Viragen Obtains Debt Financing
PLANTATION, Fla., April 30 /PRNewswire-FirstCall/ -- Viragen, Inc. today announced that it has raised $2.27 million in debt financing from a group of its current institutional stockholders and intends to use the proceeds to progress with its business plan to commercialize its portfolio of healthcare technologies including Multiferon(TM), Avian Transgenic Production Technology and Oncology Projects.
Viragen raised $2.27 million in gross proceeds from the sale of secured convertible debentures in a private placement with a group of its existing institutional stockholders. The debentures, issued under an original issue discount, bear interest at the rate of 10% per annum, are payable over 24 months and have a maturity date of August 1, 2005. The debentures are convertible into shares of Viragen common stock at the option of the Company at a fixed price of $0.20 per share if the market price exceeds $0.25 per share. The debentures may be converted at any time, in whole or in part, at the option of the investors at $0.20 per share. The conversion price, which represents a premium to the average price of Viragen's common stock over a several day period prior to the closing, is not subject to any price resets. The complete terms of the financing will be detailed in a registration statement to be filed with the Securities and Exchange Commission.
Viragen's Chairman, Mr. Carl Singer, stated, "This debt funding provides us with immediate working capital that we believe will be sufficient to fund our operations until we are able to access our equity line of credit following stockholder approval. With secured funding in place, the entire Viragen team remains committed to achieving our scientific and commercial goals as we deliver innovative healthcare technologies and strive to build stockholder value for our investors." Earlier this month, Viragen announced an agreement to access a $12 million equity line of credit.
"We remain very excited about the promise of Viragen's drugs and technologies," stated investor spokesperson, Mr. Andrew Reckles, General Partner of Palisades Master Fund LP. "With new opportunities opening up for the use of Multiferon and with the prospect of Avian Transgenic Technology fulfilling even just a fraction of its market potential, we believe that our investment in this company is attractively priced, even at a premium to the current market price."
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., 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.
For more information, please visit our Web site at: www.Viragen.com
Viragen, Inc. Corporate Contact:
Douglas Calder, Director of Communications
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.
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CONTACT: Douglas Calder, Director of Communications, Viragen, Inc.,
Phone: +1-954-233-8746, Fax: +1-954-233-1414 or E-mail: dcalder@viragen.com
Web site: viragen.com
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