PharmAthene plans $5.5 million direct offering; Primary Health wraps deal; Sterling to raise $5 million

By Stephanie N. Rotondo

Portland, Ore., March 24 - PharmAthene Inc., a biodefense company, said Tuesday that it was looking to raise $5.5 million through a registered public offering.

The company will issue more than 2 million shares, as well as warrants, in the deal.

Elsewhere, Primary Health Properties PLC completed a private placement of stock, according to a press release. The equity financing raised £3.69 million for the real estate investment trust.

Sterling Resources Ltd. will issue 50 units in its plan to raise $5 million. The company's lead placement agent also has a greenshoe for up to 75 units, or $7.5 million.

Ord River Resources Ltd. announced a A$1.25 million private placement of shares, while Hertford International Group plc upsized its convertible loan issued to Dexapoint United Corp.

PharmAthene plans offering

PharmAthene announced plans to raise $5.5 million through a registered public offering on Tuesday.

Under the terms of the deal, PharmAthene will issue 2.1 million shares of its common stock at $2.60 per share. Warrants good for 696,295 additional shares will also be issued and are exercisable at $3.00 for five years.

Proceeds will be used for general corporate purposes. Settlement is expected later this week.

PharmAthene's stock (Amex: PIP) dropped 32 cents, or 10.67%, to $2.68. Market capitalization is $72 million.

PharmAthene is an Annapolis, Md.-based biodefense company.

PHP wraps deal

Guildford, England-based Primary Health Properties said it raised £3.69 million through a private placement of stock.

The real estate investment trust sold approximately 1.7 million ordinary shares at 220p per share. No warrants were included in the transaction, according to a press release.

"The board is pleased to have secured additional capital from investors," Harry Hyman, PHP's managing director, said in the release. "Investors continue to recognize the long-term growth potential of Primary Health Properties and its commitment to deliver attractive returns for shareholders.

"PHP operates in one of the most resilient commercial property sectors where it benefits from long lease lengths, strong and growing tenant demand, nil voids and government-backed covenant strength," he continued. "PHP remains a leader in its niche market and benefits from secure cash flows and a strong pipeline of potential deals. We have ambitions to substantially grow the business in the future and believe there are buying opportunities in today's market at historically low valuations. The board looks forward to the future with confidence."

PHP's equity (LSX: PHP) closed at 255p.

Sterling to issue 50 units

Oil and gas explorer Sterling Resources is aiming to raise $5 million via a private placement of units, according to a press release.

The Calgary, Alta.-based company plans to sell 50 units consisting of $100,000 in one-year 15% notes and a warrant good for 20,000 common shares. The warrants are exercisable at C$0.84 for three years and the notes are repayable in three equal installments at the six-, nine- and 12-month marks.

Additionally, Canaccord Capital Corp., the placement agent for the deal, has a greenshoe totaling $7.5 million, or 75 units.

The company expects to close the deal by April 16.

Sterling's equity (Toronto: SLG) gained 2 pennies, or 2.5%, to end at C$0.82.

PIPE pieces

Ord River Resources will issue 69.5 million shares at A$0.018 per share to raise a total of A$1.25 million, the company announced.

The two-tranche deal also includes 3.75 million options exercisable at A$0.05 until March 31, 2012.

Meanwhile, Hertford International Group increased a convertible loan to £1.75 million from £1.25 million.

The 10% loan maturing on Dec. 31, 2011 is convertible into ordinary shares. Until Dec. 31 of this year, conversion price is 13p per share. Through 2010, the conversion price is 15p per share and 17p per share through 2011.

The company also increased the number of warrants associated with the deal. Investors will receive warrants good for 500,000 shares at 20p per share, as well as warrants good for an additional 2.9 million shares at 15p per share. Also, investors will also get a warrant for every four shares converted under the loan at 15p per share.

Ord River's stock (Austrailia: ORD) closed at A$0.02, while Hertford's equity (LSX: HIG) ended at 14p.

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