Immunotherapeutics company Navidea Biopharmaceuticals Inc (NYSE American:NAVB) stated on Friday that two investors plan to purchase approximately 4.0 million shares of common stock, par value USD0.001 per share, from the company.

The company said it will raise aggregate gross proceeds of approximately USD3.4m under the private placement with the investors.

Upon issue, the securities will represent approximately 16.5% of the company's outstanding common stock.

Pursuant to a binding term sheet, the company will sell the judgment entered by the Ohio Court of Common Pleas in its favor of USD4.3m plus interest for USD4.2m of proceeds. It has the option, within 45 days of the sale, to repurchase the judgment for a 10% premium in the form of its common stock at a 10% discount to the then-current market price.

Net proceeds may be used by the company to fund its research and development programmes of its two Phase 2b and Phase 3 clinical trials of Tc99m tilmanocept in patients with rheumatoid arthritis, general working capital purposes as well as other operating expenses.