Viragen Announces $12 Million Financing Agreement
PLANTATION, Fla., April 1 /PRNewswire-FirstCall/ -- Viragen, Inc. (Amex: VRA) today announced a two-year funding agreement that can provide up to $12 million in working capital from its largest institutional investor. Terms of the deal, structured in the form of an equity line of credit, will be detailed in a registration statement to be filed with the Securities and Exchange Commission (SEC).
Viragen's management team recently announced a major restructuring plan designed to significantly decrease expenses, strengthen management, streamline operations and attract additional investments. As part of this plan, Viragen has obtained a $12 million equity line of credit from Palisades Master Fund LP, an institutional investment fund based in the British Virgin Islands. Palisades will provide capital in such amounts and at such times as Viragen may require and at Viragen's sole discretion. Securities associated with such transactions may not be sold prior to the time the registration statement is declared effective by the SEC.
"We believe this funding commitment will provide the capital necessary for us to continue to demonstrate key commercial and scientific milestones," stated Viragen's President and CEO, Mr. Robert Salisbury. "This agreement provides us with a viable financing option while we continue to seek additional investors and partnering opportunities."
"We are very strong supporters and believers in the Viragen story and their management team. With volatile world markets, war, and overall economic uncertainty, great small companies, especially in the biotechnology arena, have seen their stock price dramatically suffer," stated Mr. Andrew Reckles, Chairman of HPC Capital Management and General Partner of Palisades. "In evaluating such market opportunities, we have spent the last seven months getting to fully understand the enormous potential of Viragen's products including Avian Transgenic Technology, which may revolutionize the way life- saving drugs are manufactured, and Multiferon(TM), which is generating sales as a safe and effective natural interferon for the treatment of many diseases. The new initiatives that management is taking to significantly reduce its cash burn rate have convinced us to commit, irrevocably, to fund the company, while we assist the company to find additional strategic and long-term financing commitments." HPC Capital is based in Atlanta, Georgia.
About Viragen, Inc.
Viragen is a biotechnology company specializing in the research, development and commercialization of natural and recombinant protein-based drugs designed to treat a broad range of viral and malignant diseases. These protein-based drugs include human natural alpha interferon, monoclonal antibodies, peptide drugs and therapeutic vaccines. Viragen's strategy also includes the development of Avian Transgenic Technology for the large-scale, cost-effective manufacturing of its portfolio of protein-based drugs, as well as offering Contract Manufacturing for the entire biopharmaceutical industry.
Viragen is publicly traded on the American Stock Exchange (VRA). Viragen's majority owned subsidiary, Viragen International, Inc. (OTC Bulletin Board: VGNI), is publicly traded on the Over-The-Counter Bulletin Board (VGNI). Viragen's key partners and licensors include: Roslin Institute, Memorial Sloan-Kettering Cancer Center, National Institutes of Health, Cancer Research UK, University of Nottingham (U.K.), University of Miami, America's Blood Centers and the German Red Cross.
Viragen, Inc. Corporate Contacts:
Douglas Calder, Director of Communications (Media & Investor Contact)
Phone: (954) 233-8746; Fax: (954) 233-1414
E-mail: dcalder@viragen.com
The foregoing press release contains forward-looking statements that can be identified by such terminology such as "expects", "potential", "suggests", "may", "will", or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management's expectations regarding future research, development and/or commercial results could be affected by, among other things, uncertainties relating to clinical trials and product development; availability of future financing; unexpected regulatory delays or government regulation generally; the Company's ability to obtain or maintain patent and other proprietary intellectual property protection; and competition in general. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
SOURCE Viragen, Inc.
CO: Viragen, Inc.; Palisades Master Fund LP
ST: Florida
SU: FNC
prnewswire.com
04/01/2003 07:01 EST |
