Provectus Pharmaceuticals, a biotech company developing oncology and dermatology drugs, has inked a $1 million investment from Chicago-based Lincoln Park Capital Fund. As part of the deal, Lincoln Park committed to invest up to $30 million more in equity capital. Provectus is traded on the over-the-counter Bulletin Board.
Provectus Pharmaceuticals, Inc. (OTC BB: PVCT), a development-stage oncology and dermatology biopharmaceutical company, announced that on December 23, 2010 it entered into a purchase agreement with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor, whereby LPC has invested $1 million at a premium to the market and committed to invest, at Provectus’ (“the Company”) sole discretion, up to an additional $30 million of equity capital.
“This commitment increases our flexibility to strategically develop PV-10 and PH-10 as we continue potential partnership discussions. We welcome Lincoln Park Capital as an institutional investor in the Company.”
Upon signing the agreement, LPC invested $1 million in Provectus as an initial purchase of 1 million shares of the Company’s common stock at $1.00 per share, a 9.8% premium over the prior day’s closing price, together with warrants to purchase 500,000 shares of the Company’s common stock at an exercise price of $1.50 per share. In addition to the foregoing investment the Company, at its sole discretion, has the right to direct LPC to purchase up to an additional $30 million of the Company’s common stock. The Company will control the timing and amount of any future investment, and LPC is obligated to make purchases, if and when the Company decides.
The agreement may be terminated by the Company at any time, at its sole discretion, without any cost or penalty. The net proceeds from this investment will be used for general corporate purposes.
“We are pleased to have signed a purchase agreement with Lincoln Park Capital,” said Craig Dees, Ph.D., CEO of Provectus. “This commitment increases our flexibility to strategically develop PV-10 and PH-10 as we continue potential partnership discussions. We welcome Lincoln Park Capital as an institutional investor in the Company.”
A more detailed description of the agreement is set forth in the Company’s Current Report on Form 8-K filed with the SEC on December 23, 2010, which the Company encourages readers to review.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in this offering, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under securities laws of any such jurisdiction.
About Lincoln Park Capital (“LPC”)
LPC is an institutional investor headquartered in Chicago, Illinois. LPC’s experienced professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, energy and technology. LPC’s investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital offering companies certainty, flexibility and consistency. For more information, visit www.LincolnParkCapital.com.
About Provectus Pharmaceuticals, Inc. (www.pvct.com)
Provectus Pharmaceuticals specializes in developing oncology and dermatology therapies. Its novel oncology drug PV-10 is designed to selectively target and destroy cancer cells without harming surrounding healthy tissue, significantly reducing systemic side effects. Its oncology focus is on melanoma, breast cancer and metastatic cancers of the liver. The Company has received orphan drug designation from the FDA for its melanoma indication. Its dermatological drug PH-10 also targets abnormal or diseased cells, with the current focus on psoriasis and atopic dermatitis. Provectus has recently completed its Phase 2 trials of PV-10 as a therapy for metastatic melanoma, and of PH-10 as a topical treatment for atopic dermatitis and psoriasis. Information about these and the Company’s other clinical trials can be found at the NIH registry, www.clinicaltrials.gov. For additional information about Provectus please visit the Company’s website at www.pvct.com or contact Porter, LeVay & Rose, Inc.