NanoViricides, Inc. (OTC BB: NNVC) (the "Company"), announced today that it has retired the remainder of the Series C Convertible Preferred Stock previously purchased by Seaside 88, LP ("Seaside"), with a cash payment. This transaction was completed by a mutual agreement between Seaside and the Company.
The Company continues to hold approximately $18M of cash plus prepaid expenses in hand after this transaction. The Company believes that these funds are sufficient for more than two years of operating expenses. The Company also believes that the current cash position is sufficient for advancing its anti-influenza drug candidate into initial human clinical trials.
As previously reported, the Company recently sold $6M of its Series B Convertible Debentures to three family investment offices and a charitable foundation, all of whom have been long term investors in and supporters of the Company. As such the Company has attained a strong financial position. With this additional liquidity, the Company's Board of Directors determined that retirement of the Convertible Preferred Series C Stock was in the best interests of the Company's shareholders and initiated a discussion of a possible redemption with Seaside. A part of the funds obtained in the sale of the Series B Convertible Debentures were utilized to retire the Series C shares.
"We have been very happy with the strong financial support that Seaside has provided to the Company," said Anil R. Diwan, PhD, Chairman of the Company, adding, "Seaside has invested a total of $25M into the Company over the past few years. Their funding has allowed us to focus on drug development without any fund-raising distractions. We have been able to advance our influenza drug pipeline with the use of this financing. Further, we have been able to obtain sufficient capital to fund our upcoming studies through IND filing and initial human clinical trials."