Avivagen Announces Review of Strategic Alternatives

Ottawa, ON /Business Wire/ May 18, 2023 /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 enhances feed intake and supports immune function, thereby supporting general health and performance, announces the appointment of a Special Committee of the Board to review and assess strategic alternatives for the Company to maximize stakeholder value going forward.

The Special Committee will consider all potential alternatives including the sale, in whole or in part, of the Company. As part of that process and to support the strategic review, the Company has implemented certain cost cutting measures including reducing staff and suspending or terminating certain of its consulting arrangements in Asia and Mexico.

Avivagen’s principal product, OxC-beta™, represents an innovative and science backed ingredient platform that has broad health and nutrition benefits in three major market verticals: livestock, companion animals and human health supplements. The technology is protected by a strong patent portfolio consisting of seven patent families. The chemical composition and mode of action are well understood and supported by six peer reviewed publications. Efficacy for improving productivity in the food animal industry is supported by over 100 clinical and field trials and eight peer reviewed publications.

Oxc-beta has a well-established safety profile for animal and human use supported by an impressive history of use and a suite of internationally standardized safety studies. The product is approved for use in animal feeds in ten countries: Taiwan, Philippines, Thailand, Malaysia, Vietnam, Australia, China, Mexico and Brazil as well as being self-affirmed as Generally Regarded as Safe (GRAS) in the United States. The product has been fed to over 46.6 million food animals (poultry, swine, and dairy cattle), 133,820 dogs and 4,000 people.

With strong technical attributes, proven efficacy, robust IP protection and recurring sales to multiple international customers, the OxC-beta technology holds exceptional value. Updates on the strategic review process will be provided by way of press release, if and when they occur. While every effort will be made to find a suitable transaction or series of transactions, there can be no assurance that any transaction will occur.

About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC- beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Mexico, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia.

Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

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 set out in this news release relating to modifications to and execution of the Company’s business plan, the review and availability of potential strategic opportunities for the Company, the abilities and anticipated success of the Strategic Committee, planned future communication , expectation as to further adoption of or orders for the Company’s products, the possibility that trials underway could lead to additional orders in the future and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as growth promoters are forward-looking statements. These 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, risks and uncertainties regarding strategic alternatives including the terms of their availability whether they will be available at all, and the effects of their implementation, the Strategic Committee may not have the results anticipated, unforeseen factors could limit the growth of the Company and the adoption of its products, customers are under no obligation to make additional orders and may not order increasing quantities of the Company’s products, partnerships may not be as successful as hoped, trials may not be successful or may not lead to additional adoption of the Company’s products, 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 as growth promoters in livestock feeds, all of which could occur due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. 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