Archipelago gets project funds; Apoquindo plans offering; Chelsea seeks clinical trial funding

By Stephanie N. Rotondo

Portland, Ore., Feb. 26 - More double-digit deals entered the PIPE market on Friday.

Archipelago Resources plc said it completed a £30.9 million private placement of stock in an oversubscribed deal. The funding is expected to fund about 80% of construction costs at one of the company's properties.

Apoquindo Minerals Inc., another mineral explorer, announced a C$20 million placement of units. The deal also includes a C$3 million greenshoe.

Meanwhile, Chelsea Therapeutics International Ltd. said it was seeking more than $18 million from a registered direct offering of shares. The funds will be used for clinical trials and, according to a company spokesperson, the deal was well received by new and existing investors.

Among the day's single-digit offerings, Cleveland BioLabs Inc. orchestrated a $5 million private stock sale. Investors will also receive warrants.

Archipelago gets project funds

Archipelago Resources took in £30.9 million via a private placement of ordinary shares, according to a press release.

The company issued 102 million of the shares at 30p per share.

"The placing was oversubscribed which the company takes as a positive indication of support for the company and the Toka Tindung Gold Project in North Sulawesi, Indonesia," the company said in the release. "It is the board's objective to achieve production by the fourth quarter of 2010."

Archipelago expects that the financing will provide 80% of the funding needed to complete construction at Toka. It estimated that it will need another £7 million to complete the project and expects to raise those funds via "a placing to high net worth investors in relation to the company's proposed listing" on the Australian Securities Exchange and/or "a further placing to institutions."

Archipelago's stock (London: AR) closed at 31p. Market capitalization is £117 million.

Archipelago Resources is a London-based mineral exploration company.

Apoquindo plans unit offering

Apoquindo Minerals intends to raise up to C$23 million from a private placement of units.

The deal priced at C$20 million with a C$3 million greenshoe.

The Vancouver, B.C.-based exploration company will issue 23.53 million units at C$0.85 each. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$1.00 for four years.

Proceeds will be used to advance work at the company's Zafranal poryphyry Copper Gold project in Peru, as well as for working capital. Settlement is expected by March 17.

Calls and emails seeking comment were not returned Friday.

Apoquindo's shares (TSX Venture: AQM) were unchanged at C$0.82. Market capitalization is C$38.9 million.

Chelsea seeks clinical trial funding

Chelsea Therapeutics, a Charlotte, N.C.-based biopharmaceutical company, announced an $18.22 million registered direct offering of equity.

Venrock is the lead investor.

The company will sell 6.7 million common shares at $2.72 per share. Investors will also receive warrants equal to approximately 2.34 million additional shares. The warrants are exercisable at $2.79 for three years.

Kathryn McNeil, head of investor and media relations, told Prospect News that the proceeds will be used for "ongoing clinical trials," specifically for its phase 3 trial for droxidopa. The money will also be used for general corporate purposes.

McNeil also noted that both the company and investors were pleased with the deal's terms and that investors had a "favorable reaction" to the news, especially the participation by Venrock.

"We have a very active and engaged investor relations program," she said, allowing the company to "respond to interest as appropriate."

And, though McNeil said that the company was "always sensitive to dilution...I think it's fair to say that everyone feels the stock is undervalued." While that also plays into dilution concerns, "we believe that the value provided by the capital infusion...will outweigh concerns about dilution."

Chelsea's equity (Nasdaq: CHTP) dropped 2 cents, or 0.71%, to $2.78. Market capitalization is $92.1 million.

Cleveland BioLabs to sell stock

Cleveland BioLabs arranged a $5 million private placement of common stock, the company said in a press release.

The company will sell approximately 1.53 million of the shares at $3.25 each.

Additionally, investors will receive warrants for approximately 1.01 million additional shares. The warrants are exercisable at $4.50 for four and a half years.

Proceeds will be used for working capital. Settlement is expected by March 2.

Calls seeking comment were not returned Friday.

Cleveland's shares (Nasdaq: CBLI) Fell $0.5601, or 13.21%, to $3.6799. Market capitalization is $73.7 million.

Cleveland BioLabs is a Buffalo, N.Y.-based developer of cancer treatments.

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