Radiopharmaceutical developer Navidea Biopharmaceuticals announced that it has raised funds totaling $7.6 million from two transactions. At the same time, the company announced that it was back in compliance with listing standards on the NYSE American Stock Exchange.
Navidea will collect aggregate gross proceeds of $3.4 million in exchange for selling about 4 million shares of its stock to investor John K. Scott, Jr. The securities will represent approximately 16.5% of the company's outstanding common stock after the issuance.
Also, Navidea has agreed to sell the $4.3 million plus interest judgment entered by the Ohio Court of Common Pleas in its favor. The radiopharmaceutical developer will receive $4.2 million and has the option of buying back the judgment for a 10% premium within 45 days of the sale, according to the company.
The company plans to use the money from these transactions to fund its research and development programs, including continued advancement in the phases of its clinical trials for technetium-99m tilmanocept in patients with rheumatoid arthritis. Funds also will be used for general working capital purposes and other operating expenses.
The transactions had an additional benefit: The company reported that thanks to the funds, the firm has regained its compliance with NYSE American listing standards. The company had received a notice in August 2018 that it was not in compliance with the exchange's listing standards. The company had until February 14 to regain compliance or the exchange would begin delisting procedures.
