Radiopharmaceutical developer Navidea Biopharmaceuticals plans to sell $3 million in stock to an existing investor as the company works to regain compliance with stock exchange listing standards through a reverse stock split.
Navidea said it had executed a stock purchase agreement with John K. Scott Jr. in which he would buy up to $3 million in shares of the company in multiple tranches. An initial purchase of $50,000 at a price of 14¢ a share closed on March 22.
In other news, Navidea said it continues to work toward achieving compliance with listing requirements of the NYSE American stock exchange through a reverse stock split. NYSE American initially gave the company until March 31 to complete the split, but Navidea said it is in discussions with the exchange to complete the transaction after that date.
On March 15, Navidea filed its annual Form 10-K report for 2018 with the U.S. Securities and Exchange Commission, which contained a statement from the company's accounting firm indicating "substantial doubt about our ability to continue as a going concern over the next 12 months." Navidea's future prospects depend on the company's ability to raise capital or issue debt or equity security to investors, license or sell its product candidates to other pharmaceutical companies, and generate revenue from developed products, it said.
