Macrophage Therapeutics, a Subsidiary of Navidea Biopharmaceuticals, Executes Securities Purchase Agreement for $2.5 Million ...
14 March 2015 - 6:29AM
Business Wire
Macrophage Therapeutics, Inc., a subsidiary of Navidea
Biopharmaceuticals, Inc. (NYSE MKT: NAVB), today announced
definitive agreements have been executed for its previously
announced $2.5 million round of standalone financing and the
funding process is underway. The proceeds will be used for pipeline
development, general working capital and recruitment of a
scientific advisory board that will counsel and recommend the
initial therapeutic applications of Navidea’s Manocept™ platform
technology.
“This financing provides the capital that enables us to work
with some of the best scientific and medical experts in macrophage
mediated-diseases and to prioritize and more aggressively advance
important therapeutic applications with the Manocept platform,”
stated Michael Goldberg, M.D., Macrophage Therapeutics Chief
Executive Officer. “These funds will allow us to generate
additional foundational data and secure the relevant intellectual
property so we can establish the partnerships necessary to advance
the large number of potential therapeutics expeditiously.”
The transaction was led by Platinum-Montaur Life Sciences and
Dr. Goldberg. The first draw of $500,000 has been initiated. Should
the entire $2.5 million be funded, there will be issued and
outstanding a total of 50 shares of preferred stock and warrants to
purchase 1,500 shares of common stock, representing a 1% interest
in Macrophage Therapeutics on a fully converted and exercised
basis. In the event that Macrophage Therapeutics has not completed
a public offering of in excess of $50 million by March 11, 2017,
each share of preferred stock in Macrophage Therapeutics will
become exchangeable for common stock of Navidea based on the stock
price of Navidea at 80% of the then-current volume weighted average
price per share of Navidea stock, but not less than $3. If the
investors do not timely exercise their exchange option, Macrophage
Therapeutics can redeem the preferred stock for a price equal to
1.1664 times the initial issue price. Based on the expected
enterprise valuation of $500 million, shareholders of Navidea will
retain 99.0% ownership of Macrophage Therapeutics assuming full
conversion of the preferred stock and exercise of the warrants.
“This funding will put us in a favorable position to more
rapidly drive the Manocept platform towards its ultimate value,
while ensuring that existing Navidea shareholders retain the vast
majority of the ownership,” said Rick Gonzalez, Navidea Chief
Executive Officer. “We believe the work being done with the
Manocept technology opens the door to important new diagnostic
opportunities for Navidea as well as therapeutics to be developed
by Macrophage Therapeutics.”
About Macrophage TherapeuticsMacrophage Therapeutics, a
newly created subsidiary of Navidea Biopharmaceuticals, Inc.
(NAVB), is developing therapeutics using the patented Manocept
immunotherapy platform licensed from Navidea to target over-active
macrophages implicated in cancer, cardiovascular, central nervous
system, autoimmune, antiviral, and skin diseases. Manocept
specifically targets CD206, or mannose receptor prevalent on
over-active macrophages. The technology enables highly specific
targeted delivery of active (either existing or yet to be
developed) agents that can modulate the activity of over-active
macrophages that have been implicated in many diseases. Targeted
delivery should significantly enhance a given compound’s efficacy
and safety.
About Navidea Biopharmaceuticals Inc.Navidea
Biopharmaceuticals, Inc. (NYSE MKT: NAVB) is a commercial stage
precision medicine company focused on the development and
commercialization of precision diagnostics, therapeutics and
radiopharmaceutical agents. Navidea is developing multiple
precision-targeted products and platforms including Manocept™,
NAV4694, and NAV5001, to help identify the sites and pathways of
undetected disease and enable better diagnostic accuracy, clinical
decision-making, targeted treatment and, ultimately, patient care.
Lymphoseek® (technetium Tc 99m
tilmanocept) injection, Navidea’s first commercial product from the
Manocept platform, was approved by the FDA in March 2013 and by the
EMA in November 2014. Navidea’s strategy is to deliver superior
growth and shareholder return by bringing to market novel
radiopharmaceutical agents and therapeutics, and advancing the
Company’s pipeline through global partnering and commercialization
efforts. For more information, please visit www.navidea.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.
Macrophage Therapeutics, Inc.Michael M. Goldberg, M.D.,
201-608-5218orNavidea BiopharmaceuticalsBrent Larson,
614-822-2330Executive VP & CFOorSharon Correia,
978-655-2686Associate Director, Corporate Communications
Navidea Biopharmaceuticals (AMEX:NAVB)
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