Viragen Completes $5.5 Million Debt Financing
PLANTATION, Fla., July 1 /PRNewswire-FirstCall/ --
Viragen, Inc. (Amex: VRA) 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."
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 natural human 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 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.
SOURCE Viragen, Inc.
-0- 07/01/2003
/CONTACT: Douglas Calder, Director of Communications of Viragen,
+1-954-233-8746, or fax, +1-954-233-1414, dcalder@viragen.com/
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