By Sheri Kasprzak
New York, March 13 - Viragen, Inc. has settled a $5 million private placement of units comprised of one series J convertible preferred share and one warrant for 80 shares.
The company sold 50,000 units at $100.00 each to institutional investors.
The 24% preferreds are convertible into common shares at $1.25 each. The conversion price is a 101.6% premium to the company's closing stock price of $0.62 on March 10.
The warrants are exercisable at $1.25 each for five years.
Dawson James Securities was the placement agent and may act as underwriter for a $20 million follow-on offering of stock. The terms of this sale have not yet been determined.
Proceeds from the most recent placement will be used for research and development, regulatory strategies and international marketing of the company's Multiferon product.
Based in Plantation, Fla., Viragen develops treatments for viral diseases and cancers.
| Issuer: | Viragen, Inc.
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| Issue: | Units of one series J convertible preferred share and one warrant for 80 common shares
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| Amount: | $5 million
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| Units: | 50,000
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| Price: | $100.00
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| Dividends: | 24%
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| Conversion price: | $1.25
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| Warrants: | For 80 shares per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.25
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| Placement agent: | Dawson James Securities
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| Settlement date: | March 13
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| Stock symbol: | AMEX: VRA
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| Stock price: | $0.58 at close March 13
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