Vaxart stated in an Oct. 14, Securities and Exchange Commission statement that it was being investigated by the SEC and federal prosecutors and that it was serving a summons in the Grand Jury in July. from the U.S. District Court for the Northern District of California.
In June, Wax species (VXRT) issued a press release saying “Vaxarts Covid-19 vaccine selected for US government operation Warp Speed.” The news helped drive Vaxart’s share price to nearly $ 17, up from approx. $ 3, and hedge fund Armistice Capital, which partially controlled Vaxart, sold shares at a profit of more than $ 200 million, according to its SEC filing.
A few weeks before the announcement, Vaxart announced changes to the warrants agreements, which allowed Armistice to sell almost all of their shares, which they did when the stock price soared.
In July, the U.S. Department of Health and Human Services (HHS) told the New York Times that it had not entered into a financing agreement or negotiations with Vaxart. Armistice and HHS did not respond to requests for comment.
Vaxart was not selected by Operation Warp Speed to receive research funding, but instead had limited involvement, HHS told the New York Times in July. Vaxart̵
7;s vaccine, an oral tablet, was only involved in preliminary studies of primates sponsored by Warp Speed.
In a statement to CNN Business Saturday, the company said: “The Vaxart non-human primate challenge study was organized and funded by Operation Warp Speed, as stated in the June 26, 2020 press release. The statements in that press release are accurate and any claim to the contrary is unfounded. . “
In its SEC filing in October, Vaxart wrote that it had provided documents required by the subpoena to demonstrate its role in Operation Warp Speed. “The company has voluntarily provided documents requested by the SEC and is cooperating with this informal investigation,” it said.
Vaxart and its board of directors have been sued several times by shareholders accusing the company of allegedly inflating Vaxart’s share price by giving a false presentation of its role in Operation Warp Speed. Vaxart dealt with these lawsuits in his submission, saying it is seeking to have two of the cases dismissed while another class action is still pending.
On October 14, Vaxart announced encouraging results from its study of hamsters receiving oral doses of its Covid-19 vaccine.
The share fell by 3.5% to approx. $ 6 pr. Friday night.