Viragen needs additional funds to operate beyond February 2007

By Lisa Kerner

Charlotte, N.C., Nov. 14 - Viragen, Inc. will require "substantial additional funding" to support its operations beyond February 2007, according to a 10-Q filing with the Securities and Exchange Commission.

While the company plans to seek additional capital through equity or debt financings, Viragen is limited by the terms of its convertible debt issued in June 2004 and September 2005 and by the requirement that it obtain a waiver from debtholders to issue additional debt.

Should Viragen fail to obtain needed funds by the end of February 2007, it could be forced to significantly curtail or suspend operations.

Viragen has experienced losses and a negative cash flow since its inception. The company's net loss for the three months ended Sept. 30 was approximately $3.8 million. It incurred losses in the fiscal years ended June 30, 2006, 2005 and 2004 of $18.2 million, $26.2 million and $18.2 million, respectively.

The commercialization of Multiferon, additional research activities and clinical trials are expected to add to Viragen's losses, according to the filing.

Viragen is a pharmaceutical company based in Plantation, Fla.

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