PLANTATION, Fla., June 14 /PRNewswire-FirstCall/ -- Viragen, Inc.
(Amex: VRA) today announced that its stockholders have approved the following
items: to complete the sale of $20 million in convertible promissory notes and
common stock purchase warrants to eight institutional investors; to effect a
reverse stock split; and to change the number of shares that Viragen is
authorized to issue. With necessary stockholder approval secured, the Board
of Directors intends to meet the final conditions of the financing agreement
including the authorization of a reverse stock split of the Company's common
shares at a ratio of 1-for-10, expected to take effect on June 15, 2004. This
funding, arranged by HPC Capital Management and expected to close in
approximately one week, will increase Viragen's cash position to approximately
$25 million, and is intended to be used to progress the research, development,
and commercialization of its healthcare products and technologies.
"By significantly strengthening our balance sheet, we are far better
positioned to move forward with global marketing initiatives designed to
increase revenues of Multiferon(TM), while supporting our research projects to
determine their commercial potential," stated Viragen's President and CEO, Mr.
Charles A. Rice. "With appropriate financing and an improved capital
structure in place, it is now up to us to deliver the business, scientific and
partnering milestones that will build and grow our Company and create value
for our stockholders."
In the reverse split, each 10 shares of Viragen's issued and outstanding
common stock will be automatically converted into one share of common stock.
No fractional shares will be issued in connection with the reverse stock
split. Instead, the Company will round up any fraction to the nearest whole
share. As a result, each stockholder whose shares of common stock are not
evenly divisible by ten (10) will receive one (1) additional share of common
stock for the fractional shares of common stock that such stockholder would
otherwise be entitled to receive as a result of the reverse stock split.
The reverse split will affect all shares of Viragen's common stock,
including those shares underlying stock options and warrants outstanding
immediately prior to the effective date of the reverse split.
As of June 15th, VRA will begin trading on a split-adjusted basis with its
same ticker symbol "VRA." Viragen's transfer agent, Mellon Investor Services,
will mail instructions to stockholders regarding the exchange of certificates
for common stock.
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 and a peptide drug. Viragen's strategy also includes the
development of Avian Transgenic Technology as a biomanufacturing platform for
the large-scale, cost-effective production of therapeutic proteins.
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, 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: 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 "expect," "potential,"
"suggests," "may," "will," "should," "could" 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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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Douglas Calder, Director of Communications,
Viragen, Inc., +1-954-233-8746, or fax, +1-954-233-1414, or
dcalder@viragen.com
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