By Business Wire, February 27, 2013, 07:36:00 PM EDT
WEST HAVEN, Conn.--(BUSINESS WIRE)--
NanoViricides, Inc. (OTC BB:NNVC) (the "Company"), announced today that
it has retired the remainder of the Series C Convertible Preferred Stock
previously purchased by Seaside 88, LP ("Seaside"), with a cash payment.
This transaction was completed by a mutual agreement between Seaside and
the Company.
The Company continues to hold approximately $18M of cash plus prepaid
expenses in hand after this transaction. The Company believes that these
funds are sufficient for more than two years of operating expenses. The
Company also believes that the current cash position is sufficient for
advancing its anti-influenza drug candidate into initial human clinical
trials.
As previously reported, the Company recently sold $6M of its Series B
Convertible Debentures to three family investment offices and a
charitable foundation, all of whom have been long term investors in and
supporters of the Company. As such the Company has attained a strong
financial position. With this additional liquidity, the Company's Board
of Directors determined that retirement of the Convertible Preferred
Series C Stock was in the best interests of the Company's shareholders
and initiated a discussion of a possible redemption with Seaside. A part
of the funds obtained in the sale of the Series B Convertible Debentures
were utilized to retire the Series C shares.
"We have been very happy with the strong financial support that Seaside
has provided to the Company," said Anil R. Diwan, PhD, Chairman of the
Company, adding, "Seaside has invested a total of $25M into the Company
over the past few years. Their funding has allowed us to focus on drug
development without any fund-raising distractions. We have been able to
advance our influenza drug pipeline with the use of this financing.
Further, we have been able to obtain sufficient capital to fund our
upcoming studies through IND filing and initial human clinical trials."
Seaside had purchased the said Series C Preferred Convertible Stock and
the Company had received the final tranche of $2.5M from Seaside on
December 21, 2012, which completed the total of a $5M financing. This
raise, and the receipt of the initial $2.5M tranche, was previously
announced on June 29, 2012. According to this agreement, Seaside
converted a number of preferred Series C shares into common stock every
two weeks, based on a formula that employed the average dollar volume of
the Company's common stock traded in the previous two weeks, as
previously described.
On February 26, 2013, the Company entered into a letter agreement with
Seaside whereby the Company agreed to fully retire the remaining,
unconverted 1,825.744 shares of its Series C Convertible Preferred Stock
sold to Seaside on June 26, 2012. The total price paid by the Company
for the retirement of the Series C Preferred Stock was $2,014,921.41.
This amount included accrued preferred dividends of $6,002.45 and a 10%
redemption premium. The redemption and cancellation of the Series C
shares was completed by a mutual agreement between Seaside and the
Company and included the termination of the Securities Purchase
Agreement with Seaside 88, LP dated June 26, 2012 and the release from
all obligations of the Company and Seaside. Midtown Partners & Co., LLC,
acted as the intermediary in this agreement. No fees or commissions were
accrued or paid to any party.
About
NanoViricides:
NanoViricides,
Inc. (www.nanoviricides.com)
is a development stage company that is creating special purpose
nanomaterials for antiviral therapy. The Company's novel nanoviricide®
class of drug candidates are designed to specifically attack enveloped
virus particles and to dismantle them. The Company is developing drugs
against a number of viral diseases including H1N1 swine flu, H5N1 bird
flu, seasonal Influenza, HIV, oral and genital Herpes (HSV), viral
diseases of the eye including EKC and herpes keratitis, Hepatitis C,
Rabies, Dengue fever, and Ebola virus, among others.
This press release contains forward-looking statements that reflect the
Company's current expectation regarding future events. Actual events
could differ materially and substantially from those projected herein
and depend on a number of factors. Certain statements in this release,
and other written or oral statements made by NanoViricides, Inc. are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. You should not place undue reliance on forward-looking statements
since they involve known and unknown risks, uncertainties and other
factors which are, in some cases, beyond the Company's control and which
could, and likely will, materially affect actual results, levels of
activity, performance or achievements. The Company assumes no obligation
to publicly update or revise these forward-looking statements for any
reason, or to update the reasons actual results could differ materially
from those anticipated in these forward-looking statements, even if new
information becomes available in the future. Important factors that
could cause actual results to differ materially from the company's
expectations include, but are not limited to, those factors that are
disclosed under the heading "Risk Factors" and elsewhere in documents
filed by the company from time to time with the United States Securities
and Exchange Commission and other regulatory authorities. Although it is
not possible to predict or identify all such factors, they may include
the following: demonstration and proof of principle in pre-clinical
trials that a nanoviricide is safe and effective; successful development
of our product candidates; our ability to seek and obtain regulatory
approvals, including with respect to the indications we are seeking; the
successful commercialization of our product candidates; and market
acceptance of our products.
Source: NanoViricides, Inc.