Navidea Biopharmaceuticals Inc. has executed agreements with two existing investors, including John K. Scott Jr., to purchase approximately 4 million shares of the company’s common stock for approximately $3.4 million. The securities to be issued to the investors will represent approximately 16.5 percent of the company’s outstanding common stock after such issuance.
The Dublin company, focused on the development of precision immunodiagnostic agents and immunotherapeutics, also executed a binding term sheet to sell the judgment entered by the Ohio Court of Common Pleas in favor of Navidea in the amount of $4.3 million plus interest, for $4.2 million.
Navidea intends to use the proceeds to fund its R&D programs, including continued advancement its two 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.
“This financing allows Navidea to advance through several key milestones and maintain our NYSE listing,” Navidea CEO Jed Latkin said, in a statement. “We’re pleased to continue to receive support from current shareholders and look forward to providing updates as the company moves ahead. Navidea is encouraged with the clinical study results announced in the fourth quarter, and we will provide further update on the third cohort as the data is finalized.”