GAITHERSBURG, Md., Aug. 27 /PRNewswire-FirstCall/ -- GenVec, Inc. announced today that it has entered into a purchase agreement with a single institutional investor for the sale of 8,000,000 shares of its common stock and warrants to purchase 4,000,000 shares of its common stock. The shares of common stock and warrants are being offered in units consisting of one share of common stock and 0.50 warrants to purchase one share of common stock at a price of $0.75 per unit. This represents a discount of approximately 8.3% to the closing price of GenVec common stock on August 26, 2009. The warrants have a term of five years and an exercise price of $0.828 per share.
The gross proceeds of the offering are expected to be approximately $6.0 million and net proceeds, after deducting the placement agent’s fee and estimated offering expenses payable by GenVec, are expected to be approximately $5.6 million. Merriman Curhan Ford acted as exclusive placement agent in this transaction.
The securities described above are being offered by GenVec pursuant to a registration statement previously filed and declared effective by the Securities and Exchange Commission. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission (SEC). Copies of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained at the SEC’s website at www.sec.gov or from Merriman Curhan Ford & Co. at 135 East 57th Street, 24th Floor, New York, NY 10022, by calling (646) 292-1425 or by emailing ahudspeth@mcfco.com. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of our common stock. No offer, solicitation, or sale will be made in any jurisdiction in which such offer, solicitation, or sale is unlawful.
About GenVec
GenVec, Inc. is a biopharmaceutical company developing novel therapeutic drugs and vaccines. GenVec’s lead product, TNFerade(TM), is currently in a pivotal clinical study (PACT) in locally advanced pancreatic cancer. TNFerade has also been and is currently being evaluated for its potential use in the treatment of several other cancers, including esophageal cancer, rectal cancer, and head and neck cancer. GenVec also uses its proprietary adenovector technology to develop vaccines for infectious diseases including HIV, malaria, foot-and-mouth disease, respiratory syncytial virus (RSV), and HSV-2. Additional information about GenVec is available at www.genvec.com and in the company’s various filings with the Securities and Exchange Commission.
SOURCE GenVec, Inc.
CONTACT: Danielle M. DiPirro, Corporate Communications Specialist of
GenVec, +1-301-944-1877, ddipirro@genvec.com
Web site: http://www.genvec.com/
