Money will be used to develop mid-stage candidates in oncology and dermatology.
Provectus Pharmaceuticals says that it inked a purchase agreement with Lincoln Park Capital Fund (LPC) whereby LPC invested $1 million at a premium to the market. Additionally, LPC committed to invest, at Provectus’ sole discretion, up to an additional $30 million of equity capital.
The $1 million investment was made through the purchase of 1 million shares for $1 each, a 9% premium over the closing price of $0.91 on December 22, the last trading day before the transaction. LPC also bought warrants to purchase 500,000 shares of the company’s common stock at an exercise price of $1.50 per share.
“This commitment increases our flexibility to strategically develop PV-10 and PH-10 as we continue potential partnership discussions,” notes Craig Dees, Ph.D., CEO of Provectus. PV-10 is designed to selectively target and destroy cancer cells without harming surrounding healthy tissue, the company explains.
The company received orphan drug designation from the FDA for its melanoma indication in which a Phase II study was completed in May. PV-10 also completed a Phase I breast cancer trial in July 2008 and entered a metastatic liver cancer Phase I study in October 2009.
PH-10 also targets abnormal or diseased cells and is in mid-stage development as a treatment for psoriasis and atopic dermatitis. A Phase IIc randomized study in psoriasis was initiated in December, and a Phase II trial in atopic dermatitis was completed in September 2009.