Navidea Biopharmaceuticals Inc., a Dublin-based company focused on the development of precision immunodiagnostic agents and immunotherapeutics, has executed agreements with five investors, including an existing investor, John K. Scott Jr., to purchase approximately 2.1 million shares of the company’s common stock, for $0.001 per share, in a private placement for approximately $1.9 million. Navidea intends to use the proceeds to fund its R&D programs, including continuing to advance its Phase 2b and Phase 3 clinical trials of Tc99m tilmanocept in patients with rheumatoid arthritis, and for general working capital purposes and other operating expenses.
The securities to be issued to the investors represent approximately 9.3 percent of the company’s outstanding common stock.
Other investors are Hercules Capital out of Palo Alto, California, and Medica Venture Partners out of Israel, according to PitchBook.
“This additional investment in Navidea demonstrates our family’s continued commitment to Navidea and our confidence in the long-term vision of its current board and management,” Scott said, in a statement. “It is very encouraging to us as shareholders to have these additional long-term investors co-investing and supporting the company. This private placement will help Navidea to continue on the path towards obtaining approval for its rheumatoid arthritis diagnostic product.”
“We are very happy that a group of existing long-term shareholders continues to show faith in the potential of Navidea as well as the continued success of its ongoing RA trials,” Navidea CEO Jed A. Latkin commented. “The ability to quickly raise $1.9 million without having to pay any fees, give any warrants and at market price was an opportunity that the company could not pass up. It also gives the company additional runway to allow for several key milestones that we anticipate in the next few months.”
While Navidea expects to close the private placement within the next week, the closing of approximately 900,000 of the private placement shares is conditioned upon SEC approval.