Company Expects to Begin Licensing Vitargus to Marketing Partners in 2020
FREMONT, CA, Feb. 25, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- American BriVision (Holding) Corporation (ABVC), a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, CNS, and ophthalmology, today announced it has postponed the public offering of its Series A Convertible Preferred Stock until a more opportune time. Accordingly, it has notified the US Securities and Exchange Commission to withdraw the Registration Statement on Form S-1, which was filed in connection with the public offering and declared effective on August 7, 2019. Further, the engagement agreement with Boustead Securities has not been renewed as permitted under its terms.
According to Howard Doong, the CEO of American BriVision, “This process has taken longer than anticipated partially due to the length of time necessary to receive NASDAQ approval. While we are confident in our ability to be listed on NASDAQ in the near future, we have noted that recently our stock price had declined below the level acceptable to us to consider a significant financing, as it would cause significant dilution to our existing shareholders. As a result of our expectation that we will be able to achieve several important medical milestones this year, we believe the company’s valuation will improve in 2020 and create a more favorable climate for a larger capital raise. In the interim, the company may consider raising some capital through smaller private placements.”
Dr. Doong said one of the earliest milestones expected to be achieved is the licensing of ABVC’s innovative vitreous substitute, Vitargus, to one or more marketing partners. “Since it has demonstrated in clinical trials that, compared with other currently used methods, patients undergoing surgery to re-attach the retina through Vitargus are able to recover more quickly and experience little side effects to retinal tissue and vision. Also, because Vitargus is bio-degradable, there is no need for a second surgery.”
Dr. Doong concluded, “While the order of events may change, our plans for 2020 remain the same: properly fund our ongoing clinical studies through private placements; up-list ABVC stocks to a national exchange; and, if necessary, complete a public offering.”
About American BriVision
American BriVision is a clinical stage biopharmaceutical company focused on utilizing its licensed technology to conduct proof-of-concept trials through Phase II of the clinical development process at world-famous research institutions (such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center). The company has an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development.
CAUTIONARY STATEMENT CONCERNING FORWARD LOOKING STATEMENTS
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including the possibility of unfavorable terms for planned financing and the possibility that we may be unable to complete the up-listing in the currently anticipated timelines or at all, that the possibility of unfavorable results from ongoing and additional clinical trials involving Vitargus and the possibility that we may be unable to complete one or more of such trials in the currently anticipated timelines or at all. Further, it is possible that the parties may make a strategic decision to discontinue development of Vitargus, and as a result, Vitargus may never be successfully commercialized. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; our having adequate funding to conduct our clinical trials; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this document and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this document, and other statements made from time to time by us or our representatives that might occur.
Andy An – Chief Financial Officer