SHELTON, Conn., Feb. 13, 2017 /PRNewswire/ -- NanoViricides, Inc.
(NYSE MKT: NNVC), a global leader in the development of highly
effective antiviral therapies based on a novel nanomedicines
platform (the "Company"), reports today that a substantial portion
of its Series B Convertible Debentures, with a maturity date of
January 31, 2017, have been converted
into restricted common stock, effectively retaining $5 million in cash for the Company.
The Company offered a conversion proposal to all holders of the
Series B Convertible Debentures, with a total principal value of
$6,000,000. An entity controlled by
Dr. Boniuk and the Boniuk Charitable Foundation accepted the
Company's offer to convert debentures in the aggregate principal
amount of $5,000,000. The remaining
Debentures in the amount of $1,000,000 principal, with accrued interest as of
the Maturity Date, will be repaid to the holders thereof in cash.
The Holders had the right to demand repayment of the principal
balance and interest in cash or convert to shares of Common Stock
at the conversion rate of $3.50 per
share, as per the original debenture agreement. Given the downward
effects in general on pre-revenue biopharma company stock prices in
the last couple of years, and in particular on NanoViricides stock
price, the Company's Board of Directors made a determination that
it should offer a conversion price consistent with the recent stock
price performance of NNVC stock. Director Dr. Milton Boniuk, a major debenture holder in
Series B debentures, abstained from the voting.
The conversion price for the principal amount was $1.1533 representing the volume weighted average
price of the Common Stock on the NYSE MKT from December 15, 2016 to January 30, 2017. This conversion price was a
small premium of the closing bid price of the Common Stock on the
Maturity Date of $1.1500.
"We have been able to add $5M to
our cash with this conversion," said Eugene
Seymour, MD, MPH, CEO of the Company, adding, "We have
obtained the best possible conversion deal for our shareholders,
with no discounts, and essentially at-market conversion into
restricted shares. At the same time, this conversion wipes out
$6M of our liabilities, and retains
$5M in cash, bolstering our capital
position significantly as we move the Company towards human
clinical trials."
No agents were retained and no commissions or fees were paid for
this conversion, other than usual attorneys' fees. This transaction
will appear as a subsequent event in the Company's quarterly report
for the period ending December 31,
2016.
About NanoViricides:
NanoViricides, Inc. (www.nanoviricides.com) is a development stage
company that is creating special purpose nanomaterials for
antiviral 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 VZV, oral and genital
Herpes, viral diseases of the eye including EKC and herpes
keratitis, H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV,
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nanoviricides-reports-the-companys-director-dr-boniuk-converted-series-b-debenture-to-equity-effectively-raising-5m-in-new-equity-for-the-company-300406048.html
SOURCE NanoViricides, Inc.