Advanced Viral Research Corp. Announces Suspension of Operations Due to Inability to Secure Financing
YONKERS, NY--(MARKET WIRE)--Jan 23, 2009 -- Advanced Viral Research Corp. (OTC BB:ADVR.OB - News), today announced that the Company has suspended operations due to the inability to secure financing. As a result of the suspension of operations and anticipated inability to pay debts as they will become due, the Company is in default under the transaction documents issued in conjunction with the secured convertible debentures to YA Global Investments, L.P. (f/k/a Cornell Capital Partners L.P.) ("YA Global"). Under the debentures and transaction documents, upon an event of default, YA Global, among other things, has the right to (i) accelerate all amounts of principal and interest outstanding under the debentures; and (ii) enforce its security interest in the assets securing the Company's obligations arising under the debentures and transaction documents. ADVR is indebted to YA Global under the debentures and transaction documents in the outstanding principal amount of $1,952,000 plus accrued and unpaid interest of approximately $220,000 (the "Amounts"). The Company currently does not have sufficient cash resources to pay the Amounts nor does it have any agreements, agreements in principle or understandings to acquire sufficient cash resources to pay the Amounts.
ADVR is communicating with YA Global regarding the default as well as actively seeking sources of financing. If ADVR fails to secure sufficient capital in the next several days, the Company may be forced to face the consequences of a default on its debt obligations under the debentures and transaction documents which may include, the transfer, conveyance and assignment to YA Global of all of ADVR's right, title and interest to and possession of the Company's assets, properties and business. There can be no assurances that the Company will obtain financing on terms favorable to ADVR, if at all.
About Advanced Viral Research Corp.
Advanced Viral Research Corp. is a biopharmaceutical company dedicated to the discovery and development of small molecule anti-cancer drugs. Its initial compounds, AVR118 and AVR123, represent a new class of cytoprotective agent that targets, among other things, some of the most problematic symptoms associated with clinical cachexia or the so called wasting syndrome. In addition, AVR118 and AVR123 have also been shown to possess topical wound healing properties in animal models. Various degenerative conditions associated with cachexia such as cancer, HIV-AIDS and chronic inflammation are potential disease targets for AVR118 and AVR123 therapies. For further information regarding Advanced Viral Research Corp., please visit the website at http://www.adviral.com.
This news release contains forward-looking statements that involve risks associated with clinical development, regulatory approvals, including application to the FDA, product commercialization and other risks described from time to time in the SEC reports filed by the Company. AVR118 and AVR123 are not approved by the U.S. Food and Drug Administration or any comparable agencies of any other countries. There is no assurance that the Company will be able to secure the financing necessary to continue and/or complete the clinical trials of AVR118 or AVR123 or satisfy certain other conditions relating to clinical trials or that if completed, will assist the Company in obtaining FDA or other regulatory approval. The Company undertakes no obligation to update or revise the information contained in this announcement whether as a result of new information, future events or circumstances or otherwise.