DUBLIN, Ohio--(BUSINESS WIRE)--Neoprobe Corporation (OTCBB:NEOP), a diversified developer of innovative oncology and cardiovascular surgical and diagnostic products, today announced that it had completed negotiations for the elimination of certain note covenants and the modification of the maturity of the notes with Great Point Partners LLC,(“Great Point”) the holder of $8.0 million in secured notes that were originally due on December 13, 2008. Great Point has agreed to eliminate the revenue and cash covenants that were in the original notes through the remaining term of the notes. In exchange for the elimination of the note covenants, Great Point will receive an increased annual interest rate of 12%. Under the terms of the amended agreement, Neoprobe gains the option of repaying the notes early without penalty but will be required to pay a portion of proceeds from certain transactions, such as equity raises, to the note holders. Great Point will retain the option to convert its notes into Neoprobe common shares at a fixed conversion price of $0.40 per share but has waived anti-dilution rights under the notes. Additionally, the parties agreed to modify the repayment schedule to include periodic repayments over the course of 2007 and 2008, and to extend the final maturity of the notes to January 7, 2009.
