Gentium to close $47.48 million stock sale; RSX Energy plans C$10.03 million offering

By Sheri Kasprzak

New York, Feb. 7 - Gentium SpA led PIPE news Wednesday with word that it will settle a $47,480,180 private placement of American Depositary Shares.

A group of U.S.- and Italy-based institutional investors agreed to buy the 2.354 million ADSs in the offering at $20.17, a 2.7% discount to the company's $20.75 closing stock price Tuesday.

The offering sent the company's stock up 21 cents, or 1.01%, to close at $20.96 on Wednesday (Nasdaq: GENT). Volume fell on Wednesday with 27,550 shares traded compared with the average 51,453 shares.

The investors in the deal include Alexandra Global Master Fund Ltd.; Atlas Master Fund, Ltd.; Caxton Advantage Life Sciences Fund, LP; Caxton International Ltd.; Chaumiere Consultadoria E Servicos Unipessoal LdA; Credit Suisse Securities (USA) LLC; DAFNA LifeScience Ltd.; DAFNA LifeScience Market Neutral Ltd.; DAFNA LifeScience Select Ltd.; Defiante Farmaceutica LdA; GLG North American Opportunity Fund; Inverlochy Consultadoria E Servicos, LdA; JP Morgan Securities Inc.; Millennium Partners, LP; Morgan Stanley & Co. Inc.; SmallCap World Fund, Inc.; Symphonia Sicav Comparto Italia Flessibile; Symphonia Sicav Comparto Italia Small Cap; UBS O'Connor FBO O'Connor PIPES Corporate Strategies Master Ltd.; Visium Balance Fund, LP; Visium Balanced Offshore Fund, Ltd.; and Windmill Master Fund LP.

ThinkEquity Partners LLC is the placement agent.

Proceeds will be used for the development of the company's product candidates, for the repurchase of marketing rights to Defibrotide to treat veno-occlusive disease and myeloma from Crinos SpA and for general corporate purposes.

"This financing strengthens our balance sheet and allows us to continue development of Defibrotide to treat and prevent VOD and to treat multiple myeloma," said Laura Ferro, the company's chief executive officer, in a news release. "In addition, it gives us the capital to negotiate new drug development and licensing agreements from a position of strength.

"We are pleased with the support shown by some of our existing shareholders as well as by the enthusiasm of a number of new, recognized biotech investors who participated in this financing."

Based in Villa Guardia, Italy, Gentium is a biopharmaceutical company focused on treatments for cancer and vascular diseases.

China Pharma stock drops

In other biotech news Wednesday, China Pharma Holdings, Inc.'s stock fell after the company closed a $4.26 million private placement on Tuesday.

The stock ended down 5.3%, or 10 cents, to close Wednesday at $1.79 (OTCBB: CPHI). The stock dove by 14.86%, or 33 cents, on Tuesday to close at $1.89 after the deal was announced.

The company sold shares at $1.70 each in the placement.

Sterne, Agee & Leach, Inc. was the placement agent.

Proceeds will be used for the development of new drugs in the company's pipeline and for working capital.

Located in Haikou City, China, China Pharma develops Western and Chinese medicines to treat infections, hepatitis, vascular diseases and other diseases.

RSX Energy's C$10.03 million deal

Moving to the oil sector, RSX Energy Inc. arranged a private placement for C$10.029 million even as oil prices slipped.

Oil moved down $1.17 to close at $57.71 per barrel on Wednesday after making steady gains this week.

In the RSX offering, the company plans to sell 885,000 non flow-through shares at C$3.40 each and 1.56 million flow-through shares at C$4.50 each.

A syndicate led by Raymond James Ltd. will underwrite the deal.

Proceeds will be used for the company's summer drilling program and to partially repay its credit facility.

The deal is slated to close March 1.

The company's stock closed unchanged at C$3.80 (TSX Venture: RSX).

RSX is a Calgary, Alta.-based oil and gas company.

Mega Uranium stock dips

In other Canadian resources news, Mega Uranium Ltd.'s stock slipped a day after pricing a C$30.627 million private placement of stock and units.

The company's stock lost 16 cents, or 2.6%, to close at C$5.98 (Toronto: MGA). On Tuesday, the company's stock fell 6 cents to close at C$6.14.

The offering includes flow-through shares offered at C$7.38 each and units of one share and one half-share warrant offered at C$6.15 each.

A syndicate of underwriters led by Westwind Partners Inc. has a greenshoe for up to 200,000 additional flow-through shares and up to 500,000 additional units.

Proceeds from the flow-through shares will be used for Canadian exploration expenses and the proceeds from the units for the development of current projects and for working capital.

Toronto-based Mega is a uranium exploration company focused on properties in Australia, Argentina, Mongolia, Bolivia and Canada.

Enablence plans offering

Elsewhere in Canadian offerings, Enablence Technologies Inc. negotiated the terms of a C$15 million offering.

The terms of the deal were not available at press time Wednesday, but the deal will be placed through a syndicate of agents led by Paradigm Capital Inc.

Proceeds will be used to expand the company's product lines, to accelerate market entry in strategic areas and for working capital.

The deal is expected to close by the end of February.

Based in Ottawa, Enablence designs and manufactures optical components. The company's stock closed down a penny, or 1.56%, at C$0.63 on Wednesday.

Xenonic raises $2 million

Looking to the tech sector, Xenonics Holdings, Inc. wrapped a private placement for $2 million with Gemini Master Fund Ltd.

Gemini purchased 1 million shares in the offering and received class A warrants for 300,000 shares and class B warrants for 300,000 shares. The class A warrants are exercisable at $2.75 each and the class B at $3.25 each, both expiring in five years.

Granite Financial Group, Inc. was the placement agent.

Proceeds will be used for working capital.

On Wednesday, Xenonics' stock jumped 15.98%, or 42.5 cents, to close at $3.085 (Amex: XNN). The stock gained another penny in after-hours trading.

Based in Carlsbad, Calif., Xenonics develops high-intensity illumination products used by the military, law enforcement officers and public safety officials.

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