Neurologix settles $12 million PIPE; Avigen secures $21.2 million from stock sale

By Sheri Kasprzak

New York, May 11 - Neurologix, Inc. led PIPE action Thursday, closing up a $11,999,995 offering of series C convertible preferreds.

A group of investors including General Electric Pension Trust, the DaimlerChrysler Corp. Master Retirement Trust and funds managed by ProMed Management, Inc. purchased 342,857 preferreds at $35.00 apiece.

The 9% preferreds are convertible into 19.66 common shares each.

The group of investors received warrants for 2,224,719 shares, exercisable at $2.05 each.

Neurologix intends to use the proceeds from the deal for working capital and general corporate purposes.

The stock gained 10 cents, or 5.56%, after the offering was announced Thursday morning (OTCBB: NRGX).

"We are extremely pleased that these major institutions have chosen to invest in Neurologix at this critical and exciting period in the company's history," said Michael Sorell, Neurologix's chief executive officer, in a news release from Thursday morning.

"As we formally complete our landmark phase 1 trial of gene therapy for Parkinson's disease this month, this transaction will facilitate further development of this program toward our eventual goal of bringing to market a gene therapy product for this devastating disorder.

"This funding will also help us establish manufacturing arrangements for our Parkinson's disease product, which will be necessary for a pivotal trial and, subject to [Food and Drug Administration] approval, for commercial sales. This financing will also allow us to advance our clinical gene therapy program in epilepsy and bring to completion the phase 1 clinical trial for that program. This will also facilitate the expansion of our ongoing pre-clinical efforts in Huntington's disease and other neurological disorders."

Neurologix has gone to the PIPE market for cash before, settling a $2 million stock deal with Medtronic International on May 2, 2005 and wrapping a $3.5 million stock offering on March 4, 2005.

In the May 2005 placement, the company sold shares at $1.752 each and in the March 2005 deal, the investors bought shares at $1.30 each.

On May 2, 2005, the stock gained 20 cents to close at $2.25 and on March 4, 2005, the stock closed unchanged at $2.15.

Located in Fort Lee, N.J., Neurologix is a research and development company focused on treatments for brain and central nervous system disorders.

Avigen's $21.2 million deal

In other biotech news, Avigen, Inc. secured agreements for a $21.2 million private placement.

The company plans to sell roughly 3.9 million shares at $5.37 each to a group of institutional investors. The exact number of shares being issued could not be determined by press time Thursday.

The price per share was an 11% discount to the company's $6.04 closing stock price on May 10.

The offering is scheduled to close May 15.

When the deal was announced Thursday afternoon, the stock dropped 24 cents, or 3.97%, to close the session at $5.80 (Nasdaq: AVGN).

The proceeds will be used for the expansion of planned development programs to pursue additional applications for the company's current neurologic compounds. The rest will be used to accelerate the development of the company's non-core compound, AV513, used to treat hemophilia and other bleeding disorders.

Based in Alameda, Calif., Avigen is a biopharmaceutical company focused on treatments for neurological disorders.

Starcore's C$30 million offering

As gold prices continued their upward climb, Starcore International Ventures Ltd. priced a C$30 million private placement of subscription receipts connected to the company's acquisition of the San Martin mine.

The placement includes to sell up to 50 million receipts exchangeable for units of one share and one half-share warrant once the acquisition is completed.

The whole warrants are exercisable at C$1.00 each for three years.

Placement agent Bolder Investment Partners, Ltd. has a greenshoe for up to 10% of the offering size.

Starcore's stock gained a penny on Thursday to end at C$0.80 (TSX Venture: SAM).

The proceeds from the deal will be used to acquire the San Martin mine from Luismin SA de CV, which is a subsidiary of Goldcorp Inc.

Starcore is based in Vancouver, B.C.

The deal was one of several gold offerings priced on Thursday as gold prices continue to jump. Prices climbed again on Thursday, this time gaining $15.80 to end at $721.50 per ounce.

In other gold offerings, Kirkland Lake Gold Inc. proposed a C$15 million unit deal comprised of 1,630,435 units at C$9.20 apiece.

Each unit includes one share and one half-share warrant. The whole warrants are exercisable at C$10.50 each for one year.

The proceeds will be used for development on the company's Kirkland Lake, Ont., mineral properties.

"The recent rise in the gold price has advanced the priority of the re-commissioning of the #5 shaft of the former Lake Shore property to support exploration and development in the eastern half of the company's seven kilometer-long property," said Brian Hinchcliffe, Kirkland Lake's president, in a news release.

On Thursday, Kirkland Lake's stock closed up 18 cents to end at C$9.44 (Toronto: KGI).

Based in Kirkland Lake, Ont., Kirkland Lake is a gold exploration company.

American Bonanza joins gold rush

Gold explorer American Bonanza Gold Corp. negotiated a C$6.05 million private placement of flow-through shares and units.

The deal includes up to 5.5 million flow-through shares at C$0.55 each and up to 5.5 million units at C$0.55 each.

The units are comprised of one share and one half-share warrant. Each whole warrant is exercisable at C$0.65 for 18 months.

Dundee Securities Corp. and Haywood Securities Inc. are the placement agents.

The company's stock slipped a penny to close at C$0.51 (Toronto: BZA).

Proceeds will be used for a drilling program on the Copperstone project in Arizona, as well as drilling at the Fenelon project.

American Bonanza is located in Vancouver, B.C.

Roca plans C$10 million placement

Elsewhere in the natural resources sector, Roca Mines Inc. priced a C$10,011,000 stock deal.

Salman Partners Inc. is the placement agent for the deal, which includes up to 14.1 million shares at C$0.71 each.

Salman has a greenshoe for up to 20% of the offering size.

The proceeds will be used for construction costs associated with the company's Max molybdenum project in British Columbia.

The deal is scheduled to close June 8.

The stock climbed a penny to end the day at C$0.75 (TSX Venture: ROK).

Roca is a mineral exploration company based in Vancouver, B.C.

Emisphere's stock dips

A day after announcing the pending completion of a $33.04 million direct placement of stock, Emisphere Technologies, Inc.'s stock ended off 5.35%.

On Thursday, the stock dropped 52 cents to close at $9.20, but gained 20 cents in after-hours activity (Nasdaq: EMIS).

The stock advanced by 17.96%, or $1.48, Wednesday when the placement was announced to close at $9.72.

Under the terms of the offering, Emisphere will sell at $8.26 each, just a slight premium to the company's $8.24 closing stock price on May 9.

Headquartered in Tarrytown, N.Y., Emisphere is a biopharmaceutical company focused on developing oral delivery of drugs that would otherwise only be delivered through injection.

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