WEST HAVEN, Conn.--(BUSINESS WIRE)--NanoViricides, Inc. (NYSE MKT:NNVC) (the "Company") reported today that it has raised approximately $7.48 Million dollars due to the exercise of certain old warrants (see below) by its existing warrant holders.
These old warrants were issued to long standing investors of the Company, many of who have been repeat investors, in certain private placements performed by the Company between 2005 and 2009.
“We now have nearly $45 Million cash in hand, after this warrant exercise. This strong cash position now enables us to purchase the new modern R&D Lab and cGMP Clinical Production facility in Shelton, CT, without affecting any of our developmental programs including FluCide™ and DengueCide™, or any of our R&D programs, including the newly restarted Ebola antiviral nanoviricide® program,” said Eugene Seymour, MD, MPH, CEO of the Company, adding, “We are grateful for the support of our long standing investors that continue to show strong faith in the Company.”
These old warrants were extended previously and were due to expire on August 15, 2014. The price of these old warrants was adjusted to $3.50 per share, and the number of the warrants was adjusted to 1 for each 3.5 previous warrants, concomitant with the Company’s “uniform reverse split” of its common stock, performed in September, 2013.
The Company had filed a registration statement on Form S-3, on July 17, 2014, registering an aggregate of 3,071,986 shares of its common stock that would be issuable in the event of full exercise of these old warrants previously issued by the Company in various private placement offerings between 2005 and September 2009, as described more fully in the Form S-3 (the “Old Warrants”).
The Company informed the warrant holders about the expiration date of the warrants and the Company’s intention to file a Registration Statement to register said warrants, and later informed them when the registration statement became effective on August 1, 2014. A substantial portion of the warrants were exercised by the warrant holders prior to the expiration date, amounting to approximately $7.48 Million. The old warrants not converted prior to August 15, 2014 have lapsed.
No investment brokers or agents were retained in this process, and no commissions or fees were paid other than the communication, administration and legal expenses as incurred by the Company. Details about the warrant conversion have been filed on a Form 8-K with the SEC on Friday, September 5, 2014.
NanoViricides, Inc. (www.nanoviricides.com) is a development stage company that is creating special purpose nanomaterials for viral 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, 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.