Miravant to raise $15 million in convertible equity line

By Sheri Kasprzak

Atlanta, Oct. 11 - With both Americans and Canadians celebrating different holidays, the private placement market got off to a sluggish start Monday.

Leading the action was an announcement that Santa Barbara, Calif. pharmaceutical company Miravant Medical Technologies plans to raise $15 million through a convertible equity line of credit with existing investors.

The company issued a nonbinding letter of intent to raise the funds Monday.

When all the agreements are made, Miravant can receive up to $1 million a month in convertible debentures for the principal borrowed amounts. Warrants for shares of common stock will be issued and priced at each borrowing.

Funds from the line of credit will be used to complete Miravant's new drug application process for a treatment for age-related macular degeneration.

Miravant is a Santa Barbara, Calif.-based pharmaceutical development company. On Monday, the company's stock closed up $0.08 at $1.30.

Falcon finishes $1.5 million deal

Falcon Natural Gas Corp. wrapped up a $1.5 million private placement, the company said Monday.

In the deal, 1.5 million shares of restricted stock were sold to a private investment group for $1 per share.

The funds, according to a statement from the company, have already been received and will be used for exploration and the development of the company's prospects.

Falcon is a Houston-based natural gas exploration company. Its stock closed down $0.04 Monday at $1.38.

EarthShell issues stock

EarthShell Corp. sold 1.7 million of common shares to one of its licensees, MBS, for $5 million at $3 per share.

Proceeds were used to help fund a debt restructuring.

The company also issued 1.6 million shares of common stock in the restructuring, which eliminated about $8.7 million of debt.

About $2.5 million of $4.8 million in long-term debt held by EarthShell affiliates Biotec and EKI was converted into the 1.6 million shares at a $3 and $4 per share conversion price.

To further reduce its debt, the company made cash payments and issued about $2.4 million in unsecured notes.

EarthShell is a Santa Barbara, Calif.-based food service packaging company. Its stock closed up $0.05 Monday at $2.15.

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