NanoViricides Inc (OTCBB:NNVCD) raises $9.3 million


Dallas, Texas 09/20/2013 (Financialstrend) – Since September 13, NanoViricides Inc (OTCBB:NNVCD) shares have jumped up in value by over 50%. The share is trading at $5.838 as of close of business on September 19. This translates to a over 7.5% increase over its previous day close of $5.43. The share outperformed the benchmark Dow Jones index which was down by quarter of a point percentage and the health care index which was down by 0.4%. At these reworked valuation, the company market capitalization is $271 million with 32 million public float.

NanoViricides had entered into an agreement with unnamed purchasers relating to sell part of its common stock at $3.5 per share on September 9. The agreement also included granting of a warrant shares which has a face value of $5.25 per share and is redeemable 5 years after issuance. On September 12, the company announced that the deal is considered closed and was able to raise a net of $9.64 million after accounting for $668,540 towards expenses including attorney fee and placement agent fee. In exchange the private investors will own 2.85 million units of common stock and warrants.

In a related development, the company also announced on September 10 that it meets all the regulators requirements and bench marks of popular national stock exchanges post it’s executing of reverse split of company’s outstanding common stock. With the infusion of the new funds, the company will have over $22 million in cash which it hopes to utilize to fund its phase 1 and phase 2 trials of more than 5 advanced drug candidates they have developed. The company also reported that the company will trade under the ticker name “NNVCD” for the first 20 business days post which it will revert to “NNVC”. With the reverse split executed, the company expects its issued and outstanding common stock to be around 46.9 million shares.