Neoprobe to receive $13 million financing from Montaur

The first funding under the securities purchase agreement between Neoprobe and Montaur is for $7 million, which will be used to repay in full $5.7 million in notes that were due in January 2009. In addition, funding from the first closing will retire 10,125,000 in warrants to purchase shares of Neoprobe common stock that were associated with the notes due in 2009. Montaur has committed to additional funding aggregating $6 million that will be used to support the development of Lymphoseek.

The first funding of $7 million is in the form of a secured note which is due in December 2011. A second funding of $3 million will occur upon the commencement of the Phase III clinical studies of Lymphoseek. The second funding will be in the form of a secured note payable in December 2011. Finally, a third funding of $3 million will occur upon the completion of the enrollment of 200 evaluable patients in the Phase III clinical studies of Lymphoseek. The third funding will be in the form of convertible preferred stock of Neoprobe.

David Bupp, president and CEO of Neoprobe, said: “We are very pleased to complete the financing with Montaur, which provides us with the financial resources to complete the clinical and other development activities associated with Lymphoseek.”