Arrowhead wraps $10 million PIPE; Oxis raises $1.35 million from discounted debentures

By Sheri Kasprzak

New York, Oct. 26 - Even after the company wrapped a $10 million offering at a 73.8% discount to market price, Arrowhead Research Corp.'s stock climbed by more than 4.5% on Thursday.

The stock gained 21 cents to settle the session at $4.28 (Nasdaq: ARWR).

The offering, conducted on behalf of subsidiary Insert Therapeutics, Inc., included the sale of 10 million units of one share of series C-2 preferred shares and 40% warrant coverage.

Each warrant is exercisable at $1.25 each through July 1, 2007.

The placement includes a $5 million follow-on investment made by Arrowhead itself.

Proceeds will be used for clinical work on the company's IT-101 lead anti-cancer drug currently in phase 1 and the development of other therapeutic candidates in the company's pipeline.

Arrowhead has looked to the PIPE market before for funding. The company pocketed $1 million in August, selling 204,918 shares at $4.88 each. The price per share in that offering was equal to the 10-day trailing average price from Aug. 4.

In January, the company sold 5.59 million shares at $3.50 each for proceeds of $19,565,000. After that deal, the company's stock gave up 15 cents, or 3.21%, to end at $4.52.

Headquartered in Pasadena, Calif., Arrowhead is a nanotechnology company focused on developing products for the life sciences, electronics and energy sectors.

Oxis raises $1.7 million

In other biotech news, Oxis International, Inc. wrapped a $1,694,250 private placement of secured convertible debentures for proceeds of $1.35 million.

Bristol Investment Fund, Ltd. was the lead investor in the zero-coupon debentures, which are due Oct. 25, 2008.

The debentures were issued at a 20.318% discount and are initially convertible into 4,857,142 shares at $0.35 each.

The company's stock slipped by a penny on Thursday to end at $0.20 (OTCBB: OXIS).

The investors will receive series A warrants for 2,420,357 shares, exercisable at $0.35 each for five years; series B warrants for 2,420,357 shares, exercisable at $0.385 each for one year; series C warrants for 4,840,714 shares, exercisable at $0.35 each for two years; series D warrants for 2,420,357 shares, exercisable at $0.35 each for six years; and series E warrants for 2,420,357 shares, exercisable at $0.385 each for six years.

Proceeds will be used to repay $600,000 in debt, working capital and general corporate purposes.

Located in Foster City, Calif., Oxis develops clinical and research assays, diagnostics, nutriceutical and therapeutic products.

Protox's stock gives up 10.78%

In secondary biotech activity, Protox Therapeutics Inc.'s stock dropped by almost 10.8% Thursday after pricing a C$10 million unit offering.

The company's stock fell by 5.5 cents, or 10.78%, to close out the day at C$0.455 (TSX Venture: PRX). On Wednesday, the stock dropped by a penny to end at C$0.51.

The volume of Protox shares traded Thursday climbed with 40,500 shares, compared with the average 18,892.

One market source in Toronto said the drop in Protox's stock surprises him.

"I'd think it would be a good thing for them," he said. "They're going to raise at least C$6 million, they've got a new prostate cancer study going on which has good potential for them. I imagine the drop is only temporary. The units were priced pretty much in line."

Protox plans to sell units of one share and one half-share warrant at C$0.50 each.

Jennings Capital Inc. and Canaccord Capital Corp. are the agents.

Proceeds will be used for clinical activities on the company's PRX321compound for brain cancer and PRX302 compound for localized prostate cancer, as well as for research and development and general corporate purposes.

Vancouver, B.C.-based Protox develops therapeutic treatments for cancer and other diseases.

Meanwhile, Allon Therapeutics Inc.'s stock closed unchanged Thursday after it priced an offering for up to C$8 million.

The stock closed, for the second-straight session, at C$0.82 (Toronto: NPC).

In the offering, the company plans to sell units of one share and one half-share warrant at C$0.80 each.

Vancouver-based Allon develops drugs that protect against neurodegenerative diseases like Alzheimer's disease, stroke, traumatic brain injury, multiple sclerosis and neuropathy.

Resin negotiates PIPE

Looking to the technology sector in Canada, Resin Systems Inc. priced a C$5 million offering.

The company plans to sell up to 3,378,378 shares at C$1.48 each, a 16.85% discount to the company's C$1.78 closing stock price on Wednesday.

The offering sent the company's stock down by 9%, losing 16 cents to close at C$1.62 Thursday (Toronto: RS). Volume of Resin shares traded skyrocketed on Thursday with 695,123 shares, compared with an average 112,889 shares.

The deal is scheduled to close Nov. 1.

Based in Edmonton, Alta., Resin develops resin-based communications infrastructure products.

Dolce settles convertible deal

Elsewhere, Dolce Ventures, Inc. concluded a $2,404,800 private placement of series B convertible preferred stock.

The company issued 877,664 shares of the preferred stock at $2.74 each to Vision Opportunity Master Fund, Ltd.; Nite Capital LP; and Ijaz Malik.

The preferreds are convertible into common shares on a one-for-one basis after a 304.44-for-one reverse stock split.

The stock remained unchanged Thursday at $0.0115 (OTCBB: DLCV).

The investors will also receive series A, B, C, D and J warrants for 3,313,841 shares, exercisable at prices ranging from $3.01 to $6.03 each. The A, B, C and D warrants expire in five years and the J warrants expire in one year.

Terms were the same as on the $6,876,802 placement completed on Sept. 7.

Dolce is based in Syracuse, N.Y., and owns and manages public payphones.

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