SHELTON, CONNECTICUT -- Monday, February, 13, 2017 -- NanoViricides, Inc. (NYSE MKT: NNVC) (the "Company") a global leader in the development of highly effective antiviral therapies based on a novel nanomedicines platform (the "Company"), reports today that a substantial portion of its Series B Convertible Debentures, with a maturity date of January 31, 2017, have been converted into restricted common stock, effectively retaining $5 million in cash for the Company.
The Company offered a conversion proposal to all holders of the Series B Convertible Debentures, with a total principal value of $6,000,000. An entity controlled by Dr. Boniuk and the Boniuk Charitable Foundation accepted the Company's offer to convert debentures in the aggregate principal amount of $5,000,000. The remaining Debentures in the amount of $1,000,000 principal, with accrued interest as of the Maturity Date, will be repaid to the holders thereof in cash. The Holders had the right to demand repayment of the principal balance and interest in cash or convert to shares of Common Stock at the conversion rate of $3.50 per share, as per the original debenture agreement. Given the downward effects in general on pre-revenue biopharma company stock prices in the last couple of years, and in particular on NanoViricides stock price, the Company's Board of Directors made a determination that it should offer a conversion price consistent with the recent stock price performance of NNVC stock. Director Dr. Milton Boniuk, a major debenture holder in Series B debentures, abstained from the voting.
The conversion price for the principal amount was $1.1533 representing the volume weighted average price of the Common Stock on the NYSE MKT from December 15, 2016 to January 30, 2017. This conversion price was a small premium of the closing bid price of the Common Stock on the Maturity Date of $1.1500.
"We have been able to add $5M to our cash with this conversion," said Eugene Seymour, MD, MPH, CEO of the Company, adding, "We have obtained the best possible conversion deal for our shareholders, with no discounts, and essentially at-market conversion into restricted shares. At the same time, this conversion wipes out $6M of our liabilities, and retains $5M in cash, bolstering our capital position significantly as we move the Company towards human clinical trials."
No agents were retained and no commissions or fees were paid for this conversion, other than usual attorneys' fees. This transaction will appear as a subsequent event in the Company's quarterly report for the period ending December 31, 2016.About NanoViricides
FDA refers to US Food and Drug Administration. EMA refers to the European Union’s office of European Medical Agency.