AZUSA, Calif., March 13 /PRNewswire-FirstCall/ -- Viral Genetics has restructured the terms of $2.4 million of principal value of convertible debentures that were originally acquired by various investors in a March 2006 financing (the “Restructured Notes”).
“We are pleased to have completed this important restructuring and are now looking forward to focusing on fund-raising and the completion of studies recommended by our Scientific Advisory Board as part of our US development strategy,” said Haig Keledjian, CEO and President.
Under the terms of the restructuring, the changes that have been made to the Restructured Notes include the following:
* $830,854 of outstanding principal and accrued interest has been converted into 10,385,673 shares of common stock through exchange of debt and exercise of warrants, which has the effect of reducing the Company’s liabilities by the same amount; * the conversion price of the remaining principal and interest of $1,584,890 is fixed at $0.08 per share; * no additional monthly redemption or amortization payments at variable discount-to-market pricing are required, with the entire balance due September 1, 2008; * the Company may prepay the balance due before September 1, 2008 subject to certain conditions and provided that a 20% premium is required; * holders will receive approximately 5.4 million warrants with an exercise price of $0.15 per share expiring February 2012 in exchange for canceling unit purchase warrants that had previously entitled the holders to acquire approximately $1.8 million in additional principal amount of debentures; * the conversion prices and warrant exercise prices are subject to anti-dilution adjustment upon equity issuances below $0.08 while the debentures and warrants are outstanding.
The Company is required to register the common shares underlying the remaining outstanding balances of the Restructured Notes and new warrants.
The holders of an additional $385,348 principal value of debentures and 994,228 warrants who did not participate in the restructuring had the conversion and exercise prices of those securities reset to $0.08.
For additional information, please contact Viral Genetics at 626-334-5310.
About Viral Genetics
Viral Genetics, Inc. is a biotechnology company that discovers and develops immune-based therapies for HIV and AIDS using its thymus nuclear protein compound. This compound may have other potential applications for other infectious, autoimmune, and immunological deficiency diseases that the company intends to study in the future. Viral Genetics believes that VGV-1 represents a significant and unique approach to treating HIV due to the apparently novel mechanism, low toxicity profile, simple dosing regimen, and short-course of treatment. Online at www.viralgenetics.com
This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports filed with the SEC. VGV-1 is not approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions contained therein are reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of VGV-1 in the treatment of any disease or health condition, the completion of studies and tests on time or at all, and the successful outcome of such studies or tests. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.
Viral Genetics
CONTACT: Viral Genetics, +1-626-334-5310
Web site: http://www.viralgenetics.com/
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