MonoGen raises C$7 million; AMDL takes in $2.51 million; ChemGenex gets A$12.93 million from PIPE

By Devika Patel

Knoxville, Tenn., Sept. 17 - Wednesday's PIPE news was punctuated with gratitude as company leaders expressed thanks for investor confidence as firms settled larger-than-expected financings amid an unstable financial climate.

MonoGen, Inc. announced a C$7 million sale of 8% convertible debentures with a single existing investor.

AMDL, Inc. said Tuesday after the close that it took in $2.51 million in a private placement of 10% convertible notes.

AMDL's shares (Amex: ADL) reacted poorly to the news, falling 13.10%, or 19 cents, to close at $1.26 Wednesday.

The drop was part of a larger decline in stock prices nationwide as investors reacted to news of the U.S. government's planned bailout of insurer American International Group Inc., triggering a rise in shareholder anxiety.

On the other side of the globe, Australia's ChemGenex Pharmaceuticals Ltd. settled a A$12.93 million private placement of stock, raising funds for an oncology drug's clinical trials.

MonoGen sees C$7 million

Montreal-based MonoGen said it pocketed C$7 million in a private placement of an 8% convertible debenture. The debenture was sold to a single investor.

"I am pleased that an existing investor decided to add to its position. This speaks to their confidence in the investment opportunity MonoGen currently represents," the company's president and chief executive officer, Ted S. Geiselman, said in a press release.

The debenture matures on the earlier of nine months from the date of issuance and the closing date of a public offering or private placement in excess of an agreed threshold.

The conversion price will be equal to the purchase price paid per MonoGen common share (and warrant, if applicable) in that public offering or private placement, if any.

Proceeds will be used for working capital and general corporate purposes.

MonoGen is a medical device company focused on products to collect samples for medical testing. Its shares (Toronto: MOG) were unchanged, closing at C$0.60 Wednesday.

AMDL manages $2.51 million

AMDL, a biopharmaceutical company in Tustin, Calif., announced after the close Tuesday that it had concluded a $2.51 million private placement of 10% convertible notes on Monday.

The note matures in two years but may mature earlier if the company completes a public offering of at least $25 million.

The placement is convertible into common shares with a conversion price that will be equal to a 50% discount to the closing price of the company's common stock upon the closing of the public offering or, if there is no public offering within six months, then at the closing price of the company's common stock on Feb. 15, 2009, with a floor of $1.20 per share.

Interest will accrue at a rate of 10% per annum, which is payable at maturity.

If the entire principal has not been converted prior to maturity, the noteholder will receive additional "bonus" interest equal to 50% of the remaining principal amount upon maturity.

Upon conversion, investors also will receive five-year warrants exercisable for a number of common shares equal to 50% of the number of shares into which the notes were converted.

The warrants are exercisable at a price equal to 120% of the closing price of the company's common stock on the date of conversion. However, the exercise price of the warrants may not be less than 120% of the five-day volume weighted average price of the company's stock on the closing date of the note offering.

The company sold the senior secured convertible promissory note via agents Jesup & Lamont Securities Corp. and Dawson James Securities, Inc.

"This financing strengthens our cash position and allows us to accelerate key business initiatives. We appreciate the financial support from our investors and their vote of confidence in AMDL's China and U.S.-led operations," AMDL president and chief executive officer Gary Dreher said in a news release.

ChemGenex: A$12.93 million

ChemGenex pocketed A$12.93 million from a private placement of stock, in which it sold 15,216,153 ordinary shares at A$0.85 apiece.

Existing major shareholders Alta Partners, GBS Venture Partners and Merck Sante bought A$6.5 million of the shares.

Proceeds will be applied to the continued clinical trial program for the company's lead oncology drug candidate, omacetaxine.

"We are delighted to have successfully completed this placement given the current financial market conditions," chief executive officer and managing director Greg Collier said in a press release. "The placement will secure the company's financial position as we progress to complete clinical trials and the rolling new drug application submission of omacetaxine to the FDA."

ChemGenex is a biopharmaceutical development company based in Geelong, Australia. Company shares (Australia: CXS) closed unchanged at A$0.795 on Wednesday.

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