NEW YORK, Dec. 6, 2013 (GLOBE NEWSWIRE) -- Tauriga Sciences, Inc. (OTCQB:TAUG) ("Tauriga" or the "Company"), a diversified company focused on generating profitable revenues through license agreements and the development of a proprietary technology platform in the nanorobotics space, has today announced it has successfully retired the outstanding $281,250 USD senior convertible note ("the note") issued to MAGNA Group LLC ("MAGNA") affiliate fund Hanover Holdings I, LLC ("Hanover I"). On May 23, 2013 the Company previously announced the completion of a $225,000 USD financing through a senior convertible note issued to a MAGNA Group LLC affiliate fund, Hanover Holdings I, LLC (the "Investor"), headquartered in New York, NY.
The note had an eight-month term and was issued with an initial principal amount of $337,500 for a purchase price of $225,000 (a 33.33% original issue discount). Under terms of the note, the initial principal amount of $337,500 was reduced to the purchase price of $281,250 since the Company met all of their filing obligations as detailed in the corresponding Form 8-K filing. However including the one achieved Original Issue Discount ("OID") and accrued interest, the ultimate value of the note was calculated as $281,250 USD. The note accrued interest at a rate of 12% per annum and included customary event of default provisions.
The Company still has, intact, an active $5,000,000 Equity Enhancement Program ("EEP") with MAGNA Group which allows, but DOES NOT OBLIGATE, the Company to issue and sell up to $5 million of shares of common stock to the Investor as needed over a 36-month period (July 31, 2013 - July 30, 2016). The EEP has been a viable financing instrument for Tauriga since July 31, 2013 as the Company's Registration Statement on Form S-1 was declared effective as of 9:00 am EDT on July 31, 2013 (the "Registration Statement"). To this date the Company has utilized the EEP instrument just once, in early September 2013, from which it netted approximately $22,000 USD. The Company does not plan on raising any additional capital through this EEP due to the potential market overhang created by the corresponding put notices. However the existence and effectiveness of this EEP instrument does have a positive aspect, as it provides the Company with a legitimate future safety net.
Tauriga's CEO, Seth M. Shaw stated, "The $225,000 USD capital infusion by MAGNA on May 23, 2013 was crucial at that time and in all likelihood saved the company. Tauriga and its management team deeply appreciate MAGNA and its affiliates for showing confidence in the Company during a very difficult and uncertain period. Over the past 6 months the Company has vastly improved its fundamentals and future prospects and is pleased to have been in a position to fully repay and retire this convertible debenture. The Company is working extremely hard on completing its recently announced acquisition of Pilus Energy LLC and there has been substantial progress made to that end."
On November 25, 2013, the Company signed a definitive agreement to acquire Cincinnati, Ohio based Pilus Energy LLC ("Pilus Energy"), a developer of alternative cleantech energy platforms using proprietary microbial solutions that creates electricity while consuming polluting molecules from wastewater. Upon consummation of the proposed reverse merger, which has been unanimously ratified by Tauriga's board of directors, Pilus Energy will become a wholly-owned subsidiary of Tauriga.
About Tauriga Sciences, Inc.:
Tauriga Sciences, Inc. (TAUG) is a diversified company focused on generating profitable revenues through license agreements and the development of a proprietary technology platform in the nano-robotics space. The mission of the Company is to acquire and build a diversified portfolio of cutting edge technology assets that is capital efficient and of significant value to the shareholders. The Company's business model includes the acquisition of licenses, equity stakes, rights on both an exclusive and non-exclusive basis, and entire businesses. Management is firmly committed to building lasting shareholder value in the short, intermediate, and long terms. The Company's new corporate website can be found at (www.tauriga.com).
About Pilus Energy LLC
A developer of alternative cleantech energy solutions, Pilus Energy is developing microbial solutions that clean polluting molecules from wastewater. In the process, the technology generates electricity and produces economically important gases and chemicals. Pilus Energy licenses a low-cost, scalable electrogenic bioreactor platform and wastewater-to-value BactoBots. Pilus Energy will also derive additional revenues from carbon and renewable energy credits (REC). For more information, please visit Pilus Energy's web site, (www.pilusenergy.com).
DISCLAIMER:
Forward-Looking Statements: Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on TAUG's predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors over which TAUG has little or no control. Such forward-looking statements are made only as of the date of this release, and TAUG assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in documents filed from time to time by TAUG with the Securities and Exchange Commission. This press release does not and shall not constitute an offer to sell or the solicitation of any offer to buy any of the securities, nor shall there be any sale of the securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Securities Act and applicable state securities laws.