February 16, 2021

Avivagen Inc. Announces Closing Of $7.5 Million Bought Deal Unit Offering


See original press release here

OTTAWA, ON / Business Wire/– February 16, 2021 – Avivagen Inc. (TSXV:VIV) (“Avivagen” or the “Company”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhance and support immune function, thereby supporting general health and performance, announced today that it closed its previously announced offering of 15,000,000 units of the Company (the “Units”) on a “bought deal” basis, at a price of $0.50 per Unit (the “Offering Price”) for aggregate gross proceeds of $7,500,000 (the “Offering”). Bloom Burton Securities Inc. (the “Underwriter”) acted as underwriter for the Offering.

Each Unit consisted of one common share in the capital of the Company (each a “Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share until February 16, 2024 at an exercise price of $0.75 per share.

The net proceeds of the Offering will be used to fund research and development expenses, sales and marketing costs, product registration, interest expense, working capital and general corporate purposes.

In connection with the Offering the Company paid a cash fee of $525,000 to the Underwriter and issued broker warrants entitling the holders to acquire, in the aggregate, 1,050,000 Common Shares at the Offering Price until February 16, 2023.

The Units were offered by way of a short form prospectus pursuant to National Instrument 44-101 – Short Form Prospectus Distributions to qualify the distribution of the Offered Units in each of the provinces of British Columbia, Alberta, and Ontario.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and may not be offered or sold within the United States or to, or for ‎the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. ‎registration requirements. This press release does not constitute an offer for sale of securities, nor a solicitation ‎for offers to buy any securities in the United States, nor in any other jurisdiction in which such offer, solicitation or sale would be unlawful. Any public offering of securities in the United States must be made by means of ‎a prospectus containing detailed information about the Company and management, as well as financial ‎statements.‎

About Avivagen
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications. By unlocking an overlooked facet of βcarotene activity, a path has been opened to safely and economically support immune function, thereby promoting general health and performance in animals. Avivagen is a public corporation traded on the TSX Venture Exchange under the symbol VIV, and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

Notice Regarding Forward Looking Statements
This news release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Avivagen to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include the anticipated use of proceeds. Circumstances may necessitate or make it desirable that Avivagen use the proceeds of the Offering for different purposes than described above.  Readers are directed to the detailed discussion of risk factors related to the Offering that were set forth in the prospectus filed by Avivagen on February 9, 2021 in connection with the Offering. The forward-looking statements included in this news release are made as of the date of this news release and Avivagen does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information:

Avivagen Inc.

Drew Basek
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Phone: 416-540-0733
E-mail: d.basek@avivagen.com

Kym Anthony
Chief Executive Officer
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6

Head Office Phone: 613-949-8164

Website: www.avivagen.com