Temasek, Singapore’s state investor as well as a group of other investors will inject $250 million into BioNTech, (Nasdaq: BNTX) the Germany biotech company developing an MRNA-based COVID-19 vaccine with Pfizer. This latest investment is via private placement.
This investment includes an investment of $139 million in ordinary shares and a $112 million investment in 4-year mandatory notes. Ugur Sahin, CEO and Co-founder of BioNTech, reported, “We are pleased to welcome Temasek onboard as a new shareholder. We believe their long-term investment approach, global presence, and deep experience in the biotechnology field are a good fit with our vision to build a leading biopharmaceutical company.”
Private placement investors will receive 2.6 million shares in BioNTech subject to a 180-day lock up agreement. The 4-year mandatory convertible notes will include a coupon of 4.5% per annum and a conversion premium of 20% about the reference price. This investment should close in early to mid-August, subject to customary closing condition.
BioNTech just recently closed 100 million Euro financing with the European Investment Bank for COVID-19 vaccine development and manufacturing.
Growing Investor Interest in Vaccines
This latest quarter billion dollar infusion is just one of a number of ongoing deals involving vaccine ventures from Moderna and CureVac to CanSino Biologics and Novavax.
BioNTech Shares Increase
U.S. listed shares in this venture shot up 15% to the highest price since March 19th. Since the beginning of the year the stock price has increased by 80% as compared to the aggregate NASDAQ bump of 12%.