Neoprobe Corp. has raised $6.6 million in a private placementof equity securities consisting of a sale of 550,000 units at $12per unit. Each unit consists of two shares of common stock andone Series E warrant (NASDAQ:NEOP;NEOPW).

The warrants, which are callable by Neoprobe, entitle theholder to purchase a common share of Neoprobe at $6.50 pershare until Nov. 10, 1996. At $12 per unit, the placement waspriced at a 9 percent discount to the $5.75 trading price pershare on Nov. 19, the date of the transaction's closing. However,a company spokesperson said that compared to Tuesday'sclosing price of $5.38 there was no discount. The total numberof shares outstanding is now 8.1 million.

The warrants are exercisable at a 13 percent premium to thecommon share price on the closing date. Neoprobe said it hasgranted the purchasers of the units registration rights. Theunderwriter for the placement was D. Blech & Company Inc.Investors included Westfield Capital Management of Bostonand the directors, officers and others affiliated with Neoprobe,which collectively subscribed for more than half of the offering.

Neoprobe's offering was one of two private placementsannounced on Tuesday, along with T Cell Sciences' $18 millionplacement. An initial public offering and two secondaryofferings were also announced Tuesday, proof that investorsremain committed to the biotech industry. (See other storiestoday.)

The last time Columbus, Ohio-based Neoprobe raised moneywas through its initial public offering of November 1992. Atthat time it grossed $10.4 million from the sale of 1.7 millionunits at $6 per unit. The company's current cash resources arenow approximately $13 million. With a burn rate of $2 millionper quarter, the company has almost two years worth offinancing, assuming Neoprobe does not form a strategicpartnership and get an additional influx of cash.

Neoprobe said proceeds from the placement will be usedprimarily to complete testing and commercialization of itscolorectal cancer detection drug, RIGScan CR49, which iscurrently in Phase III testing.

-- Brenda Sandburg News Editor

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