Seaside 88 has purchased an additional $2.5 million of NanoViricides’ Series B convertible preferred stock. Seaside purchased 250,000 shares for $10 each, and the company will receive $2.3 million net after deducting brokerage commission and expenses.
The first conversion of $400,000 of Series B preferred stock to common stock will take place on January 3, 2011. Additional conversions will follow every 14 days. The pricing will be based on the same terms and conditions as the first option previously exercised by Seaside. The converted shares are estimated to represent less than 5% of the 10-day trading volume of the company’s stock.
“We now have more than 24 months of cash in hand, based on current rate of expenditure,” notes Eugene Seymour, M.D., CEO of the company. “This additional investment further strengthens our financial position.”
NanoViricides is creating nanomaterials for antiviral therapy. The company’s nanoviricide® class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them.
The firm is developing drugs against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal influenza, HIV, oral and genital herpes, viral diseases of the eye like EKC and herpes keratitis, hepatitis C, rabies, dengue fever, and ebola virus. The most advanced is FluCide-I, which is in IND-enabling studies against bird flu.
Commenting on the financing, Anil R. Diwan, Ph.D., president, says, “This allows us to continue our drug development programs towards an FDA filing stage.” Today's shelf offering was part of a letter agreement inked on September 16. Under that agreement Seaside purchased 250,000 shares for $10.00 per share and agreed to purchase an additional $2.5 million worth of the firm’s Series B convertible preferred stock within 90 days of the initial closing.