Biotechnology Value Fund Confirms Nominees' Plans if Elected to the Avigen Board at Special Meeting
Urges Stockholders to Vote to Remove Current Board and Elect its Slate of Four Stockholder-Oriented Independent Nominees
NEW YORK, March 13 /PRNewswire/ --Biotechnology Value Fund, L.P. ("BVF"), today confirmed its plans for the future of Avigen, Inc. (Nasdaq: AVGN) if stockholders remove the current members of the Avigen Board and replace them with BVF's four new, stockholder-oriented, independent director nominees at the Special Meeting of stockholders to be held on March 27, 2009. BVF, the beneficial owner of approximately 30% of the Company's outstanding common stock, has called the Special Meeting to give stockholders the opportunity to protect what remains of Avigen's assets, which it believes are in danger of being completely wasted by the Board. Upon the removal of the current Board and election of BVF's nominees, subject to the nominees' fiduciary duties, BVF pledges the following:
First, all stockholders who desire liquidity will have the immediate ability to cash out of their investment in Avigen and receive a payment of $1.00 per share by tendering their shares into the BVF tender. Stockholders who do not wish to sell their shares will have the opportunity to participate with BVF in the future of Avigen;
Next, the nominees will immediately announce that Avigen will only consider and proceed with strategic transactions that guarantee a quantified worst-case outcome of approximately Avigen's liquidation value;
Next, the nominees will then commence negotiations with MediciNova, with the goal of reaching an agreement on the best terms possible for all Avigen stockholders;
Next, the nominees will consider any other transactions that satisfied the downside protection requirements described above; and
Ultimately, the nominees will present any transaction that satisfies the downside protection requirements described above and that the nominees believe is in the best interests of stockholders to stockholders for their approval.
Should the nominees be unable to negotiate final terms with a third party that satisfies the requirements described above, or should such transaction not be approved by stockholders, the nominees intend to promptly return the Company's remaining cash to stockholders.
Mark N. Lampert BVF Partner stated, "In addition to confirming our plan for the future of the Company, we also wanted to clarify a few remaining issues for stockholders. Specifically, neither BVF nor its nominees have any financial interest or other stake in MediciNova or its proposed transaction. Our only concern is for the fair valuation and prevention of lost value of Avigen. Our interest in Avigen is solely as stockholders - we have never sought, nor would we accept, any benefit solely for ourselves. In addition, in the event they are elected to the Board, our nominees will not receive any compensation for their services as directors of Avigen, other than Mr. Coppedge who stands to receive only nominal director fees. We encourage stockholders to act now to protect their investment by voting the GOLD proxy card today."
