OTTAWA, Ontario--(BUSINESS WIRE)--Avivagen Inc. (TSXV.VIV) (“Avivagen” or the “Company”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhances feed intake and supports immune function, thereby supporting general health and performance, today announces several corporate updates, relating to the allowances of patents, a waiver of an interest payment on its senior secured debentures and the continuation of the strategic review process.
Intellectual Property (Patents)
The Corporation has been provided notices of allowance for patents in Brazil, Canada and Malaysia, further strengthening Avivagen’s ownership and use of its OxC-beta™ Livestock product until 2035 on an exclusive basis. The patents relate specifically to the Corporation owning oxidized carotenoids and components thereof for preventing necrotic enteritis.
Necrotic enteritis is a poultry disease caused by an overgrowth of Clostridium perfringens bacteria in the small intestine. The toxins produced by C. perfringens also damage the intestinal wall. In general, it occurs in broiler chickens of 2-6 weeks of age. In subclinical forms, it is characterized by impaired digestion affecting growth and overall performance. Clinical forms lead to severe problems and increased flock mortality in a very short time. Necrotic enteritis is a widespread problem in all poultry, particularly broilers, and is the cause of US$6 billion annual losses in global poultry production and the disease is on the rise.*
One reason for the rise of necrotic enteritis is the voluntary or legally required reduction of antibiotics in animal production.
Avivagen’s innovation that generated the patents that have now been allowed highlight the use of oxidized carotenoids and in particular fully oxidized β-carotene (“OxBC”) for preventing and/or reducing the risk of developing necrotic enteritis and ameliorating associated conditions, such as deleterious gastrointestinal conditions. The patent also relates to associated methods, uses, and kits.
Senior Secured Debentures (The “Debentures”)
Today the Corporation had a regularly scheduled interest payment on its issued and outstanding senior secured debentures. Pursuant to the terms of the Debentures, more than 50% of the holders of the Debentures provided a waiver in writing on this specific interest payment until the earlier of the next regularly scheduled interest payment in January 2024 or a change of control in the Corporation, in the event one occurs.
Since this announcement, the Special Committee has worked diligently to evaluate a variety of options. The Company is continuing to engage with multiple parties to pursue a potential transaction but is currently unable to provide any further guidance on the nature or timing of the proposed transaction. There can be no assurances that a transaction will be completed or that any successful transaction will result from the strategic process.
About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC- beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Mexico, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia.
Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions.
Statements set out in this news release relating to modifications to and execution of the Company's business plan, the review and availability of potential strategic opportunities for the Company, the abilities and anticipated success of the Strategic Committee, planned future communication , expectation as to further adoption of or orders for the Company’s products, the possibility that trials underway could lead to additional orders in the future and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as growth promoters are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, risks and uncertainties regarding strategic alternatives including the terms of their availability whether they will be available at all, and the effects of their implementation, the Strategic Committee may not have the results anticipated, unforeseen factors could limit the growth of the Company and the adoption of its products, customers are under no obligation to make additional orders and may not order increasing quantities of the Company’s products, partnerships may not be as successful as hoped, trials may not be successful or may not lead to additional adoption of the Company’s products, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics as growth promoters in livestock feeds, all of which could occur due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the T SX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.