August 28, 2009 (FinancialWire) — GenVec, Inc. (NASDAQ: GNVC) (Current Market Cap: $75.69 Mil.) said it has entered into a purchase agreement with a single institutional investor for the sale of eight million shares of its common stock and warrants to purchase four million shares of its common stock. The company will see gross proceeds of around $6 million.

The shares and warrants are being offered in units consisting of one share of common stock and 0.50 warrants to purchase one share of common stock at a price of $0.75 per unit.

GenVac said the price represents a discount of around 8.3% to the closing price of GenVec common stock on August 26. The warrants have a term of five years and an exercise price of $0.828 per share.

The company plans to 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 August 31.

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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