PLANTATION, Fla., March 21 /PRNewswire-FirstCall/ -- Viragen, Inc.
(Amex: VRA) today announced the completion of a private placement Unit
offering to institutional and accredited investors providing gross proceeds of
approximately $5.2 million. After fees and expenses, the Company received
approximately $4.7 million in net proceeds. Dawson James Securities, a
healthcare & biotechnology investment banking firm, acted as the placement
agent.
Viragen intends to use the proceeds raised from this offering to continue
funding its drug research and development plans, regulatory strategies and
proceed with the international marketing of Multiferon(R) in its approved
territories, including Sweden where the drug was recently approved for the
first-line adjuvant treatment of malignant melanoma.
The $5,215,000 private placement offering involved 52,150 Units, priced at
$100 per Unit, with each Unit consisting of one share of Series J cumulative
convertible preferred stock and 80 warrants to purchase one share each of
common stock. The convertible preferred shares: have a dividend of 24% per
annum; are redeemable by either the investor or the Company under certain
conditions; and are convertible into Viragen common stock at $1.25 per share.
The warrants, which expire five years from the date of issuance, are
exercisable at $1.25 per share.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an
offer, solicitation or sale of any securities in any jurisdiction in which
such offering, solicitation or sale would be unlawful. The securities offered
in the private placement to the investors were not registered under the
Securities Act of 1933 as amended (the "Act"), and may not be offered or sold
in the United States absent registration, or an applicable exemption from
registration, under the Act. Complete terms of this private placement are
available in Form 8-Ks filed with the Securities and Exchange Commission on
March 13, 2006 and today.
About Viragen, Inc.:
With global operations in the U.S., Scotland and Sweden, Viragen is a
biotechnology company engaged in the research, development, manufacture and
commercialization of pharmaceutical proteins for the treatment of viral
diseases and cancers. Our product portfolio includes: Multiferon(R) (multi-
subtype, natural human alpha interferon) targeting a broad range of infectious
and malignant diseases; and humanized monoclonal antibodies targeting specific
antigens over-expressed on many types of cancers. We are also pioneering the
development of Avian Transgenic Technology, with the renowned Roslin
Institute, as a revolutionary manufacturing platform for the large-scale,
efficient and economical production of human therapeutic proteins and
antibodies.
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 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.
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Related links:
http://www.viragen.com
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CONTACT:
Douglas Calder, Director of Communications of
Viragen, +1-954-233-8746, or fax, +1-954-233-1414, or
dcalder@viragen.com
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