American Home Food prices $5.2 million; Isolagen raises $14 million, pulls convertibles exchange

By LLuvia Mares

New York, Aug. 15 - American Home Food Products, Inc. announced a $5.2 million private placement of redeemable convertible preferred stock Wednesday as part of its acquisition of Artisanal Cheese, LLC.

The company was aiming for a minimum of $3.9 million but raised the maximum $5.2 million it was hoping for.

"It's outstanding across the board," Daniel W. Dowe, company president, told Prospect News. "We bought a great company and we think it's going to have great success."

The preferreds are convertible into common shares at $0.30 each.

The company said it will most likely do a partial redemption at some point.

In addition to the acquisition, Bronxville, N.Y.-based American Home Food Products sold its royalty-generating assets in building materials for $1 million, using the cash to repay existing debt. Remaining debt was exchanged for equity.

American Home Food Products will now make and market specialty cheese.

"It is going to be a luxury brand of specialty cheese," said Dowe. "We are going to make it a brand people will know."

Things were looking good for American Home Food Products Wednesday after its stock closed Wednesday at $0.42, a $0.12 or 40% increase from Tuesday's $0.30 close.

Isolagen drops exchange, sells stock

In other news, Isolagen, Inc. announced Wednesday a $13.8 million registered direct offering of common stock.

Isolagen will sell 6,767,647 million shares at $2.04 each to institutional investors. Settlement is expected Aug. 17.

The shares were offered under a shelf registration statement filed with the Securities and Exchangeable Commission.

Exton, Pa.-based Isolagen also submitted an application with the SEC to voluntarily withdraw a registration statement filed for a proposed exchange of $90 million of 3.5% in convertible subordinated notes due 2024. Wednesday.

Under that proposed exchange, holders could swap their notes for an equal amount of new 3.5% convertible senior notes due 2024. The company also planned to sell up to $30 million of additional new 3.5% convertibles.

In an email, the company stated its main reason for dropping the proposed exchange and new convertible note offering was the current uncertain market.

Isolagen is a biotechnology company specializing in autologous cellular therapies for soft and hard tissue regeneration.

Storm raises C$15 million

From Canada and the resources sector, Storm Exploration Inc. negotiated a private placement of shares for C$15.05 million.

The company intends to sell 1.4 million flow-through shares at C$10.75 each.

FirstEnergy Capital Corp. will lead a syndicate of underwriters that also includes Tristone Capital Inc., Wellington West Capital Markets Inc., CIBC World Markets Inc., Canaccord Capital Corp., GMP Securities LP and Peters & Co. Ltd.

Proceeds will be used for exploration.

Storm is an oil and gas exploration and development company with headquarters in Calgary, Alta.

Strategic Metals Ltd. closed a private placement of units for C$9.02 million.

The company sold 11 million units of one share and one warrant at C$0.82 per unit. Each whole warrant is exercisable at C$1.20 for two years.

Global NR Holding SA subscribed for 5.6 million units, and Exploration Capital Partners 2000 LP, Exploration Capital Partners 1998-B LP and Exploration Capital Partners 2006 LP subscribed for 3.5 million units.

The deal priced on July 16 as a C$8.2 million offering of 10 million units. It was upsized to C$9.02 million on July 17.

Strategic Minerals is a mining company based in Vancouver, B.C.

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