Santhera sells stake to Bertarelli vehicle; Breaker offers stock; Northwest Bio, Penrice Soda wrap deals

By Kenneth Lim

Boston, Nov. 6 - Santhera Pharmaceuticals Holding AG placed CHF 15.91 million of stock with an investment vehicle linked to the family of Swiss billionaire Ernesto Bertarelli.

Breaker Energy Ltd. announced a C$7 million placement of flow-through shares to raise funds for exploration.

Northwest Biotherapeutics, Inc. took in $1.65 million from an interim financing exercise as the company continues to seek longer-term funding.

Penrice Soda Holdings Ltd. completed a downsized A$5.9 million stock offering but could raise more from a public offering.

Santhera in Bertarelli deal

Santhera Pharmaceuticals said it raised CHF 15.91 million through a private offering of its shares to Ares Life Sciences.

The deal comprised 370,082 ordinary shares at CHF 43 per share. Santhera common stock (SWX: SANN) closed at CHF 47.10 on Thursday, up by 2.39% or CHF 1.10.

Ares is a private equity fund established in 2008 whose lead investor is the Bertarelli family.

Santhera Pharmaceuticals is a Liestal, Switzerland-based pharmaceutical company.

"We are delighted to have Ares invest in Santhera as a new, long term and strategic shareholder," Santhera chief executive Klaus Schollmeier said in a statement. "Ares represents long-standing and successful first-hand experience in the biotechnology sector. Their investment is a significant validation of our business model in orphan diseases, our product portfolio and our growth prospects."

Santhera chief financial officer Barbara Heller added: "The new funds we raise provide the company with additional financial flexibility to ensure the timely progress of our next product candidates and to support the development of our specialist marketing organization for the North American markets.

"This capital increase further secures Santhera's cash position well beyond the planned launch of our lead product, Catena, for the treatment of Friedreich's Ataxia in the United States."

Ares chief executive Jacques Theurilla also said in the statement: "Santhera is our first investment in the biotech sector since the initiation of the fund earlier this year. In our view, Santhera is one of the best-positioned young biopharmaceutical companies in Europe. We are extremely pleased to have been given the opportunity to invest in Santhera and strongly believe in the high quality nature of its product pipeline and the excellence of its management team."

Breaker Energy to raise C$7 million

Breaker Energy plans to offer C$7 million of stock through a private placement.

The company will sell 823,600 flow-through class A common shares at C$8.50 apiece on a bought-deal basis. Breaker Energy common stock (TSX: WAV) fell 12.14% or C$0.85 to close at C$6.15 on Thursday.

Proceeds from the deal will be used for exploration.

Breaker Energy is a junior oil and gas company based in Calgary, Alta.

Northwest Biotherapeutics closes deal

Northwest Biotherapeutics said it placed $1.65 million of 12% promissory notes due April 21, 2009 to existing investor SDS Capital Group SPC, Ltd.

The notes may be prepaid at any time.

SDS also received 50% warrant coverage. The warrants are exercisable at $0.41 for five years. Northwest Biotherapeutics common stock (OTCBB: NWBO) closed unchanged at $0.45 on Thursday.

SDS in October also bought $1 million of 12% promissory notes due April 1, 2009 from Northwest Biotherapeutics.

Proceeds will be used for operating expenses and other obligations and to provide strategic funding for program expansions.

Northwest Biotherapeutics is a development-stage biotechnology company based in Bothell, Wash.

The funding will last into December 2008, Northwest Biotherapeutics said in a press release. The company "remains in an advanced stage of negotiations with several different providers for additional near-term funding and longer term funding, which it hopes to complete by the end of the year," the company said.

"We are very pleased to have completed another interim financing despite severely adverse general market conditions," Northwest Biotherapeutics chief executive Alton Boynton said in a statement. "We are especially pleased to have received a second round of investment from SDS Capital, a well known institutional investor with a highly successful track record of investments in the healthcare sector."

Penrice downsizes deal

Penrice Soda said it raised A$5.9 million through a private placement of shares.

The company sold about 4.69 million shares. The deal was originally announced Oct. 28 to raise up to A$8.5 million.

Penrice Soda common stock (ASX: PSH) closed unchanged at A$1.25 on Thursday.

Australia-listed London City Equities was expected to be a cornerstone investor in the placement, according to a company press release on Oct. 28. The company did not disclose London City's level of participation in its latest statement.

Proceeds will be used to fund the expansion and modernization of Penrice's operations in South Australia.

Osborne, Australia-based Penrice manufactures, distributes and sells soda ash and sodium bicarbonate and mines, distributes and sells quarry and mineral products.

The company plans to raise more capital through a public stock offering to eligible retail shareholders. Details of the public offering have not been announced.

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