Neoprobe Corporation, a diversified developer of innovative oncology and cardiovascular surgical and diagnostic products, has completed the second closing of $3 million in financing. This funding will help Neoprobe start its Phase 3 clinical studies of Lymphoseek in patients with breast cancer or melanoma and head and neck squamous cell carcinoma.
Montaur issued the funds to Neoprobe in the form of a secured note. The note, which is fully convertible into Neoprobe common shares at $0.36 per share – the closing price of Neoprobe’s common stock on April 10, 2008 when the investment was priced – is repayable in December 2011. In addition, Neoprobe issued Montaur a warrant to purchase up to 8,333,333 shares of Neoprobe common stock at $0.46 per share. Also, as it relates to receiving a final $3 million in funding, Montaur has set a prerequisite for Neoprobe to meet 135 positive lymph nodes in the Phase 3 trial of patients with breast cancer or melanoma.
David Bupp, Neoprobe’s President, said, “The completion of the Montaur financing provides Neoprobe with the financing to initiate the Phase 3 clinical study of Lymphoseek in a timely manner. We expect to begin patient enrollment in the Phase 3 clinical study in patients with breast cancer or melanoma shortly after the FDA-cleared clinical protocol and associated materials receive final clearance from clinical review committees of the investigational sites. The first of the Phase 3 sites have received institutional approvals and we are preparing to commence patient enrollment.”
Michael Goldberg, M.D., Principal, Montaur Capital Partners, LLC and Portfolio Manager of the Platinum Montaur Life Sciences Fund, said, “Neoprobe continues to represent an excellent investment opportunity. We are pleased with their progress since our initial investment and look forward to the successful completion of their pivotal clinical trials.”
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