May 28, 2009 (FinancialWire) — GenVec, Inc. (NASDAQ: GNVC) (Current Market Cap: US$57.57 Mil.) said that it has entered into a purchase agreement with a single institutional investor for the sale of 9,615,385 shares of its common stock and warrants to purchase 9,615,385 shares of its common stock. GenVac expect to see gross proceeds of around $6 million and net proceeds of around $5.5 million.

The shares of common stock and warrants are being offered in units consisting of one share of common stock and a warrant to purchase one share of common stock at a price of $0.624 per unit. The warrants have a term of five years and an exercise price of $0.858 per share.

GenVec said it will use proceeds from the offering for further development of its lead clinical program, TNFerade, and other general corporate purposes. The offering is scheduled to close on or about May 29.

Gaithersburg, Maryland-based GenVec is a biopharmaceutical company developing novel therapeutic drugs and vaccines. GenVec’s lead product, TNFerade, is currently in a clinical study in locally advanced pancreatic cancer.

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