regimen, is the first colon cancer vaccine to demonstrate effectiveness in both preventing cancer recurrence after surgical resection of the primary tumor and addressing the diversity of cancer cells. Five clinical studies of OncoVAX, including a Phase III trial with the optimum dose and regimen, have been completed to date. The Company expects to begin a pivotal Phase IIIb trial under an FDA Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA) within sixty (60) days of obtaining adequate funding.  More information is available at

Forward Looking Statement

Some of the statements contained in this document are forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Vaccinogen has based these forward-looking statements largely on its expectations and projections about future events and financial trends affecting the financial condition and/or operating results of our business. Forward-looking statements involve risks and uncertainties; particularly those risks and uncertainties inherent in the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics.  In addition, these forward-looking statements involve risks and uncertainties relating to the financing described herein, including, without limitation, the risk that the conditions to closing may not be met.  There are important factors that could cause actual results to be substantially different from the results expressed or implied by these forward-looking statements.  Vaccinogen does not undertake any obligation to update this forward-looking information.

Investor Contact:

David Carey

Lazar Partners Ltd.

212 867 1762

[email protected]

Media Contact:

Hollister Hovey

Lazar Partners Ltd.

212 867 1762

[email protected]

[i] Vermorken JB, Claessen AM, Van Tinteren H, et al. Active specific immunotherapy for stage II and stage III human colon cancer: a randomised trial. Lancet. 1999;353(9150):345-50.

Logo -

SOURCE Vaccinogen, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Saviynt Inc. has announced the availability of the next release of Saviynt for AWS. The comprehensive security and compliance solution provides a Command-and-Control center to gain visibility into risks in AWS, enforce real-time protection of critical workloads as well as data and automate access life-cycle governance. The solution enables AWS customers to meet their compliance mandates such as ITAR, SOX, PCI, etc. by including an extensive risk and controls library to detect known threats and b...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete en...
DevOps and Continuous Delivery software provider XebiaLabs has announced it has been selected to join the Amazon Web Services (AWS) DevOps Competency partner program. The program is designed to highlight software vendors like XebiaLabs who have demonstrated technical expertise and proven customer success in DevOps and specialized solution areas like Continuous Delivery. DevOps Competency Partners provide solutions to, or have deep experience working with AWS users and other businesses to help t...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
The APN DevOps Competency highlights APN Partners who demonstrate deep capabilities delivering continuous integration, continuous delivery, and configuration management. They help customers transform their business to be more efficient and agile by leveraging the AWS platform and DevOps principles.
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated a...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.