Vical to issue units; PURE Bioscience plans $3 million stock sale; Altair to raise $15 million

By Stephanie N. Rotondo

Portland, Ore., May 22 - The pre-holiday session saw fewer deals coming to market Friday. But of the deals that were announced, the majority were of the direct offering variety.

Vical Inc. announced a plan to raise $15.4 million by issuing units. The company said the deal was brought about by an "unusual trading day" in the company's stock on Thursday.

Meanwhile, PURE Bioscience also announced a direct offering of stock and warrants. The deal is valued at $3 million and proceeds will be used for working capital.

Altair Nanotechnologies Inc. hopes to take in $15 million through its direct offering. The company will offer equity and warrants.

The market will be closed on Monday is observance of Memorial Day.

Vical to issue units

Vaccine manufacturer Vical announced a $15.4 million registered direct offering of stock and options.

Under the terms of the deal, Vical will sell units for approximately 6.66 million common shares and options for another 3.33 million shares at $2.3125 per unit. The options are exercisable at $2.25 per share.

Alan R. Engbring, director of investor relations for the company, said that the deal came about as the company's stock experienced "an unusual trading day" on Thursday.

"So it created an opportunity for us to get this done quickly," he said in an interview with Prospect News.

When asked why the stock had suddenly jumped in trading volume and price, he stated that he "can't speak to individual motivations." However, he noted that the company had issued a press release regarding its swine flu vaccine and had also opened trading at Nasdaq.

"So that would have brought some attention to the company," he said.

Regarding the swine flu release, the company said on Thursday that it had completed a prototype vaccine for protecting against the virus and that, with testing and funding, hoped to begin large sale manufacturing.

"The ongoing H1N1 influenza outbreaks remain a focal point of international discussions regarding the need for and feasibility of producing an H1 vaccine," said Vijay B. Samant, Vical's president and chief executive officer, in the release. "We have already demonstrated the speed of our technology by producing an H1 vaccine and initiating animal testing while others are still assessing the situation. Vical is uniquely positioned to quickly produce an H1 influenza vaccine, building on our successful completion last year of Phase 1 human trials of our H5 influenza vaccine. Our biggest remaining hurdles are not technological, but financial. We are eager to secure the required financial resources as soon as possible to allow continued development in collaboration with the U.S. Navy, and to make vaccine supplies available before they are needed."

Vical's equity (Nasdaq: VICL) fell 14 cents, or 6.22%, to $2.11.

PURE plans stock sale

San Diego-based PURE Bioscience will take in $3 million via a registered direct offering of stock and warrants, according to a press release.

The company will issue approximately 1.42 million shares at $2.115 per share, an 11% discount to PURE's average closing bid price of the trailing five days ended May 21. An equal number of warrants will also be issued.

The warrants are good for up to 496,454 additional shares and are exercisable at $2.37.

PURE's stock (OTCBB: PURE) dropped 17 cents, or 7.46%, to $2.11.

Altair to raise $15 million

Altair Nanotechnologies announced a $15 million registered direct offering of stock and warrants.

Reno, Nev.-based Altair will sell approximately 11.9 million common shares at $1.17 per share. Warrants equal to 0.55 common shares will also be issued with a strike price of $1.00. The warrants are good for seven years.

Settlement is expected May 28.

Altair's shares (Nasdaq: ALTI) dipped 30 cents, or 22.22%, to $1.05.

Calls seeking comment were not returned Friday.

Altair Nanotechnologies is a leading provider of energy storage systems for clean, efficient power and energy management.

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