Unlocking Potential: Navidea Biopharmaceuticals and CRG Settle Ongoing Litigation

Navidea Biopharmaceuticals, Inc. and Capital Royalty Partners II, L.P. have recently reached a significant milestone in their legal dispute. The binding settlement agreement and mutual release settle all ongoing litigation between the two parties, including the pending appeal. This development is a positive step forward for Navidea as it aligns with the company's approach and allows them to focus on advancing their innovative technology to the market.

The litigation between Navidea and CRG has been ongoing since 2016, with a judgment entered against Navidea in August 2022. The settlement agreement resolves the judgment and clears a substantial financial burden for Navidea. As of September 2023, the contingent liability for the judgment was $2,711,806, which will now be resolved through the settlement.

Navidea's Chief Financial Officer, Craig A. Dais, expressed his satisfaction with the settlement. He highlighted that it relieves the company of a significant financial burden and eliminates ongoing legal costs and management burdens associated with the litigation. The settlement also improves Navidea's balance sheet and clears a substantial impediment to future strategic transactions and partnerships. Dais further emphasized the support of Navidea's Vice Chairman and principal stockholder, Mr. Scott, who played a crucial role in making this settlement possible through additional funding and the restructuring of equity holdings.

To facilitate the CRG settlement, Navidea entered into a Loan and Securities Exchange agreement with John K. Scott, Jr., Vice Chair of the Company's Board of Directors. Under this agreement, Mr. Scott loaned Navidea $750,000, which will be repaid by April 10, 2025. The Loan Agreement also involves the restructuring of an existing note, forgiveness of $100,000 in principal, and the transfer of preferred stock shares. Additionally, Mr. Scott has agreed to release the Company from its obligation to pay all accrued cash directors' fees owed to him.

The settlement not only resolves the immediate financial burden for Navidea but also simplifies the company's equity structure. This provides opportunities for future financings and offers additional flexibility to preserve the Company's substantial net operating losses (NOLs). Navidea's overall strategy, known as "Fix, Fund, Propel," gains further momentum with this settlement, thanks to the continued support of Mr. Scott.

Navidea Biopharmaceuticals, Inc. is a biopharmaceutical company focused on the development of precision immunodiagnostic agents and immunotherapeutics. The company aims to enhance patient care by identifying disease sites and pathways, enabling better diagnostic accuracy, clinical decision-making, and targeted treatment. Navidea's Manocept platform, which targets the CD206 mannose receptor expressed on activated macrophages, forms the basis of their precision-targeted products. Their first product, Tc99m tilmanocept, has been developed and commercialized based on this platform. Navidea's growth strategy involves bringing novel products to market and advancing their pipeline through global partnering and commercialization efforts.

In conclusion, the settlement agreement between Navidea Biopharmaceuticals and Capital Royalty Partners II, L.P. marks a significant milestone for Navidea. This resolution of ongoing litigation allows the company to focus on advancing their innovative technology and driving their organization forward. With the removal of financial burdens and legal costs, Navidea is well-positioned to pursue strategic transactions and partnerships and further establish itself in the biopharmaceutical industry.