Hercules Technology is the investor for variable-rate loan agreement
By Devika Patel
Knoxville, Tenn., Jan. 5 - Navidea Biopharmaceuticals, Inc. negotiated a $10 million loan agreement with Hercules Technology II, LP on Dec. 29, according to an 8-K filed Thursday with the Securities and Exchange Commission. It has already drawn $7 million of the loan at pricing. The second draw of $3 million may be made before June 30.
The loan will bear interest at a rate equal to the greater of Prime plus 675 basis points and 10%. The company may elect to pay up to $1.5 million of the outstanding principal in common stock at an initial price of $2.77 per share.
The investor also received warrants for 333,333 shares, which are each exercisable at $2.10. The strike price reflects a 19.23% discount to the Dec. 28 closing share price of $2.60.
Navidea Biopharmaceuticals, formerly Neoprobe Corp., is a Dublin, Ohio-based biomedical company focused on improving cancer surgery outcomes.
| Issuer: | Navidea Biopharmaceuticals, Inc.
|
| Issue: | Loan
|
| Amount: | $10 million
|
| Coupon: | Greater of Prime plus 675 bps and 10%
|
| Warrants: | For 333,333 shares
|
| Warrant strike price: | $2.10
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| Investor: | Hercules Technology II, LP
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| Pricing date: | Dec. 29
|
| Settlement date: | Dec. 29 (for $7 million), June 30
|
| Stock symbol: | Amex: NEOP
|
| Stock price: | $2.61 at close Dec. 29
|
| Market capitalization: | $258.2 million
|
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