PALO ALTO, Calif., Sept. 26 Avicena Group, Inc.(OTC Bulletin Board: AVGO), a late-stage biotechnology company that developscentral nervous system therapeutics for neurodegenerative diseases, announcedtoday that it had conducted an initial closing of its private offering ofPreferred Stock and warrants.
The Company received gross proceeds of $3,110,000 and in exchange sold3,110 shares of newly designated Series C Convertible Preferred Stock, whichare convertible (at $3.35 per share) into 928,358 shares of Common Stock,along with three classes of warrants: C-1 Warrants, exercisable for up to fiveyears at $4.19 per share to purchase an additional 696,269 shares of CommonStock; C-2 warrants, exercisable for 12 months at $4.61 per share to purchasean additional 674,620 shares and C-3 warrants, exercisable for five years topurchase up to 75% of the number of shares acquired upon exercise of the C-2warrants, up to a maximum of 505,965 shares. The shares were sold toinstitutional and accredited investors located in the U.S. and abroad.
Proceeds from this offering are expected to support ongoing clinicaldevelopment, regulatory submissions, and potential commercialization ofAvicena's lead programs in rare neurological disorders that represent asevere, unmet medical need. Avicena also plans to dedicate a portion of theseproceeds towards supporting the launch of its proprietary skin care line,Nurigene.
Belinda Tsao-Nivaggioli, Ph.D., CEO of Avicena, stated, "I am extremelypleased that our Company has obtained additional equity capital to support thesignificant next phases of the Company's research and commercializationactivities."
Avicena Group, Inc. (OTC Bulletin Board: AVGO) is a Palo Alto, California-based late stage biotechnology company that develops central nervous systemtherapeutics for neurodegenerative diseases. Avicena presently derives revenuefrom the sale of proprietary dermaceutical ingredients to skin caremanufacturers.
The announcement of the placement of securities detailed in this pressrelease shall not constitute an offer to sell or a solicitation of an offer tobuy the securities. Neither the securities issued in the private placement, orthe Common Stock issuable upon exercise or conversion of such securities havebeen registered under the Securities Act of 1933 or any state securities laws,and may not be offered or sold in the United States absent registration or anapplicable exemption from the registration requirements of the Securities Actand state securities laws.Contact: The Ruth Group (on behalf of Avicena Group) Stephanie Carrington / Sara Ephraim / (investors) (646) 536-7017 / 7002 email@example.com or firstname.lastname@example.org Janine McCargo / Jason Rando (media) (646) 536-7033 / 7025 email@example.com or firstname.lastname@example.org
SOURCE Avicena Group, Inc.