Neoprobe Secures $10 Million in Debt Financing from Hercules
January 04 2012 - 4:17PM
Business Wire
Neoprobe Corporation (NYSE Amex: NEOP) today announced that
Hercules Technology II, L.P, a fund managed by Hercules Technology
Growth Capital, Inc. (Nasdaq: HTGC), will provide up to a total of
$10 million in debt financing to Neoprobe. Hercules is a leading
specialty finance company providing technology and life sciences
companies with debt and equity growth capital.
"The successful arrangement of this financing bolsters our cash
position with limited potential dilution as we close in on a number
of important near-term milestones," stated Brent Larson, Senior
Vice President and CFO of Neoprobe. "We are pleased to have the
support and confidence of a leading technology and life sciences
investor like Hercules as we continue to execute on our business
plan objectives. This funding further strengthens our already solid
balance sheet and provides us with the flexibility to consider
additional product acquisition and partnership opportunities.”
"We appreciate the opportunity to contribute to Neoprobe’s
growth. The company has achieved many significant milestones in
building a pipeline of precision radiopharmaceutical diagnostic
candidates," said Chad Norman, Managing Director at Hercules.
"Currently, the Company has three drug candidates in late-stage
development – Lymphoseek®, a receptor-based lymphatic tissue
targeting agent, RIGScanTM, a tumor-specific targeting agent for
the treatment of colorectal cancer and AZD4694, a Fluorine-18
labeled agent for use in the imaging and evaluation of patients
with signs or symptoms of cognitive impairment such as Alzheimer’s
disease. We are confident that Neoprobe’s strong management team
will be able to seize on the considerable market opportunity for
these promising product candidates.”
The first funding of $7 million which closed on December 29,
2011 is in the form of a secured note which is repayable in
installments over thirty months following an interest-only period
of between six to twelve months. The note bears interest at a
prime-based variable rate, currently at 10%. Up to $1.5 million of
the principal of the note is convertible at the option of Neoprobe,
and up to $1.5 million of principal is convertible at the option of
Hercules, each at a conversion price of $2.77 per share. In
addition, Neoprobe issued Hercules 333,333 warrants to purchase
shares of Neoprobe common stock at an exercise price of $2.10 per
share. A second funding of $3 million is available upon the receipt
by Neoprobe of clearance to market Lymphoseek in the U.S.
About Neoprobe
Neoprobe Corporation (NYSE Amex: NEOP) is a biomedical company
focused on the development and commercialization of precision
diagnostics and radiopharmaceutical agents. Neoprobe is actively
developing three radiopharmaceutical agent platforms – Lymphoseek®,
AZD4694 and RIGScanTM – to help identify the presence and status of
undetected disease and enable better diagnostic accuracy, clinical
decision-making and ultimately patient care. Neoprobe’s strategy is
to deliver superior growth and shareholder return by bringing to
market novel radiopharmaceutical agents and advancing the Company’s
pipeline through selective acquisitions, global partnering and
commercialization efforts. For more information, please visit
www.neoprobe.com. Effective tomorrow, January 5, 2012, Neoprobe
Corporation’s name will change to Navidea Biopharmaceuticals, Inc.
and its trading symbol will change to NAVB.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital, Inc. is a NASDAQ traded
specialty finance firm providing customized loans to public and
private technology-related companies, including clean technology,
life science and select lower middle market technology companies at
all stages of development. Since its founding in 2003, Hercules has
committed over $2.6 billion in flexible financing solutions to over
180 companies, enabling these companies to maximize their equity by
leveraging these assets. Hercules' strength comes from its deep
understanding of credit and the industries it serves, allowing it
to partner with venture capital and private equity companies for a
less dilutive source of growth capital helping companies to bridge
through their critical stages of growth. Hercules offers a full
suite of growth capital products at all levels of the capital
structure, up to $40 million, lines of credit to term loans. The
company is headquartered in Palo Alto, California and has
additional offices in Massachusetts, Colorado and Virginia.
Providing capital to publicly-traded or privately-held companies
backed by leading venture capital and private equity firms involves
a high degree of credit risk and may result in potential losses of
capital. For more information, please visit www.htgc.com.
The Private Securities Litigation Reform Act of 1995 (the Act)
provides a safe harbor for forward-looking statements made by or on
behalf of the Company. Statements in this news release, which
relate to other than strictly historical facts, such as statements
about the Company’s plans and strategies, expectations for future
financial performance, new and existing products and technologies,
anticipated clinical and regulatory pathways, and markets for the
Company’s products are forward-looking statements within the
meaning of the Act. The words “believe,” “expect,” “anticipate,”
“estimate,” “project,” and similar expressions identify
forward-looking statements that speak only as of the date hereof.
Investors are cautioned that such statements involve risks and
uncertainties that could cause actual results to differ materially
from historical or anticipated results due to many factors
including, but not limited to, the Company’s continuing operating
losses, uncertainty of market acceptance of its products, reliance
on third party manufacturers, accumulated deficit, future capital
needs, uncertainty of capital funding, dependence on limited
product line and distribution channels, competition, limited
marketing and manufacturing experience, risks of development of new
products, regulatory risks and other risks detailed in the
Company’s most recent Annual Report on Form 10-K and other
Securities and Exchange Commission filings. The Company undertakes
no obligation to publicly update or revise any forward-looking
statements.
Neoprobe Corp. Common Stock (AMEX:NEOP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Neoprobe Corp. Common Stock (AMEX:NEOP)
Historical Stock Chart
From Sep 2023 to Sep 2024