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Avivagen Announces Closing of Private Placement

Wednesday, 17 December 2014 07:00 AM

Avivagen Inc.

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Ottawa, ON / TNW-ACCESSWIRE / Dec 17, 2014 / Avivagen Inc. (TSXV: VIV, OTC Pink: CHEXF), a wellness company developing and delivering products that support and enhance the health and quality of life for animals and the people who care for them announces the closing of its previously disclosed non-brokered private placement.

This non-brokered private placement was first announced on November 27, 2014 and at that time was expected to involve the sale of units for gross proceeds of CDN$1.0 million. The final gross proceeds of CDN$1.5 million involved the sale of 25,000,000 units, each comprised of one common share and one-half of a common share purchase warrant, for a unit price of CDN$0.06. Each whole warrant will entitle the holder to acquire one common share of Avivagen at an additional purchase price of CDN$0.10 for three years from closing.

The private placement was partly taken up by two Officers of Avivagen (the CEO and CFO) and a Director of Avivagen, namely:

Mr. G.F. Kym Anthony, Independent Chairman and Director for CDN$100,000

Mr. Cameron Groome, CEO and President for CDN$30,000

Mr. Chris Boland, CFO for CDN$12,000

Avivagen paid finders' fees and issued finders' warrants in connection with the private placement in the aggregate amount of CDN$83,813.84 and the issuance of 1,269,396 finders' warrants, respectively. The finders' warrants will entitle the finders to acquire one common share of Avivagen at an additional purchase price of CDN$0.06 for two years from closing.

The net proceeds of the private placement will be used to fund working capital, product development and commercialization expenditures and for general corporate purposes.

The securities issued under this private placement are subject to restrictions on transfer, including a hold period ending four months after issuance.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended).

About Avivagen Inc.

Avivagen Inc. is a publicly-listed life sciences company trading on the TSX Venture Exchange under the ticker symbol "VIV" and OTC Pink under the ticker symbol "CHEXF." The Company's goal is to develop and deliver scientifically-proven solutions that can truly benefit companion and production animals by employing natural mechanisms for maintaining good health. Targeted markets include Livestock Productivity and Pet Wellness.

Avivagen is based in partnership facilities of the National Research Council of Canada (NRC) - in Ottawa, Ontario and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com.

About OxC-beta

Avivagen's proprietary and patent-protected technology is based on its discoveries concerning carotenoid antioxidants. The novel natural compounds discovered by Avivagen support the body's own systems to maintain and enhance health, by supporting immune function and calming excess inflammation. Avivagen's commercial-stage application of its technology is Fully-Oxidized beta-Carotene (OxC-beta). OxC-beta compounds occur naturally as carotenoid oxidation products in vegetation, but in minute amounts. They have been developed to support the health of companion animals and for use in the global food animal market.

Research results indicate OxC-beta supports innate immune function and can reduce late-stage inflammation, which can help maintain good health. In pets, OxC-beta supports overall vitality and energy, mobility and joint function, skin, coat and gut. Results observed in food animals have included healthier growth, better utilization of feed and decreased morbidity. In food animals, it is intended that use of OxC-beta avoids the feeding of antibiotics.

Avivagen's commercial products are OxC-beta for livestock, Vivamune(TM) Health Chews and Oximunol(TM) Chewables.

About OxC-beta for Livestock

OxC-beta for Livestock is available as a 10% pre-mix sold in 1.0 or 5.0 Kg quantities for parts-per-million addition to animal feeds, in accordance with Avivagen or producer-developed protocols. In past studies, OxC-beta has been shown to support health or growth in species such as chicken, pigs, cattle and fish. OxC-beta for livestock is currently available for commercial sale in the Kingdom of Thailand.

About Vivamune(TM) Health Chews - For dogs and cats

Vivamune(TM) Health Chews, containing Avivagen's proprietary active ingredients, are scientifically-formulated chews for dogs and cats. Vivamune(TM) Health Chews work with a pet's own immune system to maintain overall health and well-being. They are sold in re-sealable packages of 30 chews and are currently available in the United States by ordering on-line at www.vivamunehealth.com.

About Oximunol(TM) Chewables - For dogs

Oximunol(TM) Chewables are scientifically-formulated chewable tablets that contain Avivagen's proprietary, patented active ingredient OxC-beta. OxC-beta has been shown to stimulate innate cellular immunity and may thereby help to maintain overall health and well-being. Oximunol(TM) Chewables are distributed by Bayer Healthcare LLC and are available through veterinarians for dogs of all ages in the United States.

Permanent Non-Surgical Sterilization of Female Mammals

Avivagen has optioned worldwide exclusive rights to a technology for the permanent and non-surgical sterilization of female mammals. A proof-of-concept trial in an indicative species has been started in order to demonstrate whether the technology appears to be safe and effective. It is expected that a patent application covering World Trade Organization countries will be pursued and that technological details will be made available when that patent application is published. Further information will be disclosed as deemed prudent or as required.

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", "anticipated", "appear", "believe", "could", "estimated", "expected", "if", "intended", "goal", "hope", "likely", "may", "plan", "possibly", "potentially", "seem", "should", "whether", "will", "would" and similar expressions. Statements about the anticipated use of proceeds of the private placement, current or future potential uses of the technologies described in this news release, including their importance to animal or human health, their safety, efficacy or affordability, are all 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. Such risks and uncertainties include, but are not limited to, the following: the ability of Avivagen to continue as a going concern; the results of Avivagen's ongoing livestock trials may not be positive; the benefits from positive study results may not sufficient; even if the results of Avivagen's livestock trials are positive, there is no guarantee that Avivagen's products will be commercially viable and successful or that requisite regulatory approvals will be obtained; the timing and results of livestock trials may be delayed or may not be completed at all; and Avivagen's intellectual property rights may prove inadequate to protect its inventions. Accordingly, readers should not place undue reliance on forward-looking statements. 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 TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information:
Avivagen Inc.

Cameron Groome, CEO & President
100 Sussex Drive
Ottawa, Ontario
Canada K1A 0R6
Head Office Phone: 613-949-8164
Website: www.avivagen.com

Copyright(C) 2014 Avivagen

SOURCE: Avivagen Inc.

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