Waxart is under federal investigation after misrepresenting its role in the government program Operation Tana Motion


Waxart said in an October 14 Securities and Exchange Commission filing that it was being investigated by the SEC and federal prosecutors, and that it was served in July with a grand jury subpoena. From the US District Court for the Northern District of California.
In June, Vaxart (VXRT) Issued a press release stating “Waxart’s Kovid-19 vaccine was chosen for the US government’s Operation Taunting Motion.” The news helped increase Waxart’s stock price by about $ 3, according to its SEC filing, to about $ 3, and hedge fund Armistice Capital, which partially controlled Waxart, raised more than $ 200 million. Sold the shares for profit.

A few weeks before the announcement, Waxert allowed an amendment to the warrant agreements, which allowed Armistice to sell almost all of its stock, which he did after the share price skyrocketed.

In July, the US Department of Health and Human Services (HHS) told the New York Times that it had not entered into a funding agreement or negotiations with Vaxart. Armistice and HHS did not respond to requests for comment.

Waxart has not been selected by Operation Tana Speed ​​to receive research funding, but instead had limited participation, HHS told the New York Times in July. Waxart’s vaccine, an oral tablet, was included in preliminary studies on primates sponsored only by taunting motion.

“The Waxart Non-Human Primate Challenge Study was conducted and funded by Operation Warp Speed,” the company said in a statement to CNN Business on Saturday, a June 26, 2020 company press release. Statements given in press releases. Any allegations that are accurate and to the contrary are baseless. ”

In its October SEC filing, Vaxart wrote that it provided documents called by the subpoena to demonstrate its role in Operation Tana Speed. It states that the company has voluntarily provided the documents requested by the SEC and is cooperating in this informal investigation.

Waxart and its board have been sued several times by shareholders who accuse the company of raising Waxart’s stock price by misrepresenting its role in Operation War Speed. Waxart addressed those lawsuits in its lawsuit, saying it sought to have the two cases dismissed, while another class action was still ongoing.

On October 14, Waxart announced encouraging results from its study on hamsters, which received oral doses of its Kovid-19 vaccine.

The stock was down 3.5% as of Friday evening, to around $ 6.

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