Delcath to raise $14.2 million; VirtualScopics stock measures up; Northern Oil and Gas stock downhill

By LLuvia Mares

New York, Sept. 18 - Although activity appeared to be slow in the PIPEs market Tuesday, Delcath Systems, Inc. announced plans to raise $14.2 million through a registered direct offering of stock and warrants.

The company (Nasdaq: DCTH ) will sell 3,833,108 units at $3.70 each. Each unit is made up of one share and half a warrant exercisable at $4.53 per share.

The transaction is expected to close Sept. 21.

Canaccord Adams Inc. is the lead placement agent and ThinkEquity Partners, LLC is co-lead.

Proceeds will be used to continue advancement of the company's phase 2 and phase 3 clinical trials, to fund new research and development activities and for other general corporate purposes.

New York-based Delcath is the developer of percutaneous perfusion technology for organ or region-specific delivery of therapeutic and chemotherapeutic agents.

VirtualScopics stock gains

After wrapping a $4.35 million private placement of series B convertible preferred stock and warrants on Monday, VirtualScopics, Inc. was measuring up Tuesday with a 1.36% stock increase.

VirtualScopics (Nasdaq: VSCP) shares rose $0.02 cents, ending the day at $1.25, improved from $1.23 Monday.

The preferreds are convertible at an initial conversion price of $1.2043 per share, a level based on the volume weighted average of recent market prices. If all are converted, the company will issue 3,612,057 shares.

The series B preferred stock carries a dividend of 8%, payable monthly in either cash or in shares.

Warrants to purchase 2,167,234 shares were also issued in the transaction. Half of the shares will have an initial exercise price at the conversion price per share of $1.2043 and half at a 15% premium, equivalent to $1.3849 per share.

BridgePointe Master Fund Ltd. (managed by Roswell Capital Partners) was the lead investor and BayStar Capital III Investment Fund, LP also participated.

Canaccord Adams, Inc. acted as placement agent.

Proceeds from the offering will be used to expand the company's sales, marketing efforts, software, technology enhancements and for ongoing operations.

Rochester, N.Y.-based VirtualScopics specializes in imaging solutions to accelerate drug and medical device development.

Northern Oil slump goes on

Northern Oil and Gas, Inc. has recently seen several changes since it closed a $15 million private placement of shares and warrants last week.

The company (OTCBB: NOGS) saw a 1.98% stock decrease ending the day at $4.95 Tuesday.

The stock has been slowly declining since the company's private placement completion Sept. 11, when it closed at $5.20.

The company sold 4,545,455 shares at $3.30 per share to a group of accredited investors.

A one-half share warrant to purchase common stock at $5.00 per share for 18 months from the date of closing was also attached to each share sold in the transaction.

For each share bought, investors will also have the right to purchase one-half share of common stock at $6.00 per share for 48 months from closing date.

In other news, Northern Oil and Gas also appointed Lisa Bromiley Meier to the company's board of directors.

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