Replies to post #1920 on Novavax Inc (NVAX)

[BigBake1]

This is from the current prospectus.

Since the price per share of our common stock being offered is substantially higher than the net tangible book value per share of our common stock, you will suffer substantial dilution in the net tangible book value of the common stock you purchase in this offering. Based on the assumed public offering of 20,366,598 shares at the assumed price of $4.91 per share (the closing price on The NASDAQ Global Select Market on May 29, 2014), and without deducting underwriting discounts and commissions but after deducting estimated offering expenses payable by us, and based on a net tangible book value of our common stock of $0.56 per share as of March 31, 2014, after giving effect to this offering, if you purchase shares of common stock in this offering, you will suffer immediate and substantial dilution of $3.97 per share in the net tangible book value of common stock. The exercise of our outstanding stock options and vesting of our outstanding restricted stock units could result in further dilution of your investment. See the section entitled “Dilution” below for a more detailed illustration of the dilution you would incur if you participate in this offering.

So the closing price was based on a $4.91 share price minus a tangible book value based upon the last quarter filed and a deduction for top price this year, for a total reduction of .94 per share for $3.97, they rounded it to $4 per share.

So they aren't making out from anyone else and good point insiders paid more per share on the open market so everyone is in fact eating the costs of funding future trials.