Viragen plans $20 million follow-on sale

New York, March 13 - Viragen, Inc. said it plans to raise $20 million through a follow-on sale of common stock.

Dawson James Securities will underwrite the sale.

The transaction will be in additional to a $5 million private placement of units.

"We expect to complete this $5 million bridge round of financing this week, and we're working towards a planned secondary offering that should significantly increase stockholders' equity and provide working capital to fund our overall growth strategies, including key European marketing plans for Multiferon," commented Viragen's president and chief executive officer, Charles A. Rice, in a news release.

The private placement units were made up of one series J convertible preferred share and one warrant for 80 shares. The 24% preferreds are convertible into common shares at $1.25 each. The conversion price is a 101.6% premium to the company's closing stock price of $0.62 on March 10.

The warrants are exercisable at $1.25 each for five years.

Dawson James Securities was the placement agent.

Based in Plantation, Fla., Viragen develops treatments for viral diseases and cancers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.