PLANTATION, Fla., March 20 /PRNewswire-FirstCall/ -- Viragen, Inc.
(Amex: VRA; VRA.U; VRA.WS) today announced that the Company has entered
into an equity-for-debt restructuring agreement with seven institutional
investors who had previously held approximately $9.2 million in convertible
notes and debentures, as well as related warrants. By exchanging this debt,
related accrued interest and warrants for common shares, Viragen's
Stockholders' Equity now exceeds the $6 million minimum required for
continued listing on the American Stock Exchange (Amex). The Company
expects to file a Form 8-K with the Securities and Exchange Commission
containing a pro forma balance sheet, anticipating the filing will
demonstrate compliance with Amex's continued listing criteria.
The terms of this debt restructuring agreement permitted the holders of
the notes, debentures and related warrants to immediately exchange those
securities for common shares of Viragen. The exchange was effected at a
rate of one share of common stock for each $0.10 per share of outstanding
notes and debentures, resulting in the issuance of approximately 93 million
shares.
Viragen's President & CEO, Charles A. Rice, commented, "This
restructuring was a necessary step for two very important reasons. First,
we expect the restructuring to return us to compliance with the Amex's
listing rules, and we will continue to communicate our plans to Amex, as we
aim to maintain compliance through subsequent quarters. Second, we believe
the restructuring will enhance our ability to raise additional capital
under terms more favorable to the Company."
Viragen's listing status remains subject to review by Amex officials,
and while Viragen believes it has now achieved compliance with Amex listing
criteria, Amex has not yet issued a final decision, and Amex officials
could determine to delist Viragen's shares.
About Viragen, Inc.:
With international operations in the U.S., Scotland and Sweden, we are
a bio-pharmaceutical company engaged in the research, development,
manufacture and commercialization of therapeutic proteins for the treatment
of cancers and viral diseases. Our product and product candidate portfolio
includes: Multiferon(R) (multi-subtype, human alpha interferon) which is
uniquely positioned in valuable niche indications, such as high-risk
malignant melanoma, other niche cancer indications and selected infectious
diseases; VG101, a humanized monoclonal antibody that binds selectively to
an antigen over-expressed on Stage IV malignant melanoma tumors; and VG102,
a highly novel humanized monoclonal antibody that binds selectively to an
antigen that is over-expressed on nearly all solid tumors. We are also
pioneering the development of the OVA(TM) System (Avian Transgenics), with
the renowned Roslin Institute, the creators of "Dolly the Sheep", as a
revolutionary manufacturing platform for the large-scale, efficient and
economical production of human therapeutic proteins and antibodies, by
expressing these products in the egg whites of transgenic hens.
For more information, please visit: http://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 announcement contains forward-looking statements
that can be identified by such terminology such as "believes," "expects,"
"potential," "plans," "suggests," "may," "should," "could," "intends," 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 success of third- party marketing efforts; our ability to retain
third-party distributors; our 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.
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Related links:
http://www.viragen.com/
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CONTACT:
Douglas Calder, Director of Communications of
Viragen, Inc., +1-954-233-8746, Fax: +1-954-233-1414, E-mail:
dcalder@viragen.com
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