Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v2.4.0.6
Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events
13. Subsequent Events

 

a. Credit Facility: In July 2012, we entered into an agreement with Platinum-Montaur Life Sciences, LLC (Montaur) to provide us with a credit facility of up to $50 million. Under the terms of the agreement, Montaur committed to extend up to $15 million in debt, which is available immediately, to the Company at a prime-based interest rate currently at approximately 10% per annum. Montaur has committed an additional $20 million upon FDA approval of Lymphoseek on consistent terms, with another $15 million potentially available on terms to be negotiated. No conversion features or warrants are associated with the facility.

 

b. Preferred Stock Conversion: Also in July 2012, Montaur converted 3,063 shares of their Series B Convertible Preferred Stock into 10,016,010 shares of our common stock under the terms of the Series B Convertible Preferred Stock.

 

c. License Agreement: On July 31, 2012, we entered into an agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection (CFT), an Iodine-123 radiolabeled imaging agent being developed as an aid in the diagnosis of Parkinson’s disease and other movement disorders, with a potential use as a diagnostic aid in dementia. Under the terms of the license agreement, Alseres granted Navidea an exclusive, worldwide sub-license to research, develop and commercialize CFT. The final terms of the agreement require Navidea to make a one-time sub-license execution payment to Alseres equal to (i) $175,000 in cash and (ii) 300,000 shares of our common stock.

 

The license agreement also provides for contingent milestone payments of up to $2.9 million, $2.5 million of which will principally occur at the time of product registration or upon commercial sales, and the issuance of up to an additional 1.15 million shares of Navidea common stock, 950,000 shares of which are issuable at the time of product registration or upon commercial sales. In addition, the license terms anticipate royalties on annual net sales of the approved product which are consistent with industry-standard terms and certain license extension fees, payable in cash and shares of common stock, in the event certain diligence milestones are not met.