OTTAWA, ONTARIO, April 12, 2013 - Avivagen Inc. (VIV.V), a wellness company committed to developing and delivering products that support and improve the health and quality of life for animals and the people who care for them, is pleased to announce its applications for the conversion of liabilities into common shares and to extend the term of certain common share purchase warrants. These actions are intended to strengthen the company's financial position and are subject to regulatory approval.
Conversion of Liabilities
Avivagen has reached agreements for the conversion of $721,668 of payables into common shares, which will result in the issuance of 10,612,757 common shares at a price of $0.068 per share. On approval, this action will reduce Avivagen's balance sheet liabilities and increase its shareholders' equity by that same dollar amount.
Chris Boland, CFO of Avivagen commented "This action enhances the financial strength of our company and should improve our ability to achieve stated objectives. We appreciate the support of our business partners in undertaking these conversions."
Extension of Common Share Purchase Warrants
Avivagen has applied to extend the expiry date of 3,975,000 outstanding common share purchase warrants. The warrants were issued by Avivagen in April and May of 2011 by way of private placement and currently have expiry dates of April 29, 2013 and May 27, 2013. Each warrant entitles the holder to acquire one common share of Avivagen at a price of $0.10. The expiry date of the warrants is proposed to be extended to June 30, 2013. All other terms and conditions of the warrants will remain unchanged.
Cameron Groome, CEO and President noted "Financial sustainability and supportive shareholders are important to our company, helping us develop and maintain all types of business relationships. Increasing Avivagen`s equity base and reducing its liabilities assists with the supply, distribution and marketing alliances needed to realize our many animal health opportunities."
The conversions and extensions referenced above are effective April 11, 2013 subject to the necessary TSX Venture Exchange and Ontario Securities Commission approvals.
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 food animals by taking advantage of natural mechanisms for maintaining optimal 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 enhances the body's own systems to maintain and improve health, particularly by supporting immune function. Avivagen's commercial technology is Fully-Oxidized Beta-Carotene (OxC-Beta).
OxC-Beta compounds occur naturally 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 helps support immune function, which can result in meaningful overall health improvements. In pets, improvements are seen in overall vitality and energy, skin, coat and gastrointestinal wellness. Food Animal benefits include healthier growth, better utilization of feed and decreased mortality.
The first commercial product launched by Avivagen is Oximunol(TM) Chewables for dogs of all ages
About Oximunol(TM) Chewables - "Optimized Health in a Chewable Tablet"
Oximunol(TM) is a scientifically-formulated chewable tablet containing Avivagen's proprietary, patented active ingredient, OxC-beta. Oximunol(TM) Chewables are currently available for dogs of all ages in the United States, working with a dog's own immune system to optimize overall health and well-being.
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. The forward-looking statements reflect the current expectations of Avivagen Inc. regarding future results or events. 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. 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:
- Investment & Company Information