By Ronda Fears
Memphis, Oct. 31 - Viragen, Inc. raised $17.42 million from the sale of 67 million units at $0.26 each via underwriter Dawson James Securities, Inc. Each unit consists of one share of common stock and a warrant to purchase one share of common stock at a strike price of $0.31.
Viragen common shares (Amex: VRA) closed Monday at $0.32.
The units will trade on the American Stock Exchange under the ticker "VRA.U." The warrants will become exercisable on the date of separation from the unit, which will be April 30, 2007, or earlier if so determined by the underwriter, and will expire on Oct. 29, 2011.
In addition to the offering and greenshoe, Viragen said it also has agreed to sell to the underwriter, Dawson James, for $100, an option to buy up to 4.02 million units identical to those offered publicly except that the exercise price per unit is $0.29, and per warrant underlying such unit is $0.39.
Plantation, Fla.-based Viragen concentrates on cancers and viral diseases. Its product candidates are Multiferon for malignant melanoma, VG101 for malignant melanoma tumors and VG102 for solid tumors. The company also is developing the OVA System with the renowned Roslin Institute, creators of cloned sheep Dolly, 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.
Proceeds are earmarked to redeem preferred shares, to make interest payments on debt, for research and sales activities, for working capital and for general corporate purposes.
| Issuer: | Viragen, Inc.
|
| Issue: | Units of one common share and one warrant to purchase one common share
|
| Gross proceeds: | $17.42 million
|
| Net proceeds: | $16.37 million
|
| Units: | 67 million
|
| Greenshoe: | 10.05 million units
|
| Price: | $0.26 per unit
|
| Warrants: | One warrant per unit
|
| Warrant strike price: | $0.31
|
| Warrant expiration: | Oct. 29, 2011
|
| Bookrunner: | Dawson James Securities, Inc.
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 3
|
| Stock symbol: | Amex: VRA
|
| Stock price: | $0.32 on Oct. 30
|
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