Bookham secures $23.48 million from stock offering; Harold's raises $5 million from convertible loan

By Sheri Kasprzak

New York, Sept. 1 - Even as stocks rose, PIPE volume rounded out the week on a subdued note as market insiders geared up for a three-day weekend.

"You mean we're actually supposed to be working today," quipped one sellside market source when asked about a dip in volume Friday. "There's little out there today. It's a Friday; you've got Labor Day weekend coming up. I imagine September will be more active, but a lot of it depends upon oil and these storms we have coming through. It's a wait-and-see game for the most part."

Stocks on Friday were somewhat better with the Dow Jones Industrial Average gaining 83 on the day to close at 11,464.15; the Nasdaq composite index climbing 9.41 to end at 2,193.16; and the Standard & Poor's 500 composite index inching up 7.19 to settle at 1,311.01.

Looking to particular offerings Friday, Bookham, Inc. announced the pending settlement of a $23,479,200 private placement of 8,696,000 shares.

The shares will be sold at $2.70 each to a group of institutional investors. The price per share represents at 15.1% discount to the company's $3.18 closing stock price on Thursday.

The investors will also receive warrants for 2,174,000 shares, exercisable at $4.00 each for five years. The warrants become exercisable after March 1, 2007. The strike price represents a 26% premium over the company's closing stock price on Thursday of $3.18.

Cowen & Co., LLC was the placement agent.

Some of the investors in the offering will have the option to buy up to 2,898,667 additional shares and warrants for up to 724,667 shares under the same terms before Sept. 19.

The company's stock dipped after news of the offering was announced Friday morning. The stock lost 9 cents, or 2.83%, to close at $3.09, giving up another 19 cents, or 6.15%, in after-hours trading (Nasdaq: BKHM).

San Jose, Calif.-based Bookham manufactures optical components, modules and subsystems used in telecommunications, data communications, aerospace and industry.

Harold's raises $5 million

Elsewhere in the market, Harold's Stores, Inc. wrapped up a $5 million subordinated loan agreement with RonHow LLC. The investor may choose to increase the size of the loan to $10 million.

The 13.5% loan matures May 2010 and is convertible into series 2006-B preferred stock at $1,000 of principal for each preferred share.

The investor received a warrant for up to 1,032 shares of series 2006-B preferred stock with a liquidation value of $1,000 each. The warrants expire in 10 years.

The preferreds are convertible into common shares at $0.43 each.

Proceeds from the offering will be used to pay down an existing revolving credit facility with Wells Fargo Retail Finance II LLC.

"This funding is a significant show of continuing support by our major shareholders," said Leonard Snyder, the company's interim chief executive officer, in a statement. "This funding will enhance our daily working capital and allow us to continue to implement key strategic initiatives to improve our merchandise content and real estate portfolio."

The stock closed unchanged at $0.51 Friday (OTCBB: HLDI).

Dallas-based Harold's Stores operates specialty clothing stores in 19 states.

Uniterre settles PIPE

North of the border, Uniterre Resources Ltd. concluded a C$1,655,000 private placement of units.

The company sold 1,655 units at C$1,000 each. Each unit consists of C$1,000 in principal of convertible debentures and warrants for 1,000 shares.

The 8% debentures are due in 2.5 years and are convertible into flow-through units of one share and one half-share warrant at C$0.50 each.

Each of the whole warrants are exercisable at C$0.55 each for two years.

Northern Securities Inc. was the underwriter for the deal.

Proceeds will be used by NaiJun Wind Development Inc., the developer of NaiKun Wind Farm in British Columbia.

Vancouver, B.C.-based Uniterre develops renewable energy sources focused on wind power projects.

Dynavax stock edges up

In secondary market action, Dynavax Technologies Corp. saw its stock climb slightly on Friday after wrapping a $30 million committed equity financing with Azimuth Opportunity Ltd.

The stock gained 8 cents, or 2.01%, to end at $4.07 (Nasdaq: DVAX). On Thursday, the stock slipped by 2.68%, or 11 cents, to end at $3.99.

Under the terms of the 18-month line, Azimuth agreed to buy shares of Dynavax at discounts ranging from 5.2% to 7% of the volume weighted average price of the stock for 10 trading days before a draw. The discount is based upon trading volume.

Proceeds will be used for development of the company's lead programs, including Tolamba, Dynavax's product for allergic rhinitis, and Heplisav, a hepatitis B vaccine.

Dynavax, based in Berkeley, Calif., develops treatments for cancer and allergies and is developing a vaccine for hepatitis B.

Elsewhere, Micromet, Inc., which also sealed an equity line on Thursday, watched its stock dip Friday, giving up 1.01 cents, or 0.39%, to settle at $2.5899 (Nasdaq: MITI). The stock had edged up by 5 cents to close at $2.60 on Thursday when the line was first announced.

Under the terms of the $25 million three-year equity line, Kingsbridge Capital Ltd. agreed to buy shares at discounts ranging from 6% to 14% to the average market price over an eight-day pricing period.

The company, which is based in Carlsbad, Calif., has two product candidates for cancer in clinical development and an early stage pipeline that it intends to advance into the clinic. MT201 (adecatumumab) is a human antibody being tested as a monoagent in two phase 2 trials in prostate cancer and in metastatic breast cancer. MT201 is being developed in collaboration with Serono. MT103 (MEDI-538), a BiTE compound currently in a phase 1 clinical trial in non-Hodgkins lymphoma in Europe.

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