Avitar Completes $750,000 Financing
July 10 2006 - 4:30PM
PR Newswire (US)
CANTON, Mass., July 10 /PRNewswire-FirstCall/ -- Avitar Inc.,
(OTC:AVTI) (BULLETIN BOARD: AVTI) has completed a financing with
accredited investors for the sale of $750,000 of Secured
Convertible Notes and 1.5 million seven-year warrants. The proceeds
will be used for the marketing and sale of the Company's
ORALscreen(R) product, the world's first non-invasive, rapid,
onsite oral fluid test for "drugs-of-abuse," as well as for general
corporate development. The Secured Convertible Notes, like the
Notes issued pursuant to the $3-million financing Avitar secured in
September 2005, will mature three years from the date of issuance
and bear interest at 8%. They are secured by the assets of the
Company. The Notes are convertible into shares of common stock of
Avitar, at the option of the investors, at 65% of the average of
the three lowest intraday trading prices of the common stock, as
quoted on the OTC Bulletin Board for the 20 trading days preceding
the date that the investors elect to convert. The Company has the
right to prepay the Notes under certain circumstances at premiums
ranging from 20% to 35%, depending on the timing of such
prepayment. The Company is required to file a registration
statement with the Securities and Exchange Commission within 30
days after receipt of demand from the investors. The exercise price
of the Warrants is $0.22 per share. This press release does not
constitute an offer to sell or the solicitation of an offer to buy
any of the securities mentioned in this release. This release is
being issued pursuant to and in accordance with Rule 135 under the
Securities Act of 1933, as amended (the "Act"). The securities
described in this release have not been registered under the Act or
any state securities laws, and may not be offered or sold in the
United States absent an effective registration statement covering
such securities or an applicable exemption from such registration
requirement. About Avitar, Inc. Avitar, Inc. develops, manufactures
and markets innovative and proprietary products. Their field
includes the oral fluid diagnostic market, the disease and clinical
testing market, and customized polyurethane applications used in
the wound dressing industry. Avitar manufactures ORALscreen(R), the
world's first non-invasive, rapid, onsite oral fluid test for
drugs-of-abuse, as well as HYDRASORB(R), an absorbent topical
dressing for moderate to heavy exudating wounds. Avitar is also
developing diagnostic strategies for disease and clinical testing
in the estimated $25 billion in-vitro diagnostics market.
Conditions targeted include influenza, diabetes, and pregnancy. For
more information, see Avitar's website at
http://www.avitarinc.com/. Forward-Looking Statements This release
contains forward looking statements that are subject to risks and
uncertainties including the development and marketing of new
applications and other risks that are detailed from time to time in
the Company's filings with the Securities and Exchange Commission.
In view of such risks and uncertainties, the Company's actual
results could differ materially from those anticipated in such
forward looking statements. Contact: Jay C. Leatherman Avitar Inc.
781-821-2440 http://www.avitarinc.com/ The Investor Relations Group
Investors: Erika Moran / Tom Caden, 212-825-3210 Media: Susan
Morgenbesser, 212-825-3210 DATASOURCE: Avitar, Inc. CONTACT: Jay C.
Leatherman of Avitar Inc., +1-781-821-2440, ; or Investors: Erika
Moran, , Tom Caden, , or Media: Susan Morgenbesser, , all of The
Investor Relations Group, +1-212-825-3210 Web site:
http://www.avitarinc.com/
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