Paramount Energy to sell special warrants; Neostem raises $11 million; Javo earns $22.5 million

By Stephanie N. Rotondo

Portland, Ore., April 13 - Paramount Energy Trust announced Monday that it will raise nearly C$7 million in a private placement.

The company plans to sell special warrants convertible into common stock at a 1 to 1 basis.

Meanwhile, Neostem Inc. completed a private placement of preferred stock, the company said. The deal brought in $11 million and proceeds will be used to further the company's activities in China, among other things.

Javo Beverage Co. Inc. also settled a $22.5 million fundraising. The company said it sold promissory notes, stock and units in two deals.

Cell Therapeutics Inc. is aiming to raise $20 million in a direct offering. The offering will include preferred share and warrants good for common stock, according to a regulatory filing.

Paramount plans warrant sale

Paramount Energy, a natural gas-focused energy trust, is planning to raise C$6.92 million via a private placement of special warrants.

The approximately 9.2 million warrants will be sold to Profound Energy Inc., according to a press release. The warrants will be sold at C$0.75 each and are convertible into common stock at a 1 to 1 basis.

Settlement is expected on Tuesday.

Calls made to the company seeking comment were not returned Monday.

The Calgary-based company's stock (Toronto: PMT.UN) dropped 2 cents, or 0.56%, to C$3.56.

Neostem raises $11 million

Neostem wrapped an $11 million private placement of series D convertible redeemable preferred stock, the company announced.

Under the terms of the deal, the New York-based company issued units at $12.50 per unit. Each unit contained a preferred share and 10 warrants, exercisable at $2.50 for five years. Each preferred automatically converts to 10 common shares, according to a press release.

Neostem, which collects and stores stem cells for use in medical treatments, said the proceeds will be used to support development of certain technology as well as to advance the company's activities in China. Investors in the deal were largely Chinese firms and families.

"We are extremely pleased to receive this substantial investment from a group of highly respected investors in Asia," said Robin Smith, chairman and chief executive officer, in a statement. "Our relationships with our business partners in China continue to deepen as we recognize increasing areas of synergies among our innovative stem-cell technologies, products and services, and business models. When these acquisitions are completed, we anticipate NeoStem will benefit greatly from expanded new markets, distribution channels and production capabilities for a growing pipeline of regenerative drugs and procedures offered in the world's two largest economies."

"We are extremely optimistic about the growth opportunities for NeoStem based on its multi-pronged plan to capitalize on a growing PRC-based network," added Eric Wei, managing partner of RimAsia Capital Partners, LP, one of Neostem's investors. "We are glad to be joined by other investors in Asia who recognize the huge market potential for stem cell therapies in the PRC, a field in which breakthroughs are developing at an accelerating rate."

Neostem's equity (Amex: NBS) fell 15 cents, or 12.71%, to $1.03. Market capitalization is $8.14 million.

Javo wraps $22.5 million deals

Javo Beverage Co. completed a multi-tranche private placement on April 6, according to a regulatory filing.

The San Diego-based drink maker said it secured $22.5 million through the sale of senior subordinated promissory notes, common stock and units in an 8-K filed with the Securities and Exchange Commission.

Javo issued $12 million of the 10% notes maturing on demand on Jan. 1, 2017 to Coffee Holdings LLC. Interest on the notes is payable quarterly beginning July 1, with principal and interest becoming payable on April 1, 2012. The notes are callable at any time without penalty.

Also, Javo sold 50 million common shares to Coffee Holdings. The two deals brought in a total of $12.5 million.

Furthermore, the company said it sold 100 units to accredited investors, raising $10 million. Each unit consisted of $100,000 in notes and 500,000 common shares. Each unit sold at $100,000, with 35.4 being sold in January and the remainder selling on April 6.

Proceeds from the financings will be used to retire outstanding debt, specifically the company's senior convertible promissory notes issued in December 2006. According to the filing, about $21 million of the issue remained outstanding.

"In light of the current conditions in the capital markets, the completion of our offering is a strong vote of confidence in the Javo business model," said Cody Ashwell, chief executive officer of Javo Beverage, in a press release. "While the offering provides the necessary liquidity to both retire our 2006 convertible debt and fuel ongoing customer expansion opportunities, it also allows for flexibility in the capital structure to grow well beyond 2009."

Javo's stock (OTCBB: JAVO) gained a penny, or 3.85%, to $0.27. Market capitalization is $52.3 million.

Cell Therapeutics plans direct offering

Cell Therapeutics announced a $20 million direct offering of convertible preferreds in a regulatory filing.

The Seattle-based company will sell 20,000 series 1 preferred shares, class A warrants for 9.2 million common shares and class B warrants for 13.3 million common shares to Cranshire Capital LP.

The preferreds will be issued at $1,000 each and are convertible into registered common stock at $0.30. Each warrant is exercisable at $0.41.

Cell Therapeutics' stock (Nasdaq: CTIC) slipped $0.0725, or 19.08%, to $0.3075. Market capitalization is $99 million.

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