Viragen greenshoe partially exercised, raising unit sale to $18.7 million

New York, Nov. 3 - Viragen, Inc. said the underwriter of its recent sale of units exercised 5,004,951 units of the 10.05 million unit greenshoe, raising the deal to 72,004,951 units.

The additional securities increased the offering to $18.7 million from $17.42 million.

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. They were sold at $0.26 each.

Dawson James Securities, Inc. was the underwriter for the deal, which priced after the close on Oct. 30.

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.

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 the 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.

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