Viragen says holder of defaulted 16% convertible notes calls for immediate payment

By Sheri Kasprzak

New York, Aug. 2 - Viragen, Inc. said Thursday in an 8-K filed with the Securities and Exchange Commission that the holder of defaulted convertible promissory notes is demanding immediate payment of the notes.

The notes, which now bear interest at the 16% default rate, were allegedly defaulted upon in early July.

According to the 8-K, the holder plans to exercise its right to accelerate payment of an amount equal to 110% of the outstanding principal plus accrued interest.

"Viragen does not currently have the resources to comply with the demands of the note holder, but continues to seek additional financing to support its operations and satisfy its indebtedness," said the company in the 8-K.

The $1.1 million in notes were issued in June 2004.

Based in Plantation, Fla., Viragen develops treatments for cancer and viral diseases.

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