Press Release Source: Viragen, Inc.
Viragen Completes $5.5 Million Debt Financing
Tuesday July 1, 7:01 am ET
PLANTATION, Fla., July 1 /PRNewswire-FirstCall/ -- Viragen, Inc. (Amex: VRA - News) today announced that it has completed the sale of $5.55 million in secured convertible debentures to an investment group that includes current institutional stockholders. The Company 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.
After original issue discount, commissions and expenses, the Company received approximately $4.55 million in net proceeds. The debentures, issued under an original issue discount, bear interest at the rate of 10% per annum and have a maturity date of September 1, 2005. The debentures are convertible into shares of Viragen common stock at the option of the Company at a fixed price of $0.32 per share if the market price exceeds $0.42 per share. The debentures may be converted at any time, in whole or in part, at the option of the investors at $0.32 per share. The conversion price, which represents a 125% premium to the volume weighted average price of Viragen's common stock over a ten 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 enables Viragen to continue to move forward with its commercial and scientific initiatives which are aimed at building stockholder value. We have significantly cut our cash burn rate in order to direct monies raised to priority activities and our goal remains to further strengthen the Company's financial position as we strive to attract additional key funding and partnering opportunities. With adequate financing in place, we expect to report important milestone achievements which validate the exciting market potential of our innovative healthcare products."
"The quality of Viragen's team, its products and its world-class collaborative partners have compelled our group to remain committed to ensuring that the company is appropriately capitalized," stated investor spokesperson, Mr. Andrew Reckles, General Partner of Palisades Master Fund LP. "We are impressed by Viragen's immediate ability to offer Multiferon(TM) as a rescue therapy for the many patients that have failed previous interferon treatments for diseases such as hepatitis C and cancer. Looking forward, Viragen's Avian Transgenic Technology and anti-cancer targets represent significant market opportunities. Our confidence in Viragen's future is confirmed by our continued investment."
Gruß Biene
Viragen Completes $5.5 Million Debt Financing
Tuesday July 1, 7:01 am ET
PLANTATION, Fla., July 1 /PRNewswire-FirstCall/ -- Viragen, Inc. (Amex: VRA - News) today announced that it has completed the sale of $5.55 million in secured convertible debentures to an investment group that includes current institutional stockholders. The Company 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.
After original issue discount, commissions and expenses, the Company received approximately $4.55 million in net proceeds. The debentures, issued under an original issue discount, bear interest at the rate of 10% per annum and have a maturity date of September 1, 2005. The debentures are convertible into shares of Viragen common stock at the option of the Company at a fixed price of $0.32 per share if the market price exceeds $0.42 per share. The debentures may be converted at any time, in whole or in part, at the option of the investors at $0.32 per share. The conversion price, which represents a 125% premium to the volume weighted average price of Viragen's common stock over a ten 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 enables Viragen to continue to move forward with its commercial and scientific initiatives which are aimed at building stockholder value. We have significantly cut our cash burn rate in order to direct monies raised to priority activities and our goal remains to further strengthen the Company's financial position as we strive to attract additional key funding and partnering opportunities. With adequate financing in place, we expect to report important milestone achievements which validate the exciting market potential of our innovative healthcare products."
"The quality of Viragen's team, its products and its world-class collaborative partners have compelled our group to remain committed to ensuring that the company is appropriately capitalized," stated investor spokesperson, Mr. Andrew Reckles, General Partner of Palisades Master Fund LP. "We are impressed by Viragen's immediate ability to offer Multiferon(TM) as a rescue therapy for the many patients that have failed previous interferon treatments for diseases such as hepatitis C and cancer. Looking forward, Viragen's Avian Transgenic Technology and anti-cancer targets represent significant market opportunities. Our confidence in Viragen's future is confirmed by our continued investment."
Gruß Biene
B Ö R S E N F A N 
