Trubion to close $10.4 million stock sale; Cyberkinetics will wrap $9.99 million PIPE

By Sheri Kasprzak

New York, Oct. 18 - With the Dow Jones Industrial Average climbing past 12,000 during intraday trading Wednesday, PIPE activity took off as well led by two biotech offerings.

"It's not just that the Dow made it to 12,000; it's also the confidence that this puts in the [stock] market," said one sellsider when asked about the impact of the record high for the Dow. "Investors will be more confident, I feel, and companies that are looking for cash will benefit from this with better pricing terms."

The Dow retreated from its intraday high of over 12,000 on Wednesday, gaining 42.66 on the day to close at 11,992.68. The Nasdaq composite index was off by 7.80 to end at 2,337.15, but the Standard & Poor's 500 composite index advanced by 1.91 to settle at 1,365.96.

Specific offerings Wednesday were led by a $10.4 million stock deal from Trubion Pharmaceuticals, Inc. The deal is concurrent with the company's $52 million initial public offering.

In the PIPE, Wyeth Pharmaceuticals has agreed to buy 800,000 shares at $13.00 each, the IPO price.

In the IPO, Trubion plans to sell 4 million shares. The offering has a greenshoe for up to 600,000 additional shares.

Seattle-based Trubion develops treatments for autoimmune disease and cancer.

Cyberkinetics to raise $9.99 million

In other biotech news, Cyberkinetics Neurotechnology Systems, Inc. has secured agreements for a $9,996,000 stock offering.

News of the deal sent the company's stock up 4.29%, or 6 cents, to end the session at $1.46 (OTCBB: CYKN).

Cyberkinetics plans to sell 8.33 million shares at $1.20 each to a group of investors including Medica Venture Partners and Oxford Bioscience Partners.

The investors will receive warrants for 4,167,000 shares, exercisable at $1.40 each.

C.E. Unterberg, Towbin LLC was the placement agent.

Proceeds will be used to launch the company's Andara Oscillating Field Stimulator device in 2007. The rest will be used for research and clinical programs as well as general corporate purposes.

Based in Foxborough, Mass., Cyberkinetics develops neural stimulation, sensing and processing technologies used to assist patients with severe paralysis.

Astrata wraps $4 million deal

Moving to the tech sector, Astrata Group Inc. pocketed $4 million from an offering of series A convertible preferred stock.

The company's stock jumped by 24.7% on Wednesday, gaining 20 cents, to end at $1.01 (OTCBB: ATTG).

Volume of Astrata shares took off on Wednesday with 441,665 shares traded, compared to the average 37,599 shares traded.

A group of investors led by Vision Opportunity Master Fund Ltd. bought 4 million shares of the 8% preferreds, which are convertible on the basis of two common shares per preferred.

The investors received five-year series A warrants for 6 million shares, exercisable at $1.00 each; series B warrants, exercisable at $1.50 each for five years; series J warrants for 5 million shares, exercisable at $0.50 each for one year; series C warrants for 3.75 million shares, exercisable for five years at $1.00 each; and series D warrants for 3.75 million shares, exercisable at $1.50 each for five years.

The other investors include Pointe Capital Ltd., Infomax Co. Ltd. and Wick Trust Ltd.

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

Westminster Securities Corp. was the placement agent.

New York-based Astrata develops location-based telematics used in global positioning systems, wireless communications and geographical information technologies.

Nevsun leads Canadians

Even as gold prices dropped Wednesday, Nevsun Resources Ltd. negotiated a C$25.05 million private placement.

The company plans to sell up to 8.35 million units at C$3.00 each.

The units include one share and one half-share warrant. Each whole warrant is exercisable at C$4.00 each for three years.

The deal is being placed through a syndicate of underwriters led by Haywood Securities Inc., and the syndicate has a greenshoe for up to 1.65 million additional units.

The deal is scheduled to close Oct. 31.

On Wednesday, the company's stock dipped by 3 cents to end at C$3.05 (Toronto: NSU).

Proceeds will be used for pre-production on the company's Bisha project in Eritrea and for general corporate purposes.

Located in Vancouver, B.C., Nevsun is a gold, copper and zinc exploration company.

In other resources offerings, Rockwell Ventures Inc. priced a C$21 million private placement of 42 million units.

The units are comprised of one share and one warrant. Each warrant is exercisable at C$0.60 for the first year, at C$0.80 for the second year and at C$1.00 for the third year.

The deal will be placed through a syndicate of agents led by Westwind Partners Inc. and including Canaccord Adams Inc.

The company's stock gave up a penny on Wednesday to close at C$0.50 (TSX Venture: RVI).

Proceeds will be used to acquire rights in four alluvial diamond properties in South Africa and the Democratic Republic of the Congo. The rest will be used for the repayment of $9.5 million in debt, exploration and development and working capital.

The deal is set to close Nov. 10.

Vancouver, B.C.-based Rockwell is a diamond exploration company.

Lear stock slips after PIPE

In secondary market activity, Lear Corp.'s stock slid Wednesday, a day after the company announced its plans to sell $200 million in stock.

The company's stock fell by 50 cents, or 1.76%, to end at $27.84 (NYSE: LEA). On Tuesday, the stock gained 15.25%, or $3.75, to end at $28.34.

In the placement, the company will sell shares to Icahn Partners LP, Icahn Partners Master Fund LP and Koala Holding LLC at $23.00 each. The price per share is a 6.4% discount to the company's $24.59 closing stock price on Monday.

The deal is expected to close within the next 45 days.

Proceeds will be used for strategic investments and working capital.

Located in Southfield, Mich., Lear is an automotive components supplier.

In other secondary market action, Loral Space & Communications Inc.'s stock slipped Wednesday.

The stock fell by 17 cents, or 0.65%, to close at $26.92 (Nasdaq: LORL). Loral's stock gained 17 cents, or 0.65%, to end at $27.09 on Tuesday when the deal was announced.

The company sold 7.5% preferreds to MHR Fund Management LLC. The preferreds are convertible at $30.15 each.

Loral, based in New York, is a satellite communications company.

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