NanoViricides (OTCBB:NNVC) said Friday that it has raised $5.0 million drawing down on its previously announced registered shelf offering.
The offering, which became effective on April 29, continues to remain effective, the company said.
The new funds gives NanoViricidies more than two years of current
operating expenses as cash in hand, allowing the company the ability to
settle certain testing costs for its anti-influenza drug candidate and
to support the costs of additional equipment needed for the production
of future clinical batches of its drug candidates.
is a company that holds more than one promising clinical development
programs under its belt, with its most advanced - FluCide - set for an
investigational new drug (IND) application.
The drug development company makes anti-viral therapies using
nanomaterials for a number of viral diseases including seasonal
influenza, HIV/AIDS, oral and genital herpes, and the Dengue virus,
among many others.
has five drug development programs within its pipeline, including
FluCide, a drug that works against all forms of influenza such as
seasonal and epidemic flus, and HIVCide, a drug that works against the
HIV/AIDS virus, which the company says could become a "functional cure"
for the disease.
FluCide, which has the most clinical data of all of the company's
potential drugs and is therefore being advanced through the FDA process
first, works on the same principles as the rest of NanoViricides' platform.
The financing announced today was received from a single investor,
Seaside 88 LP, a Florida-based limited partnership that has invested
around $20 million in NanoViricides so far.
Yesterday, the company received $2.5 million on closing, and has
entered into a securities purchase agreement with Seaside for up to
5,000 shares of its newly created Series C Preferred stock, at a price
of $1,000 per share.
A certain number of the preferred C shares will convert to common
stock automatically every 14 days. The amount of common stock issued at
each conversion will be equal to 15 per cent of the average volume of
common stock traded in the previous two weeks, plus common stock
resulting from conversion of accrued dividend, the company said.
"Conversion based on trading volume provides a substantial amount of
stability to the trading market," said CEO and CFO, Dr. Eugene Seymour,
adding, "it takes away the adverse price impact that could happen when a
fixed dollar amount is converted every two weeks, which was the case
with our Series B Preferred Stock."
The first conversion of Series C Preferred shares to common stock
took place on Thursday, with additional conversions to follow every two
"We are pleased that Seaside has agreed to finance the company on
terms that are substantially more favorable to the interests of our
shareholders than in the past,” said president Anil R. Diwan.
"This financing is very important for the company as we advance our
influenza drug candidate towards IND stage and future human clinical
trials. It will also help us to continue to move forward with all of the
drug programs in our broad pipeline."
In early April, the company said that the U.S. health regulator gave a
"good roadmap" toward an investigational new drug (IND) application
for FluCide at a pre-IND meeting.
The company said it received comments and exchanged a list of
questions with the FDA prior to the meeting, and believes the health
regulator has given the company a good roadmap for advancing the drug
toward an investigational new drug application.
So far, FluCide has been tested in thousands of animals, without
having a failure. Results have showed effectiveness in inhibiting the
cycle of infection, and the spread of the virus, as well as long-lasting
effects after drug use was stopped.
The clinical drug candidate is anticipated to be effective against
the majority of strains and types of influenzas like swine flu, seasonal
flu such as H1N1, H3N2, highly pathogenic types such as H7N and H9N, as
well as the highly lethal bird flu, or H5N1.
The drug company is currently working on the studies needed for an
IND submission for FluCide. It also noted that it is working on enabling
current good manufacturing practice (cGMP) capabilities for its drug
candidates, for future human clinical trials.
Midtown Partners acted as the placement agent for this transaction
and received a cash placement fee of six per cent, the company said.