OTTAWA, ONTARIO, March 5, 2013 - Avivagen Inc. (TSX Venture Exchange: VIV), is pleased to announce that based on strong interest from two institutional investors, it has issued 9,878,573 common shares and an equal number of common share purchase warrants for gross proceeds of $691,500.11 through a non-brokered private placement. This brings the total number of institutional investors who have holdings in Avivagen to three.
This private placement involved the sale of units, each comprised of one common share and one common share purchase warrant, for a unit price of $0.07. Each warrant entitles the holder to acquire one common share of Avivagen at an additional purchase price of $0.10 per share for three years from closing.
In connection with the placement Avivagen also paid a total of $44,436.00 in cash and issued a total of 634,800 warrants in finder fees related to the placement. The warrants are on the same terms as the warrants issued to subscribers.
The net proceeds of the proposed offering will be used to fund working capital and commercialization expenditures and for general corporate purposes.
The securities issued under this private placement are and will be subject to restrictions on transfer, including a hold period ending four months after issuance. The private placement remains subject to TSX Venture Exchange approval. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
Avivagen, a wellness company, is developing and delivering products for animals and humans to assist in optimizing health and daily quality of life. Avivagen is advancing product candidates for the food animal market, companion animal market and various potential human applications. More information can be found at www.avivagen.com.
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:
David HankinsonGraham Burton, PhD
CEO, Avivagen Inc.President and Co-Founder, Avivagen Inc.
Phone: 902-825-9270Phone: 613-990-0969