Neoprobe Corp. (OTCBB:NEOP) has raised $6 million by selling 3.2 million shares of its common stock to unidentified institutional investors.
The company priced the sale at $1.90 per share, which represents a discount of about 11 percent from Friday’s closing price.
News of the offering sent Dublin, Ohio-based Neoprobe’s share price tumbling Monday. It was down about 17 percent to $1.77 around mid-day.
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In addition to selling common shares, Neoprobe also issued two series of warrants to investors. If the warrants are exercised, the value of the company’s latest sale would rise to $6.6 million.
The company plans to use the proceeds of the funding for “general corporate purposes,” including research and development, clinical trials and regulatory filings, according to a statement from Neoprobe.
Neoprobe is developing two cancer-detecting drugs — Lymphoseek and RIGScan. Lymphoseek, a tracing agent that identifies cancerous lymph nodes in patients with breast cancer and melanoma, is much farther along and could enter the market next year.
Company executives are scheduled Wednesday afternoon to discuss the latest developments surrounding the two drugs during Neoprobe’s third-quarter conference call (pdf).
