Avivagen Announces Drawdown from Credit Facility

OTTAWA, May 22, 2018 (GLOBE NEWSWIRE) -- Avivagen Inc. (TSXV:VIV) (OTCPink:CHEXF) (“Avivagen” or the “Corporation”), 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, announces it has drawn down CAD $800,000 from the credit facility provided by Bloom Burton Healthcare Lending Trust.

Avivagen intends to use the proceeds to build-up inventory for anticipated revenue growth, and fund regulatory applications in new jurisdictions. The credit facility was originally entered into in 2015 and is for a total of CAD $1.8 million, of which Avivagen is now fully drawn. Under the terms of the credit facility, the Corporation had until the end of May 2018 to fully access this facility, and therefore decided to draw down the remaining balance. Interest accrues on the outstanding balance at 12% annually, of which 7% per annum is payable each quarter and 5% per annum is payable on maturity of the loan. The loan matures on November 13, 2019, at which time the full principal and the 5% accrued interest is payable. 500,000 warrants were issued in 2015 in consideration for the facility, which are now fully vested.

ABOUT AVIVAGEN
Avivagen Inc. 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 and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com.

About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology arises from Avivagen’s discoveries about carotenoids, compounds that give certain fruits and vegetables their bright colors. Specifically, Avivagen has discovered the naturally occurring compound that is the actual source of β-carotene’s non-vitamin A activity and uses the synthetic version of the compound as the source of activity of Avivagen’s OxC-beta™ products. Importantly, the OxC-beta™ compound is a non-antibiotic means of maintaining optimal health and growth. OxC-beta™ Livestock is a proprietary product shown to be effective and economic in replacing the antibiotics commonly added to livestock feeds. OxC-beta™ Livestock is currently registered and available for sale in the Philippines, Taiwan and Thailand.

About Vivamune™ Health Chews (Vivamune)
Vivamune is an all-in-one chew that can dramatically simplify a pet’s supplement routine. Featuring a newly-discovered, novel immune-supporting active ingredient, OxC-beta™, Vivamune targets joints, skin and digestive health all in a single, tasty chew a pet will love. Vivamune is available for sale in the United States. For more information, visit www.vivamunehealth.com.

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 regarding the intended uses of the proceeds of the credit facility draw down and the potential for OxC-beta™ Livestock to fulfill the global mandate to remove all in-feed antibiotics as growth promoters are forward looking statements. 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, circumstances may require or make it more advantageous for Avivagen to allocate the proceeds of the credit facility to purposes other than those described above, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics in livestock feeds due to many factors, many of which are outside of Avivagen’s control. 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 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.

For more information:
Avivagen Inc.
Drew Basek
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Phone: 416-540-0733
E-mail: d.basek@avivagen.com

Kym Anthony
Chairman & Interim CEO
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164
Website: www.avivagen.com