Avivagen Inc. to Issue Shares to Holders of Debentures in Lieu of Annual Maintenance Fee

Rhea-AI Summary

Avivagen Inc. (TSXV:VIV, OTCQB:VIVXF) is set to issue 3,931 common shares at $0.58 each to cover a $2,280 maintenance fee on debentures from April 2019. This follows a previous issuance to cover $107,560 owed for annual fees related to 10% secured debentures. The company can opt for cash or share payments as per the debenture terms. Avivagen focuses on developing products for livestock, companion animals, and humans that enhance immune function and promote health, emphasizing its OxC-beta™ technology as a non-antibiotic alternative in animal feeds.

Positive

• Avivagen is actively addressing maintenance fees through share issuance, indicating financial management.
• OxC-beta™ technology offers a non-antibiotic solution for livestock health, aligning with global trends to eliminate in-feed antibiotics.

Negative

• The issuance of shares may lead to dilution of existing shareholders' equity.
• Reliance on OxC-beta™ technology for market acceptance and regulatory approval remains uncertain.

Avivagen Inc. (TSXV:VIV, OTCQB:VIVXF) (“Avivagen” or the “Corporation”) announces that a total of 3,931 common shares will be issued at the rate of $0.58 per share to satisfy the maintenance fee of $2,280 owing in respect of the debentures issued on April 9, 2019. This issuance is further to Avivagen’s previous announcement that it had opted to issue common shares to satisfy $107,560 owing to the holders of 10% secured debentures issued by Avivagen on March 28, 2019 and April 9, 2019 on account of an annual maintenance fee owing to such holders. Pursuant to the terms of such debentures, Avivagen has the option of paying such maintenance fee in cash or in common shares.

About Avivagen
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It 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. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Philippines, Mexico, Taiwan, New Zealand, Thailand, Australia and Malaysia.

Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements about OxC-beta’s ability to replace antibiotics commonly added to livestock feeds or to fulfill the global mandate to remove in-feed antibiotics as growth promoters, are forward looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, Avivagen’s products may not the gain market acceptance or regulatory approvals necessary to fulfill the global mandate to remove in-feed antibiotics as growth promoters. Readers are referred to Avivagen’s latest annual information form and management’s discussion and analysis available at www.sedar.com for a discussion of risks associated with its business. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

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

Copyright © 2021 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210409005023/en/

FAQ

What is Avivagen's current share issuance related to debentures?

Avivagen is issuing 3,931 common shares at $0.58 each to satisfy a $2,280 maintenance fee for debentures.

What is Avivagen's stock symbol?

Avivagen trades under the stock symbol VIVXF on the OTCQB.

What is the purpose of Avivagen's OxC-beta™ technology?

OxC-beta™ technology is designed to support immune function in livestock, providing a non-antibiotic alternative to traditional animal feed additives.

How does Avivagen plan to address its debenture obligations?

Avivagen plans to address its debenture obligations by issuing common shares instead of cash.

What are the risks associated with Avivagen's forward-looking statements?

Risks include potential lack of market acceptance and regulatory approvals for Avivagen's products.