OTTAWA, ONTARIO, August 23, 2013 - Avivagen Inc. (TSXV:VIV), 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 that it intends to complete a private placement of units for gross proceeds of up to $1.5 million.
This private placement is expected to involve the sale of units, each comprised of one common share and one-half of a common share purchase warrant, for a unit price of $0.07. Each whole warrant will entitle the holder to acquire one common share of Avivagen at an additional purchase price of $0.12 for three years from closing. The proposed private placement is the result of inbound indications of investor interest and is expected to close within the next ten (10) business days.
Avivagen expects that it will pay finders' fees in connection with the private placement, the amounts of which will be disclosed in the news release issued upon the closing of the transaction. The net proceeds of the proposed offering will be used to fund working capital, product development and commercialization expenditures and for general corporate purposes.
The securities issued under this private placement will be subject to restrictions on transfer, including a hold period ending four months after issuance. The private placement remains subject to a number of conditions, including, but not limited to, the execution of subscription agreements with investors and TSX Venture Exchange approval. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
About Avivagen Inc.
Avivagen Inc. is a publicly-listed life sciences company trading on the TSX Venture Exchange under the ticker symbol "VIV". 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. Avivagen's targeted markets include Pet Wellness and Livestock Productivity.
The company has sites located in partnership facilities of the National Research Council of Canada (NRC) - in Ottawa, Ontario and Charlottetown, Prince Edward Island. More information can be found at www.avivagen.com.
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, particularly by supporting immune function. 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, 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 mortality. In food animals, it is intended that use of OxC-beta avoids the feeding of antibiotics.
The commercial products of Avivagen are Oximunol(TM) Chewables, OxC-beta for livestock and now Vivamune(TM) Health Chews.
About Vivamune(TM) Health Chews - "For dogs that dig life" and "For extraordinary 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 - "Optimized Health in a Chewable Tablet"
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.
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 producer-developed protocols. In past studies, OxC-beta has been shown to support health and growth in species such as fish, chicken, pigs and cattle. OxC-beta for livestock is currently available for commercial sale in the Kingdom of Thailand.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations, which 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 "will", "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions. Statements about Avivagen's intention to complete a private placement, the proposed terms of such private placement and the proposed use of proceeds of such private placement are all forward-looking statements. The forward-looking statements reflect the current expectations of Avivagen Inc. regarding future results or events and are based on discussions Avivagen and its representatives have had to date with potential investors. 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. There are a number of conditions to completing the proposed private placement which are outside the control of Avivagen and there can be no assurances that a private placement will be completed at all or in the amount indicated in this press release. 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:
CEO & President
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