NanoViricides (OTCBB:NNVC.OB) announced today that it has raised $5.0 million, drawing down on its previously announced registered shelf offering, which became effective on April 29, 2010.
The company received this financing from a single investor, Seaside 88, LP, a Florida-based limited partnership. Seaside has previously financed NanoViricides with a total of approximately $15 million under a similar arrangement.
NanoViricides entered into a securities purchase agreement with Seaside for the purchase and sale of up to 500,000 shares of its Series B Preferred Stock at the purchase price of $10.00 per share.
On November 2, Seaside purchased an initial 250,000 shares of the vompany’s Series B Preferred Stock at the purchase price of $10.00 per share for an aggregate purchase price of $2.5 million.
The Series B preferred stock is convertible into a number of shares of the company's common stock every two weeks, with the first $400,000, or 40,000 shares of the Series B preferred stock, converted on November 2.
The Series B preferred shares do not receive dividends, nor are they eligible for voting rights.
"We are pleased with this continuation of financing by Seaside," said president Dr. Anil R. Diwan.
"This financing comes at a crucial time as we are advancing our influenza drug towards IND stage. It will help us to continue to move forward with all of the drug programs in our broad pipeline."
NanoViricides develops antiviral therapies using nanomaterials. The company develops its therapies against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and Hepatitis C, among others.
The company previously announced that it has chosen a clinical candidate for its influenza therapy, namely NV-INF-1, under its FluCide anti-influenza nanoviricides program. NanoViricides is working on the pre-IND application with advice from consultant firm, Biologics Consulting Group.
CEO Eugene Seymour, added: "We continue to have more than 24 months of cash in hand, based on our current rate of expenditure. This additional investment will enable us to engage into expanding our pre-clinical studies towards filing an IND application to the FDA."