By Brady Huggett
Advanced Viral Research Corp. (ADVR) entered a financing deal for a $20 million equity line of credit, money to be used to move Product R into the clinic.
"[The credit] gives us an additional funding source for the multiple INDs [investigational new drug applications] we plan to file in the next fiscal year," said Alan Gallantar, chief financial officer of ADVR.
The financing was arranged by The May Davis Group, of New York, in which a private investor has committed to purchase shares of ADVR's common stock. ADVR, of Yonkers, New York, has 360 million shares outstanding and its stock (OTCBB:ADVR) closed at 45 cents Wednesday, up 7 cents, or 18 percent.
At its discretion, the company may sell shares of its stock at a price per share equal to the average of the three lowest bid prices for the stock over a 25-day trading period, ending on the date the company elects to draw on the equity line. The sales price to be paid for the shares at any one time by the investor is set between $100,000 and $2 million. ADVR also issued five-year warrants to the May Davis Group for 5 million shares at $1 per share.
ADVR's Product R is a non-toxic immunomodulator that preclinical studies have shown inhibits the production of CCR5 and CXCR4 chemokine receptors in HIV, interferes with the production of the E7 protein in human papilloma virus, and may be beneficial against rheumatoid arthritis.
"We are very pleased with this beginning relationship with May Davis," Gallantar said. "We expect them to take an increasing role in the investment possibilities at Advanced Viral Research."