Cancer diagnostics company Neoprobe (NYSE Amex:NEOP) has avoided a proxy fight with its largest shareholder by coming to an agreement with Platinum Montaur Life Sciences on board nominations.
Platinum last month had threatened Neoprobe with a proxy fight aimed at installing three new directors on the Dublin, Ohio-based company’s board. Now, with Neoprobe agreeing to nominate two of those directors — Peter Drake and Dr. Jess Jones — that threat seems to have passed.
“We are in agreement with the proposed changes and look forward to working cooperatively with Neoprobe,” said Dr. Michael Goldberg of Platinum in a statement from Neoprobe.
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Newly installed Neoprobe CEO Mark Pykett is the third nominee to the company’s board.
As part of the deal, Platinum agreed “not to engage in any independent proxy solicitation activities” related to Neoprobe’s upcoming annual meeting. Platinum said it would vote all of its shares in favor of the board nominees at the meeting.
Drake is the founder of Longevity Growth Partners, a private equity firm focusing on the nutraceutical industry, according to the statement.
Jones is a business development and strategic financing consultant to Cornova, a Massachusetts-based endovascular device developer.
Platinum said last month that it would own 34 percent of Neoprobe’s outstanding common equity if it chose to convert and exercise the warrants and preferred shares it holds.
Pykett said last month that Neoprobe would again delay its FDA application to commercialize its radiopharmaceutical Lymphoseek. The company expects to submit its application for the drug, a tracing agent that helps surgeons identify cancerous lymph nodes in patients with breast cancer or melanoma , in the third quarter.
