NanoViricides Files Quarterly Report for Period Ending September 30, 2017
SHELTON, Conn., Nov. 20, 2017 /PRNewswire/ -- NanoViricides, Inc. (NYSE MKT: NNVC) (the "Company") a global leader in the development of highly effective antiviral therapies based on a novel nanomedicines platform (the "Company"), filed its quarterly report for its first quarter of financial year 2018 in a timely manner with the Securities and Exchange Commission on Tuesday, November 14, 2017. The submission can be downloaded from the SEC website at: https://www.sec.gov/Archives/edgar/data/1379006/000114420417059130/tv478914_10q.htm.
This press release should be read in conjunction with the 10Q filed on November 14th, 2017.
NanoViricides reported that it had approximately $13.7 Million (M) of current assets (cash, cash equivalents, and prepaid expenses) as of September 30, 2017, the end of the reporting period. The net cash used in operating activities during this quarter was approximately $1.56 M. The Company's research and development (R&D) expenditure have decreased for the quarter but are in line with our budgeted estimates. Shareholder equity stood at approximately $18.52M for the quarter (unaudited figures). The Company had no revenues.
The Company also reported that the Company is now debt-free, with the redemption of the $5,000,000 Series C Convertible Debenture, which was perfected subsequent to the reporting period. The Company and the holder of the Debenture, namely, the IRA of Dr. Milton Boniuk, a director of the Company, converted the Debentures and unpaid interest through June 30, 2018, the original maturity date, into equity, on November 13, 2017. Additionally, early redemption fees and charges contained in the Debenture were waived in consideration of a payment of 150,000 shares of the Company's Series A Convertible Preferred Stock. The Series A preferred stock can convert into common stock only upon a change in control of the Company. There is no market for the Series A preferred stock. The Debenture was redeemed based upon the Company's closing stock price on November 10, 2017. The Company believes that its agreement with the holder to redeem the debenture at the current market value of the Company stock, was in the best interests of its shareholders, as it releases $5.5 Million of the Company's cash for executing on its current business plan.
The Company estimates that it has sufficient cash in hand to last more than one year of operations at the current rate of expenditure after taking into account the approximately $5M increase in available cash subsequent to redemption of the debenture C for equity. The Company further believes that the cash in hand is sufficient for advancing at least one drug candidate into an IND stage (IND= Investigational New Drug application). The Company has stated that it will be required to raise additional capital in the near future to fund additional drug candidates as they advance towards IND stage and into human clinical trials.
During this quarter, the Company has reported excellent results on efficacy of its shingles topical treatment in its HerpeCide™ program. Certain shingles drug candidates were found to be about five times more effective than acyclovir, the standard of treatment, in cell culture studies. These data were presented at the 2017 Annual American Society of Virology meeting in Madison, WI.
The same drug candidates also showed very high effectiveness in controlling VZV (varicella zoster virus, the causative agent) in human skin patch model for shingles in Professor Moffat's lab at the SUNY Upstate Medical Center, Syracuse, NY. The shingles drug candidate is now moving towards identification of a clinical candidate for further IND-enabling studies.
The same drug candidates were found to be highly effective in protecting the retina from damage when infected with HSV-2, one of the causative agents of viral acute retinal necrosis (v-ARN) in a mouse model of the disease in the Brandt Lab at CORL, University of Wisconsin, Madison, WI. These data were presented on November 10th at the 2017 OMIG meeting of the American Society of Ophthalmology. The drug candidates were tested as intra-vitreal injections, and will require further drug development for this modality of administration. If this development, and further studies in the v-ARN model, are successful, the Company may add v-ARN to the growing list of indications targeted by the HerpeCide program. The Company is currently developing drugs against at least four indications in this program, namely (a) HSV-1 "cold sores" skin cream, (b) HSV-2 genital ulcers, (c) VZV (shingles) topical skin cream, and (d) eye drops for herpes keratitis, a disease of the external eye. The Company has continued work on its FluCide™ program at a lower priority.
The Company also stated that it has made progress towards licensing the VZV area by initiating an independent valuation of the assets. In addition, subsequent to the reporting period, the Company has retained counsel for negotiating the license on its behalf.
About NanoViricides
NanoViricides, Inc. (www.nanoviricides.com) is a development stage company that is creating special purpose nanomaterials for antiviral therapy. The Company's novel nanoviricide® class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them. The Company is developing drugs against a number of viral diseases including H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, viral diseases of the eye including EKC and herpes keratitis, Hepatitis C, Rabies, Dengue fever, and Ebola virus, among others. This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. Actual events could differ materially and substantially from those projected herein and depend on a number of factors. Certain statements in this release, and other written or oral statements made by NanoViricides, Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in documents filed by the company from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Although it is not possible to predict or identify all such factors, they may include the following: demonstration and proof of principle in preclinical trials that a nanoviricide is safe and effective; successful development of our product candidates; our ability to seek and obtain regulatory approvals, including with respect to the indications we are seeking; the successful commercialization of our product candidates; and market acceptance of our products.
SOURCE NanoViricides, Inc.
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