YONKERS, N.Y., Jan. 9 /PRNewswire-FirstCall/ -- Advanced Viral Research
Corp. (OTC Bulletin Board: ADVR) today announced the completion of a
$836,000 private placement financing transaction. The proceeds from this
financing will be used for general corporate purposes, including the costs of
ongoing clinical studies of Product R in Israel that were initiated in
November 2002. The investors in the private placement were largely existing
shareholders of the Company.
During December 2002, ADVR entered into a Securities Purchase
Agreement with 17 investors pursuant to which the Company received gross
proceeds of $836,000 in exchange for the issuance and sale of 10,450,000
shares of its common stock, par value $.00001 per share, or $0.08 per share
and warrants to purchase an aggregate of 6,270,000 shares of the Company's
common stock, which are exercisable for five years from the date of issuance
at an exercise price of $0.12 per share. These warrants are not exercisable
prior to June 16, 2003.
The Company paid two finders an aggregate sum of $50,160 and issued two
finders warrants to purchase an aggregate of 627,000 shares of the Company's
common stock which are exercisable for five years from the date of issuance at
an exercise price of $0.12 per share. These warrants are not exercisable
prior to June 16, 2003. The investors in this financing have been granted
demand registration rights with respect to the securities in this financing.
"We welcome this investment at this time in the history of the development
of Product R," said Eli Wilner, Chairman of the Board. "In our funding
strategy for the Company we are committed to seeking quality investors who
share our commitment to the long-term development of Product R."
"We especially are gratified by the financial support of our existing
shareholders and the confidence they show in the future of ADVR," commented
Shalom Z. Hirschman, M.D., President and CEO.
Litigation
On December 17, 2002, ADVR announced that it had filed suit in the Circuit
Court of the 11th Judicial Circuit of Miami-Dade County, Florida charging that
certain investors "misrepresented their intentions in investing in the
Company" and "engaged in a series of manipulative activities to depress the
price of Advanced Viral stock," related to warrant repricing provisions of a
September 2002 financing agreement.
The Company announced today that two defendants in the Florida case, Alpha
Capital, A.G., located in Lichtenstein; and Bristol Investment Fund, LTD.,
whose principal place of business is in Grand Cayman, Cayman Islands, have
commenced separate lawsuits in the U.S. District Court for the Southern
District of New York seeking mandatory injunctive relief (issuance of stock)
and/or damages. The Company said it was evaluating both lawsuits and
reiterated that it will aggressively pursue all legal remedies on behalf of
the Company and its shareholders as well as defend lawsuits brought against
it.
ADVR's Product R represents a biopolymer chemistry that possesses novel
immunomodulator activity. This peptide-nucleic acid, which to date has shown
no indication of human toxicity, appears to stimulate the proinflammatory
responses required to combat viral infections such as AIDS and human papilloma
virus and to dampen aberrant autoimmune-type inflammatory responses, such as
occur in patients with rheumatoid arthritis. Therefore, Product R has been
termed a "switch-type" immunomodulator.
Advanced Viral Research Corp., based in Yonkers, New York, is a
biopharmaceutical firm dedicated to improving patients' lives by researching,
developing and bringing to market new and effective therapies for viral and
other diseases.
Note: This news release contains forward-looking statements that involve
risks associated with clinical development, regulatory approvals, including
application to the FDA, product commercialization and other risks described
from time to time in the SEC reports filed by the Company. Product R is not
approved by the U.S. Food and Drug Administration or any comparable agencies
of any other countries. There is no assurance that the Company will be able to
secure the financing necessary to continue and/or complete the clinical trials
of Product R or satisfy certain other conditions relating to clinical trials
including obtaining adequate insurance on terms acceptable to the Company.
The Company undertakes no obligation to update or revise the information
contained in this announcement whether as a result of new information, future
events or circumstances or otherwise.
CONTACT: Charles Mayr, +1-877-777-6010, mayrcomm@att.net,
for Advanced Viral Research
SOURCE Advanced Viral Research Corp.
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Related links:
http://www.adviral.com
CONTACT:
Charles Mayr, +1-877-777-6010,
mayrcomm@att.net, for Advanced Viral Research
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