Siga secures $8 million equity line; Playfair, Allon, Enhanced Oil plan offerings; ImmunoGen sells stock

By Kenneth Lim

Boston, June 23 - Siga Technologies, Inc. said it obtained an $8 million equity financing commitment from one of its largest investors.

Playfair Mining Ltd. said it is selling C$3 million of its stock in a private placement, Allon Therapeutics Inc. said it is raising C$20 million through a bought-deal offering.

ImmunoGen, Inc. said it sold $24.96 million of its shares through a direct stock offering to Ziff Asset Management, LP.

Enhanced Oil Resources Inc. announced that it will sell about C$32.5 million worth of stock and warrant units.

Siga secures commitment

Siga Technologies said one of its largest investors has agreed to buy up to $8 million worth of stock as part of a financing commitment.

The deal allows Siga to require MacAndrews & Forbes to buy up to $8 million in common shares at any time in the next 12 months in up to three tranches. The purchase price will be the lesser of $3.06 and the average of the volume-weighted average share price for the five trading days before the purchase date.

Siga common stock (Nasdaq: SIGA) closed at $3.41 on Monday, higher by 4.28% or $0.14.

With each tranche that is sold, Siga will also issue warrants for up to 40% of the shares sold with an exercise price equal to 115% of the share purchase price.

MacAndrews & Forbes, which held about 12.2% of Siga's outstanding share capital as of March, may also require Siga to sell it additional shares on the same terms.

MacAndrews & Forbes has also received 238,000 bonus warrants with a strike price of $3.06.

Siga is a New York-based biotech company whose lead product, ST-246, is a smallpox treatment. The company said it will use the proceeds to fund research and development, enhance its ability to commercialize its products and for general corporate purposes.

"This agreement is a significant affirmation of the progress that Siga has made," Siga chief executive Eric A. Rose said in a statement. "Obtaining this commitment now assures our investors and partners that Siga will have the financial strength it needs as it continues towards its near-term goal of commercializing our lead product candidate, ST-246, and makes additional progress on its pipeline of drugs in development."

Playfair funds projects

Playfair Mining said it is raising C$3 million of flow-through capital through a stock placement.

The deal will involved 10 million flow-through shares at C$0.30 per share. Playfair common stock (TSX: PLY) dropped 15.38% or C$0.40 to close at C$0.22 on Monday.

Playfair, a mineral exploration company based in Vancouver, B.C., will use the proceeds to fund its drill programs at the Risby and Grey River tungsten projects.

"We are excited and confident that the drill programs at Risby and Grey River will add considerably to our already sizeable NI 43-101 compliant resources," Playfair chairman and chief executive Donald Moore said in a press release. "This is a big part of our strategy to move Playfair towards becoming one of the western world's next tungsten producers, and is a major step in establishing Risby as a world class tungsten deposit."

Allon to raise C$20 million

Allon Therapeutics said it plans to sell C$20 million worth of stock in a private placement.

The company is selling 19.05 million common shares at C$1.05 per share. Allon common stock (TSX: NPC) closed at C$1.04 on Monday, a 14.75% or C$0.18 fall.

There is an over-allotment option for a further C$3 million, or about 2.86 million shares.

GMP Securities LP is the lead underwriter.

Allon, a Vancouver, B.C.-based drug developer that is focusing on neurodegenerative diseases like Alzheimer's, said it will use the proceeds to advance its clinical and drug development programs, for working capital and for general purposes.

ImmunoGen raises $24.96 million

ImmunoGen said it raised $24.96 million through a direct stock offering.

The company sold 7.8 million common shares at $3.20 per share. ImmunoGen common stock (Nasda: IMGN) rose 6.31% or $0.19 to close at $3.20.

The shares were bought by Ziff Asset Management.

ImmunoGen, a Waltham, Mass.-based biopharmaceutical company that is developing cancer treatments, said it will use the proceeds for working capital.

Enhanced Oil to sell units

Enhanced Oil Resources plans to offer C$7.5 million stock and warrant units in a brokered placement and an additional C$25 million of units in a non-brokered deal.

The brokered deal involved about 6.05 million units of one share and one half-share warrant, while the non-brokered offering will involve about 20.16 million units. All the units will be sold at C$1.24 apiece. Each whole warrant will be exercisable for two years at C$1.80.

Enhanced Oil common stock (TSX: EOR) fell 8.57% or C$0.12 to close at C$1.28 on Monday.

There is an over-allotment option for an additional C$2.5 million for placement agent Union Securities Ltd.

Enhanced Oil, a Houston-based oil and gas development company operating the St. John's helium and carbon dioxide field, said it will use the proceeds for its recently purchased oilfield, to continue development at St. John's and to acquire additional oilfields.

Enhanced Oil was formerly called Ridgeway Petroleum Corp.

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