Macrophage Therapeutics, a Subsidiary of Navidea Biopharmaceuticals, Executes Securities Purchase Agreement for $2.5 Million Financing and Receives Initial Funding
DUBLIN, Ohio--(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 Therapeutics
Macrophage 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., 201-608-5218
Brent Larson, 614-822-2330
Executive VP & CFO
Sharon Correia, 978-655-2686
Associate Director, Corporate Communications
Source: Navidea Biopharmaceuticals, Inc.
Released March 13, 2015