Avivagen Makes Voluntary Assignment into Bankruptcy Under the BIA

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Ottawa, Ontario--(Newsfile Corp. - April 24, 2024) - Avivagen Inc. (TSXV: VIV) ("Avivagen" or the "Company"), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhance feed intake and support immune function, thereby supporting general health and performance, announced today that is has made a voluntary assignment in bankruptcy for the benefit of its creditors pursuant to section 49 of the Bankruptcy and Insolvency Act (Canada) ("BIA"). BDO Canada Limited has consented to act as Licensed Insolvency Trustee and will administer the estate and realize on the Company's assets in accordance with the BIA.

A notice of the bankruptcy and particulars of the first meeting of creditors will be sent to creditors by mail in the coming days.

Avivagen announced on May 18, 2023 that it had formed a Special Committee of the Board of Directors to explore strategic alternatives to maximize value for all stakeholders of the Company. The Special Committee explored many alternatives and engaged with many of the world's leading animal health and animal feed and nutrition companies, including Fortune 500 companies. Avivagen connected with existing suppliers, distributors, and new parties, leading to a number of reviews of the opportunity under confidentiality and with access to the Company's core information. One international conglomerate, specialized in the animal health industry, put forward a non-binding letter of intent ("LOI") that was signed and that would have seen a significant value ascribed to the animal health business of Avivagen. Following the completion of an agreed to exclusivity period and with significant diligence conducted, the other party notified Avivagen of a change at their company and that they could no longer complete the transaction. The LOI is no longer valid and other parties were contacted to engage in a strategic transaction, with conversations not producing an offer for the Company or its assets.

After a careful review of available options under the process to find strategic alternatives, and following thorough consultation with its legal and financial advisors, the Special Committee and the entire Board of Directors determined that the only option was to file a bankruptcy under the BIA. Despite the growing industry enthusiasm for antibiotic-free, sustainable food production and Avivagen's encouraging field and commercial results, including with customers in multiple countries, there are no viable opportunities to raise additional capital in the current market conditions and Avivagen was unable to identify a suitable solution available in the near term.