Investigation of Vaxart, Inc.

Vaxart, Inc. (VXRT) Offers Spring-Loaded Stock Options to Insiders

In early 2020, Vaxart’s shares only traded around $0.35 when the Company began developing a COVID-19 vaccine. As time progressed, the Company continuously touted positive improvements in its COVID-19 vaccine development efforts. On June 8, 2020, Vaxart amended Armistice Capital LLP’s warrant agreements, which amounted to approximately 30% of the Company’s outstanding stock, allowing Armistice to exercise its warrants on approximately 21 million shares immediately.  Over the next week, Vaxart also issued millions of dollars in favorable stock options to its senior executives.  One June 25, Vaxart announced an agreement that would “enable the large scale manufacturing and ultimate supply of our COVID-19 vaccine for the US, Europe and other countries in need.” This news caused Vaxart’s stock to nearly double.  Then, on June 26, 2020, Vaxart announced that its coronavirus vaccine had been selected by the U.S. government for Operation Warp Speed, the federal initiative to quickly develop drugs to combat COVID-19, causing the stock to against increase.  Armistice exercised its 20.8 million warrants and sold 27.6 million shares between June 26 and 29, 2020, reducing its beneficial ownership in Vaxart from 29% to 0.2%, for approximately $200 million.  Then, on July 25, a New York Times article revealed Vaxart did not receive significant financial support from Operation Warp Speed and that its main founder profited by over $200 million through undisclosed stock options granted just prior to the announcement.  The stock dropped on this news and now trades at just under $7.00.

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