Novavax (NASDAQ: NVAX) announced on Monday that it plans to raise around $200 million through a private placement with RA Capital Management. An investment fund affiliated with RA Capital will purchase a quantity of Series A Convertible preferred stock from Novavax that is convertible into 4,388,852 shares of common stock. The biotech intends to use the additional capital to help fund its development of a COVID-19 vaccine candidate and to advance its U.S. regulatory filing for approval of flu vaccine NanoFlu. CEO Stanley C. Erck stated that Novavax believes that the RA Capital transaction "signals a high level of confidence in the significant progress of our COVID-19 and influenza vaccine programs." Image source: Getty Images. RA Capital Management Managing Partner Peter Kolchinsky supported Erck's take, and particularly noted that the investment "will support Novavax in its important work developing an effective, scalable vaccine for SARS-CoV-2." The private placement will bolster Novavax's cash position, which as of March 31 was $244.7 million, including cash, cash equivalents, marketable securities, and restricted cash. In May, the company announced that it will receive up to $384 million in additional funding from the Coalition for Epidemic Preparedness Innovations (CEPI) to develop and manufacture its COVID-19 vaccine candidate. Novavax has already used some of its cash to acquire Czech-based Praha Vaccines to boost its COVID-19 vaccine manufacturing capacity. 10 stocks we like better than NovavaxWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Novavax wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 2, 2020 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source