NEOP First quarter 2005NEOP..53
DUBLIN, Ohio--(BUSINESS WIRE)--Dec. 14, 2004--
Neoprobe Corporation (OTCBB:NEOP), a diversified
developer of innovative oncology and cardiovascular surgical and
diagnostic products, today announced that it raised $8.1 million
through the issuance of $8 million and $100,000 in four-year,
convertible promissory notes to funds of Great Point Partners, LLC and
David C. Bupp (Neoprobe's President and CEO), respectively. The notes
will bear interest at 8% per annum and are freely convertible into
shares of the company's common stock at a price of $0.40 per share.
The conversion price represents the 10-day volume weighted average
trading price of the company's common stock through December 10, 2004.
As part of this transaction, Neoprobe issued five-year warrants to the
investors to purchase 10,125,000 shares of the Company's common stock
at an exercise price of $0.46. The Company may force conversion of the
note prior to its stated maturity under certain circumstances.
Specific details of this transaction may be found in the Company's
Form 8-K to be filed with the Securities and Exchange Commission on or
about December 16, 2004. Proceeds from the note will be used primarily
to fund late-stage clinical development of the Company's most advanced
radiopharmaceutical agent, Lymphoseek(TM), for the assessment of the
spread of breast cancer and melanoma to the lymphatic system and to
complete the commercial launch of the company's blood flow measurement
products, the Quantix/OR(TM) and the Quantix/ND(TM).
David Kroin, Managing Director of Great Point Partners, LLC,
stated, "We are excited to provide this growth financing for Neoprobe
and believe the Company is a uniquely positioned, diversified
biomedical company. The existing gamma device business has tremendous
brand value as evidenced by its continuing profit stream and we expect
that to be enhanced with the blood flow products launch in 2005. In
addition, Lymphoseek and RIGScan(R) have the potential to unlock
significant upside for shareholders. We look forward to working with
and supporting the Neoprobe management team as they execute their
business strategy."
David Bupp commented, "We are very pleased to have an investor of
Great Point's stature become involved with Neoprobe Corporation. The
completion of this financing will provide Neoprobe with the capital
resources to move forward with the clinical development of Lymphoseek
and to execute the commercial introduction of the Quantix products
early next year. In addition, the financing will allow Neoprobe to
devote other resources to prepare for the anticipated commencement of
clinical evaluation activities for RIGScan CR in 2005."
About Neoprobe
Neoprobe develops and provides innovative surgical and diagnostic
products that enhance patient care by meeting the critical decision
making needs of healthcare professionals. Neoprobe currently markets
the neo2000(R) line of gamma detection systems that are widely used by
cancer surgeons for intraoperative lymphatic mapping. Neoprobe is also
in the process of commercializing the Quantix(R) line of blood flow
measurement products developed by its subsidiary, Cardiosonix Ltd.,
that are designed to be used by cardiovascular surgeons, neurosurgeons
and critical care physicians. In addition, Neoprobe holds significant
interests in the development of related biomedical systems and agents
including Lymphoseek(TM) and RIGScan(R) CR. Lymphoseek is an
investigational drug being developed as a lymphatic tracing agent in
conjunction with the University of California, San Diego. The RIGS(R)
system is an investigational technology that combines the Company's
gamma detection device technology with a proprietary disease-specific
radiolabeled cancer targeting agent, and a patented surgical method to
get real-time information to locate tumor deposits that may not be
detectable by conventional methods. Before surgery, a cancer patient
is injected with one of the targeting agents, which circulates
throughout the patient's body and binds specifically to cancer cell
antigens or receptors. Concentrations of the targeting agent are then
located during surgery by the company's gamma-detection instrument,
which emits an audible tone to direct the surgeon to targeted tissue.
The Company's strategy is to deliver superior growth and shareholder
return by maximizing its strong position in gamma detection
technologies and diversifying into new, synergistic biomedical markets
through continued investment and selective acquisitions.
About Great Point LLC
Great Point Partners LLC of Greenwich, Connecticut manages the
Biomedical Value Fund, L.P., a bottoms-up, primary research oriented,
investment fund formed to invest principally in undervalued publicly
traded life sciences, medical technology and other healthcare
companies by purchasing securities in the open market, financing
growth companies through PIPE (Private Investment in Public Equity)
financings, and in other directly negotiated transactions.
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, and markets for the
Company's products, are forward-looking statements. 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 product, 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-KSB and other Securities and Exchange
Commission filings. The Company undertakes no obligation to publicly
update or revise any forward-looking statements.
KEYWORD: NORTH AMERICA OHIO UNITED STATES
INDUSTRY KEYWORD: HEALTH BIOTECHNOLOGY HOSPITALS MEDICAL DEVICES PHARMACEUTICAL
SOURCE: Neoprobe Corporation
