Virogen Inc, a holding company specialising in data security and encryption technology, is in discussions with a European hedge fund to secure long term financing for the commercialisation of its products and services worldwide.
Negotiations are ongoing in the development of a term sheet; however, the general parameters of the financing package have been discussed and agreed to in principal by both parties. Virogen will use the proceeds from this financing to assist the company in its worldwide expansion and acquisition of contracts that the company believes can generate millions in revenue. Management believes that multinational corporations and governments worldwide are looking for and willing to pay for innovative security solutions to address the epidemic of data breaches.
Virogen’s Chief Executive Officer, Paul Hogan, says: "Securing financing is very important for the company in order to execute our worldwide growth strategy. While the US market remains the company’s primary focus and funds will be used for expansion in the US as well as international markets, it is clear that there is growing concern particularly in Europe and Asia regarding network security. Indeed one could argue there is greater opportunity in these markets given the expanded emphasis.
"For this reason, the company’s growth strategy has a heavy concentration in Europe and we have plans to market our data security and encryption technology in the Asian markets as well. We believe that this financing will play a key role in enabling the company to achieve potentially millions of dollars in revenue in the future."
