Valneva Announces the Success of its Private Placement Raising approximately €60 Million

Saint-Herblain (France), September 13, 2024 – Valneva SE (NASDAQ:VALN, PARIS:VLA) ("Valneva" or the "Company"), a specialty vaccine company, today announces the successful pricing of its Private Placement (as defined below) for a final amount of €61,180,000. Peter Bühler, Valneva's Chief Financial Officer, commented, "We would like to thank our existing shareholders for their continued support, as well as the new healthcare specialist investors joining us through this raise. In addition to supporting our current commercial and R&D activities, this additional capital will give us greater flexibility to invest in our future growth, including in the Shigella vaccine program for which we recently acquired an exclusive worldwide license". Context of the Offering The Issuer intends to use the net proceeds of the Private Placement primarily to fund the continuing development of the Company's clinical programs which include notably the Phase 3 pediatric and Phase 4 programs for the chikungunya vaccine as well as the anticipated Phase 2 programs for the Shigella and Zika vaccine candidates. A portion of the net proceeds will also be used for the further commercialization of the Company's existing chikungunya vaccine, IXCHIQ®, to fund the acceleration of the Company's pre-clinical research and development activities and for general corporate purposes. Valneva believes this new funding will provide greater flexibility to invest in its future growth, including in its Shigella vaccine program for which it recently obtained an exclusive worldwide license. The Company believes it will have sufficient resources to finance its operational business, excluding debt repayment, until potential milestone and commercial revenues from its program against the Lyme disease enable the Company to operate in a sustained profitable way. Conclusion of the Lyme disease VALOR Phase trial 3 is still expected by the end of 2025, with the aim for Pfizer to submit a Biologic License Application (BLA) to the Food and Drug Administration and a Marketing Authorization Application (MAA) to the European Medicine Agency in 2026, subject to positive data. At the end of June 2024, the Company's debt amounted to $200 million. Reimbursements of the first $100 million tranche will start in January 2026 and mature in the first quarter of 2027. Reimbursements of the second $100 million tranche will start in the first quarter of 2027 and mature in the fourth quarter of 2028. Terms of the Private Placement A total of 23,000,000 new ordinary shares (the "Offer Shares"), each with a nominal value of €0.15, have been issued at a price of €2.66 each, without shareholders' preferential subscription rights, (i) to a limited number of institutional investors within the United States, or that are U.S. persons (as defined in Regulation S ("Regulation S") of the Securities Act of 1933, as amended (the "Securities Act")) who have represented that they are qualified institutional buyers (as defined in Rule 144A under the Securities Act) in an offering exempt from registration under Section 4(a)(2) of the Securities Act, and (ii) outside of the United States to non-U.S. persons in an offering exempt from registration under Regulation S, in the European Union (including France) to qualified investors within the meaning of Article 2(e) of Regulation 2017/1129 of the European Parliament and of the Council of 14 June 2017, as amended (the "Prospectus Regulation") and outside of the European Union (with the exception of the United States, Australia and Japan), in each case for the benefit of categories of investors defined by the 33rd resolution of the Company's combined ordinary and extraordinary general shareholders' meeting of 26 June 2024 ("General Meeting") (the "Private Placement"). Dilution The Offer Shares represent 16.5% of the Company's share capital on a non-diluted basis prior to the completion of the Private Placement and 14.2% of the Company's share capital on a non-diluted basis following the Private Placement. By way of illustration a shareholder holding 1% of the share capital of the Company prior to the launch of the Private Placement will now hold an interest of 0.86%. Breakdown of the share capital before the Private Placement Shareholder Shares % Capital Voting Rights % of Voting Rights Groupe CDC 13,539,703 9.72% 22,159,181 14.21% Pfizer Inc. 9,554,395 6.86% 9,549,761 6.13% Groupe Grimaud La Corbière 6,744,702 4.84% 12,949,533 8.31% Polar Capital 5,423,702 3.89% 5,423,702 3.48% Free Float   104,014,399 74.68%   105,812,191 67.87% Total   139,276,901 100.00% 155,894,368 100.00% Breakdown of the share capital after the Private Placement Shareholder