Hemispherx arranges offering; Cytokinetics to raise $14 million; Ondine plans equity exchange

By Stephanie N. Rotondo

Portland, Ore., May 19 - Tuesday was another day of direct offerings in the private placement marketplace and the medical sector was leading the charge.

Both Hemispherx Biopharma Inc. and Cytokinetics Inc. announced registered direct offerings of stock and warrants. Hemispherx plans to take in $16 million through the offering, which is in addition to the $18.3 million raised from a deal announced the week before. Cytokinetics meanwhile will raise $14 million.

Also in the pharmaceutical sphere, Ondine Biopharma Corp. announced a C$1.78 million stock exchange with Grafton Resource Investments Ltd.

Elsewhere, Dana Petroleum plc arranged a £56.03 million stock sale, according to a press release. The majority of the funds from the transaction will be used for project financing.

Hemispherx arranges second offering

Hemispherx Biopharma arranged a $16 million registered direct offering of stock and warrants, according to a press release.

Under the terms of the deal, two institutional investors will purchase a total of approximately 11.9 million common shares at $1.34375 per share. The investors will also receive warrants equal to approximately 4.2 million shares. The warrants are exercisable at $1.31 for five years.

The deal is in addition to an $18.3 million registered direct offering of stock and warrants announced on May 11. Proceeds from both financings will be used to fund commercialization of the company's Alferon N, a pharmaceutical approved for treatment of certain sexually transmitted diseases.

Dianne Will, who handles investor relations for Hemispherx, said that the company likely opted to do a second financing simply because it could.

"My feeling is that it was offered and they could," she said in an interview with Prospect News. "This gives them a lot of runway."

Will added that the completion of both transactions will put the company "in a position of strength financially."

Hemispherx's equity (Amex: HEB) dropped 52 cents, or 26.94%, to $1.41. Market capitalization is $121 million.

Hemispherx is a Philadelphia-based developer of drugs that treats debilitating disorders, like viral diseases and immune-system disorders.

Cytokinetics to take in $14 million

Elsewhere in the world of pharmaceuticals, Cytokinetics said it was planning to raise $14 million via a registered direct offering of common share units.

The South San Francisco-based company will issue approximately 7.1 million units consisting of one common share and one half-share warrant. The units will sell for $1.97 a unit and each whole 30-month warrant is exercisable at $2.75.

Funds from the transaction will be used in part to fund clinical trials for the company's drug candidates. Settlement is expected by May 21.

Calls seeking comment went unreturned Tuesday.

Cytokinetics' stock (Nasdaq: CYTK) fell 13 cents, or 6.6%, to $1.84. Market capitalization is $105 million.

Ondine plans equity exchange

Among other pharmaceutical companies, Ondine Biopharma announced a C$1.78 million stock exchange with Grafton Resource Investments Ltd.

Under the terms of the deal, Grafton will receive approximately 14.9 million shares valued at C$0.12 per share. Ondine will receive 39,042 of Grafton's shares, valued at $38.42 per share.

Upon completion of the transaction, Grafton will own 17.5% of Ondine's outstanding equity.

"The investment in Ondine by the Grafton Fund demonstrates support for commercialization efforts of Ondine's MRSA nasal decolonization product, MRSAid, and the company's plans to pursue other photodynamic disinfection opportunities in the $10 billion hospital-acquired infection market," said Carolyn Cross, Ondine's chairman and chief executive officer, in a statement. "Ondine expects that over the coming quarters, Grafton Fund shares will be a source of working capital to fund ongoing operations through Ondine's sale or pledge of Grafton shares in the short to medium term."

Ondine's stock (Toronto: OBP) gained a penny, or 8.33%, to C$0.13. Market capitalization is C$9.1 million.

Ondine Biopharma is a Vancouver, B.C.-based developer of non-antibiotic therapies for the treatment of bacterial, fungal and viral infections.

Dana Petroleum secures financing

Aberdeen, Scotland-based Dana Petroleum will take in £56.03 million by privately placing stock, the company announced.

Dana will sell approximately 4.3 million ordinary shares at 1,290p per share.

In its statement announcing the financing, Dana said that its "intensive" drilling program had resulted in the discovery of new oil and gas fields, including one in the Rinnes area of the United Kingdom North Sea and two new gas fields found with Dana's first wells offshore the Nile Delta, Egypt and offshore Morocco at Anchois in the Tanger Larache concession.

"In addition, Dana has made a gas condensate discovery at Fulla, offshore Norway and made further oil discoveries both onshore and offshore Egypt," the company said.

With the new funding, Dana intends to further development of the new discoveries.

"Following this drilling success across all its core areas, Dana is now even better-positioned in terms of future growth and the company has a number of opportunities to add value for shareholders by driving forward the appraisal and development work on these new oil and gas accumulations," the company said.

"Already this year, Dana has secured extra rig time in order to drill sidetracks on the Rinnes, Fulla and Anchois discoveries. This has been an efficient way to gather more reservoir information and therefore accelerate value creation. During 2009, Dana is expecting to invest approximately £244 million on its existing fields and licenses, of which around £140 million will be on exploration and appraisal. The continued drilling success has grown Dana's business opportunity set and as such the board believes that it is appropriate to seek additional equity financing and ensure an appropriate, conservative capital structure for the company."

Dana's shares (London: DNX) closed at 1,300p. Market capitalization is £1.13 billion.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.