Neoprobe Corporation (NYSE Amex: NEOP) today announced that Hercules Technology II, L.P, a fund managed by Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC), will provide up to a total of $10 million in debt financing to Neoprobe. Hercules is a leading specialty finance company providing technology and life sciences companies with debt and equity growth capital. "The successful arrangement of this financing bolsters our cash position with limited potential dilution as we close in on a number of important near-term milestones," stated Brent Larson, Senior Vice President and CFO of Neoprobe. "We are pleased to have the support and confidence of a leading technology and life sciences investor like Hercules as we continue to execute on our business plan objectives. This funding further strengthens our already solid balance sheet and provides us with the flexibility to consider additional product acquisition and partnership opportunities.” "We appreciate the opportunity to contribute to Neoprobe’s growth. The company has achieved many significant milestones in building a pipeline of precision radiopharmaceutical diagnostic candidates," said Chad Norman, Managing Director at Hercules. "Currently, the Company has three drug candidates in late-stage development – Lymphoseek ®, a receptor-based lymphatic tissue targeting agent, RIGScan TM, a tumor-specific targeting agent for the treatment of colorectal cancer and AZD4694, a Fluorine-18 labeled agent for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer’s disease. We are confident that Neoprobe’s strong management team will be able to seize on the considerable market opportunity for these promising product candidates.” The first funding of $7 million which closed on December 29, 2011 is in the form of a secured note which is repayable in installments over thirty months following an interest-only period of between six to twelve months. The note bears interest at a prime-based variable rate, currently at 10%. Up to $1.5 million of the principal of the note is convertible at the option of Neoprobe, and up to $1.5 million of principal is convertible at the option of Hercules, each at a conversion price of $2.77 per share. In addition, Neoprobe issued Hercules 333,333 warrants to purchase shares of Neoprobe common stock at an exercise price of $2.10 per share. A second funding of $3 million is available upon the receipt by Neoprobe of clearance to market Lymphoseek in the U.S.
Shares of Neoprobe Corporation (AMEX:NEOP) were gapping up Thursday morning with an open price 17.9% higher than Wednesday's closing price. The stock closed at $2.63 yesterday and opened today's trading at $3.10.