CombiMatrix to close $5.02 million direct placement; MDI wraps $4 million offering

By Sheri Kasprzak

New York, May 7 - PIPE activity got off to an active start with several offerings from the tech and biotech sectors.

The action was led by a $5,018,400 direct placement from CombiMatrix Group.

The deal comes as CombiMatrix is splitting off from parent company Acacia Research Corp.

A group of investors agreed to buy 6.8 million units of one share and one warrant for one and half shares at $0.738 each. Each full warrant is exercisable at $0.55 for five years.

The shares and underlying shares are being sold under the company's shelf registration.

The deal was expected to close Monday.

On Monday, Acacia's stock fell 3.4%, or 49 cents, to settle at $13.98 (Nasdaq: ACTG) but gained 12 cents in after-hours trading.

"This financing strengthens our balance sheet as we split off from Acacia, and it provides additional capital to fund our expansion in the molecular diagnostics market," said Amit Kumar, the company's chief executive officer, in a statement.

Based in Newport Beach, Calif., CombiMatrix is a division of Acacia Research Corp. The company uses semiconductor technology to determine the roles of genes, gene mutations and proteins.

Even though tech stocks were off on Monday, one market source said recent gains in the sector may be fueling more offerings.

"I think a lot of what we're seeing in the market now is coming from a week or two ago when [tech] stocks were really hot," he said. "They seem to be coming off their highs a bit."

MDI raises $4 million

Elsewhere in the sector, MDI, Inc. closed a $4 million private placement with Hudson Bay Fund LP; Hudson Bay Overseas Fund Ltd.; and Vertical Ventures Investments LLC.

The investors bought 2,395,210 shares at $1.67 each and received warrants for 1,197,605 shares, exercisable at $2.51 each.

Proceeds will be used for working capital.

The stock fell 15 cents to close at $2.14 Monday (Nasdaq: MDII).

"We are pleased to announce this financing as a testament to both the success in executing our business strategy thus far and the tremendous potential we see moving forward," said J. Collier Sparks, the company's CEO, in a news release.

"Our market is projected to grow significantly in the coming years. MDI, already recognized throughout the industry as the leader in our space, is well positioned to capture this growth opportunity. The proceeds from completing this financing provide for a stronger balance sheet by enhancing our shareholders' equity and provide working capital that will assist us in the continued execution of our business plan."

Located in San Antonio, MDI manufactures security technology products.

AMDL pockets $3.8 million

Moving to the biotech sector, AMDL, Inc. settled a $3.79 million private placement of 1,443,620 units at $2.625 each.

The units include one share and one half-share warrant. Each whole warrant is exercisable at $3.86 for three and a half years.

Galileo Asset Management, SA was the placement agent for the deal.

The company intends to sell a total of 2 million units in the deal.

"The reception to the offering was extremely gratifying," said AMDL president Gary Dreher in a statement.

"These funds provide the additional working capital we need to expand Jade Pharmaceutical Inc.'s business and product development efforts in China and for approval of DR-70 in Asia and the U.S."

The stock lost 7.44 cents to close at $3.1156 Monday (Nasdaq: ADL).

Based in Tustin, Calif., AMDL develops tests for the early detection of cancer and other serious diseases.

Natural Health's $2.9 million deal

In other PIPE news, Natural Health Trends Corp. closed a private placement of series A convertible preferred stock for $2,990,822.

The company sold 1,759,307 shares of the preferreds at $1.70 each. The 7% preferreds are convertible into common shares on a one-for-one basis.

The investors received warrants for 1,759,307 common shares, exercisable for six years at prices ranging from $3.80 to $5.00 each.

Proceeds will be used for working capital.

"We are pleased that the placement is fully subscribed," said Natural Health Trends president Chris Sharng in a statement.

"Most importantly, most of the proceeds come from our own members in Greater China. We think it is strategically advantageous that more of our members align their interests with those of our stockholders. Their subscription represents their commitment to the company and the business."

Dallas-based Natural Health Trends is a direct-selling and e-commerce company focused on personal care products.

Abacus' C$15.05 million deal

Moving north of the border to resources offerings, Abacus Mining & Exploration Corp. grabbed headlines with its planned C$15.05 million private placement of units.

The deal includes up to 11.5 million non flow-through units at C$0.70 each and up to 8.75 million flow-through units at C$0.80 each.

The common units include one share and one half-share warrant. The whole warrants are exercisable at C$1.25 each for 18 months.

The flow-through units consist of one flow-through share and one half-share warrant. Those warrants are also exercisable at C$1.25 each for 18 months.

Pacific Securities Inc. and Dundee Securities Corp. are the lead agents for the deal. The agents have a greenshoe for up to 2.875 million additional flow-through units.

The offering is expected to close June 6.

On Monday, the stock slipped by 6 cents to finish at C$0.68 (TSX Venture: AME).

The company is also conducting a non-brokered offering of 1 million flow-through units for C$800,000.

Proceeds from both flow-through offerings will be used for exploration on the company's Afton property. The rest will be used for working capital.

Based in Vancouver, B.C., Abacus is a mineral exploration company.

Macusani wraps C$5 million deal

In other resources offerings, Macusani Yellowcake Inc. pocketed C$5 million from the sale of 6,666,667 units at C$0.75 each.

The units include one share and one half-share warrant. The full warrants are exercisable at C$1.00 each for one year.

The offering was not brokered.

Proceeds will be used for exploration on the company's uranium properties and for working capital.

Toronto-based Macusani is a uranium exploration company.

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