Auxilium Pharma prices $53.24 million deal; Southern Pacific Resource plans C$32 million offering

By Laura Lutz

Des Moines, June 8 - Auxilium Pharmaceuticals, Inc. led PIPE market news on Friday with a $53.244 million direct placement of stock.

The company plans to sell 3.672 million common shares under its shelf registration for $14.50 per share.

Banc of America Securities LLC and Thomas Weisel Partners LLC are the placement agents.

Settlement is expected on June 13.

The Malvern, Pa.-based biopharmaceutical company said it will use the proceeds for product development, capital expenditures, working capital and general corporate purposes.

The company's stock gained $1.08, or 7.44%, to close at $15.59 on Friday before dropping 9 cents in after-hours trading (Nasdaq: AUXL).

In Canadian news, Southern Pacific Resource Corp. priced a private placement of units and upsized it later on Friday morning. The placement is now expected to raise C$32,001,500.

The offering will consist of up to 11.035 million units of one share and one half-share warrant at C$2.90 per unit. Each whole warrant will be exercisable at C$4.00 for one year.

The placement originally priced as a C$20 million offering of up to 6,896,552 units.

Canaccord Capital Corp. will lead a syndicate of agents that will also include Blackmont Capital Inc. and Jones, Gable & Co. Ltd.

Proceeds will be used to complete the company's acquisition of an 80% interest in 76 sections of land in the Fort McMurray area of the Athabasca Oilsands fairway.

Southern Pacific is a mineral exploration company based in Calgary, Alta. Its shares gained 3 cents, or 0.95%, to close at C$3.18 on Friday (TSX Venture: STP).

Serengeti pockets C$20 million

Several other Canadian resource exploration companies accounted for much of PIPEs news on Friday.

One, Serengeti Resources Inc., announced it raised C$19,999,200 from two private placements of units.

The company sold 3 million units and 1.6 million flow-through shares through a syndicate of underwriters led by Canaccord Capital Corp. and including Pacific International Securities Inc. and Dundee Securities Corp.

That offering included a fully exercised greenshoe for C$4,000,200.

A non-brokered deal, for C$999,000, included 333,000 units.

Each unit from either deal consists of one non flow-through share and one half-share transferable non flow-through warrant. Each whole warrant will be exercisable at C$4.00 for one year.

Vancouver, B.C.-based Serengeti plans to use the proceeds for exploration and working capital.

The shares closed down 15 cents, or 3.7%, at C$3.90 on Friday (TSX Venture: SIR).

Goldbrook closes C$12.82 million deal

Goldbrook Ventures Inc. settled two private placements of units for a total of C$12,829,562.

Pacific International Securities Inc. acted as agent for the placement of 15 million flow-through units at C$0.40 each and 1.693 million non flow-through units at C$0.35 each.

Gilford Securities Inc. was the agent for the second placement, which consisted of 17,820,034 non flow-through units at C$0.35 each.

Each flow-through unit consists of one flow-through share, one half-share transferable A warrant and one half-share B warrant.

The non flow-through units each consist of one non flow-through share, one half-share A warrant and one half-share B warrant.

Each whole warrant will be exercisable for one non flow-through share for three years, the A warrants at C$0.50 per share and the B warrants at C$1.00 per share.

The Vancouver, B.C.-based mineral exploration company plans to use some of the proceeds to purchase Novawest Resources Inc.'s interest in properties in the Raglan belt.

The remainder of the proceeds will be used for exploration on Goldbrook's own properties in Raglan and for general corporate purposes.

Goldbrook's shares lost 1 cents, or 2.82%, to close at C$0.345 on Friday.

Underworld to raise C$3.25 million

Underworld Resources Inc. plans to complete a private placement of shares for C$3,253,750.

The company intends to sell 3.425 million shares at C$0.95 each.

Proceeds will be used for exploration on the company's projects and for working capital.

Also based in Vancouver, B.C., Underworld is an exploration company with properties in New Zealand and the Yukon.

Its shares dropped 5 cents, or 4.59%, to end at C$1.04 on Friday (TSX Venture: UW).

GoFish negotiates $10.3 million sale

Moving back to U.S. companies, GoFish Corp. arranged a $10.3 million private placement of senior convertible notes and warrants.

Lazard Freres & Co. LLC was the lead placement agent with Merriman Curhan Ford as co-placement agent.

The 6% convertibles will be due in three years. The will be convertible into common stock at $1.60 per share.

Investors will also receive warrants for 3,862,500 shares. The warrants will be exercisable at $1.75 per share from one year after issuance until six years after issuance.

The company will be able to force conversion of a specified amount of the notes at the then-applicable conversion price if the company's common stock trades at or above $2.06 per share for the preceding 20 consecutive trading days. GoFish may also prepay the notes at par plus accrued interest plus other amounts.

If holders convert the notes in the first year, the company will be required to make an additional make-whole payment in cash or stock.

Holders will have the right to put the notes for 30 days after two-year anniversary of issuance.

The offering is expected to close in the next few days.

GoFish is an internet video network with headquarters in San Francisco.

Proceeds from the offering will be used for working capital; program development; closure of the company's acquisition of Bolt, Inc.; and expansion of the company's sales and marketing resources.

The company's stock lost 67 cents, or 28.03%, to finish Friday at $1.72 (OTCBB: GOFH).

Packetport.com plans $10 million of stock

Packetport.com, Inc., another U.S. internet technology company, announced that it will conduct a private placement of equity for up to $10 million, according to an 8-K filing with the Securities and Exchange Commission.

Source Capital Corp. will be the agent.

Terms of the planned offering were not announced.

Packetport.com also announced in the filing that it has signed a letter of intent to be acquired by Yfonglobal, LLC.

Norwalk, Conn.-based Packetport.com is an internet telephony provider.

Its stock gained 2.5 cents, or 125%, to close at $0.045 on Friday (OTCBB: PKPTE).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.