Beijing Med-Pharm announces $32.61 million sale; Qiao Xing Universal Telephone pockets $25 million

By Laura Lutz

Des Moines, Aug. 21 - Beijing Med-Pharm Corp. led Tuesday's new PIPE deals with a $32,605,883 private placement of units.

The company priced 3,470,557 units at $9.935 apiece. The deal is expected to settle on Wednesday.

Each unit consists of one common share and 0.2 warrants with each whole warrant exercisable at $9.37 for five years.

Philadelphia Brokerage Corp. acted as placement agent.

Beijing Med-Pharm is a pharmaceutical marketing and distribution company based in Plymouth Meeting, Pa.

"This financing enables Beijing Med-Pharm to advance our tactical operations and realize our strategic vision as a leading company offering a comprehensive, end-to-end solution to Western pharmaceutical companies seeking to enter the Chinese market while also expanding our own distribution of our products across China," said David Gao, president and chief executive officer of Beijing Med-Pharm, in a news release.

The company's stock lost 24 cents, or 2.52%, to close at $9.29 on Tuesday (Nasdaq: BJGP).

In China, Qiao Xing Universal Telephone, Inc. announced details of its $25 million private placement of convertible bonds with DKR Soundshore Oasis Holding Fund Ltd. and Cedar DKR Holding Fund Ltd.

The bonds bear interest at 5.5% per year and mature on Feb. 17, 2010.

They are convertible at any time at $10.19 per share. The conversion price is equal to 110% of the average of the daily weighted average prices of the company's shares for the five trading days before issuance of the bonds.

The investors also received warrants for a total of 24,534 shares. The warrants are exercisable at $10.19 for five years.

"One of the two strategic investors has previously participated in several rounds of investment in the Company," Wu Rui Lin, chairman of the company, said in a news release. "This new investment further demonstrates this strategic investor's confidence in XING's solid fundamentals and prospects."

Based in Guangdong, China, Qiao Xing develops and distributes telecommunications products.

The stock closed at $8.46 on Friday, the day the placement was settled. With Tuesday's announcement, the stock closed up $1.52, or 18.49%, at $9.74 before gaining another 6 cents in after-hours trading (Nasdaq: XING).

Encysive, Medicure plan offerings

In biopharmaceutical news, two companies announced $15 million private placements of stock.

Houston-based Encysive Pharmaceuticals Inc. plans to sell about 7.7 million shares, equivalent to a price of about $1.95 per share.

Investors in that deal will receive also warrants for about 7.7 million shares, exercisable at $1.95 each.

Rodman & Renshaw, LLC is placement agent. Settlement is expected on Aug. 24.

Some of the proceeds will be used for commercialization of the company's Thelin product, an oral endothelin receptor antagonist, in Europe Canada and Australia. The remainder will be used for other working capital and general corporate purposes.

The company's stock closed down 14 cents, or 7.07%, at $1.84 on Tuesday before gaining back 5.25 cents in after-hours trading (Nasdaq: ENCY).

To the North, Winnipeg, Manitoba-based Medicure Inc. arranged an offering of 13.04 million common shares at $1.15 each.

The investors will also receive warrants for about 3.9 million shares. The warrants will be exercisable at $1.50 per share for five years.

Medicure also announced that it has secured a $25 million investment from Macherster Securities Corp., an affiliate of Elliott Associates, LP. Under that agreement, Elliot will receive an escalating minimum annual return starting at $2.5 million based on revenues of the company's Aggrastat product.

Medicure focuses on pharmaceutical treatments for cardiovascular diseases. Its shares gained 4 cents, or 3.28%, to close at C$1.26 on Tuesday (Toronto: MPH).

Pacific Energy shrinks deal

In Canadian resource news, Pacific Energy Resources Ltd. downsized its private placement to C$75 million just one day after it had increased the size to C$100 million.

The deal was originally announced on June 21 as a C$50 million offering. Pricing was not set until Monday, when the C$100 million size was also announced.

The placement is now expected to include 30 million shares at C$2.50 each.

Octagon Capital Corp., D&D Securities Co. and Energy Capital Solutions are the agents.

Some of the proceeds will be used for a planned acquisition of Alaskan assets from Forest Oil Corp. The rest will be used for exploration and development, for working capital and for general business purposes.

The company's shares lost 13 cents, or 4.76% to end Tuesday at C$2.60 (Toronto: PFE).

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