NanoViricides Provides Update on Recent Events
SHELTON, Conn., July 12, 2018 /PRNewswire/ -- NanoViricides, Inc. (NYSE MKT: NNVC) (the "Company") reports that it is financially sound and that its drug candidates in the HerpeCide™ program are moving towards the clinical stage at a reasonable pace.
On July 10, 2018, Dr. Milton Boniuk resigned from his position as a member of the Board of Directors and from all Committees of the Board. Another Director, Dr. Mukund Kulkarni, who had previously resigned solely from the Audit Committee, has rescinded his resignation and is continuing as a member of the Audit Committee. The Company has filed a Form 8-K disclosing these changes, to which Dr. Boniuk's resignation letter is attached as required, on July 10, 2018.
The Company believes Dr. Boniuk resigned because the remainder of the Board, including the independent directors, disagreed with his agenda and the positions he demanded the Company and the Board of Directors follow. The Company believes that its current plan to engage a new Chief Executive Officer with Clinical Pharmaceutical expertise and to progress to clinical trials for its Shingles antiviral candidate is the appropriate direction for the Company to take.
A number of assertions that Dr. Boniuk has made in his resignation letter are inaccurate, and reflect his own agenda, which the remaining independent directors and the Board disagreed with. The Audit Committee of the Board of Directors, to assure compliance, and pursuant to its charter, has initiated an internal review of the Company's related party transactions that have all been previously disclosed. Despite Dr. Boniuk's assertion, Management has never refused to provide the Audit Committee with requested information and the review is currently in progress. Therefore, we believe Dr. Boniuk's statements related to the review are inaccurate and misleading.
The Company has received a deficiency notice from the NYSE American that it does not meet the listing standards since the Audit Committee is required to have at least three members who are independent Directors on the Board. The Company currently has two members on the Audit Committee with the resignation of Dr. Boniuk and the return of Dr. Kulkarni. The Company anticipates that it will shortly correct this deficiency with the appointment of an additional independent director.
The Company's search for a new CEO is expected to come to fruition very soon. Along with a new CEO joining, the Company also anticipates adding another independent member to the Board of Directors. This will restore compliance to listing requirements as well as strengthen the Company's position in pharmaceutical drug development. Meanwhile, the Board has extended Dr. Anil Diwan's employment agreement for an additional three years, providing continuity of leadership for the Company through its anticipated clinical drug development process.
The Company further reports that it is progressing satisfactorily in moving its first HerpeCide™ program candidate towards human clinical trials, with no unforeseen obstacles. We are dependent on external collaborations for this development, and continue to optimize our work-plan to achieve the fastest possible timelines with the given constraints and availability of resources. The Company believes it will be able to begin making definitive announcements regarding these developments within a short period of time.
NanoViricides, Inc. (www.nanoviricides.com) is a development stage company that is creating special purpose nanomaterials for viral therapy. The Company's novel nanoviricide® class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them. The Company 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 including EKC and herpes keratitis, Hepatitis C, Rabies, Dengue fever, and Ebola virus, among others.
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by NanoViricides, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Although it is not possible to predict or identify all such factors, they may include the following: demonstration and proof of principle in pre-clinical trials that a nanoviricide is safe and effective; successful development of our product candidates; our ability to seek and obtain regulatory approvals, including with respect to the indications we are seeking; the successful commercialization of our product candidates; and market acceptance of our products.
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SOURCE NanoViricides, Inc.