StemCells to sell stock to Seaside; Solargen wraps convert offering; InterRent seals placement

By Stephanie N. Rotondo

Portland, Ore., June 30 - StemCells Inc. publicized a registered direct offering of equity on Wednesday.

The company hopes to raise just over $6 million in the financing. A single investor is participating in the deal.

In settled transactions, Solargen Energy Inc. said it had raised $4.12 million via a private placement of convertible preferred shares. The shares were sold to two investors, one of which is a new investor.

And, InterRent Real Estate Investment Trust completed a private placement of trust units, taking in over C$3.5 million.

Hythiam Inc. meantime said it wanted to raise $3.5 million from a registered direct offering of stock and warrants. The company is selling common shares at an over 12% discount.

StemCells to sell stock to Seaside

StemCells, a Palo Alto, Calif.-based clinical-stage biotechnology company, announced a $6.06 million registered direct offering of stock.

Seaside 88, LP was the investor.

The company is selling 7 million common shares at $0.865 per share. The price per share represents a 12.6% discount to the June 29 closing share price of $0.99, according to a press release.

Additionally, the investor has agreed to purchase an additional 5 million shares 12 weeks after the deal closes. The company has the right not to exercise that option.

Proceeds will be used for general corporate purposes, including working capital product development, capital expenditures and other strategic purposes. Settlement is expected by June 30.

The company did not return calls seeking comment on Wednesday.

StemCells' stock (Nasdaq: STEM) dropped a nickel, or 4.82%, to $0.94. Market capitalization is $112.77 million.

Solargen wraps convert sale

Solargen Energy took in $4.12 million from a private placement of series B convertible preferred stock, the company said in a press release.

UMC Capital Corp. and Chinatrust Venture Capital Corp. were the investors.

The Cupertino, Calif.-based company sold approximately 4.12 million of the preferred at $1.00 each. The investors also received warrants equal to another 4.12 million shares.

The warrants are exercisable at $1.00.

"We are delighted to have the continued support of UMC Capital Corp., and welcome Chinatrust Venture Capital Corp. as a value-added investor with large financial resources," said Michael Peterson, chairman and chief executive officer, in a press release.

"Both UMC and Chinatrust share our vision for Solargen to become a leading developer of utility scale solar farms in the United States."

Peterson added that "this infusion of capital comes as we are preparing to enter the next critical stage of development and approval of our 420 MW Panoche Valley Solar Project. The retirement of all of our outstanding bridge loans and its conversion into equity provides the company with valuable financial flexibility and liquidity."

Solargen's shares (Pink Sheets: SLGE) were unchanged at $10.01.

InterRent seals C$3.56 million

InterRent Real Estate Investment Trust completed a non-brokered private placement of trust units, according to a press release.

The company raised $3.56 million in the financing. About 2.49 million of the trust units were sold at C$1.43 each.

The company did not return calls seeking comment on Wednesday.

InterRent's stock (Toronto: IIP.UN) was steady at C$1.35. Market capitalization is C$38.37 million.

InterRent Real Estate Investment Trust is a Toronto-based REIT.

Hythiam seeks $3.5 million

Los Angeles-based Hythiam said it will sell stock and warrants in a registered direct offering aimed at raising $3.5 million.

The company intends to sell 17.5 million common shares at $0.20 per share. The price per share represents a 25% discount to the June 29 closing share price of $0.25.

Investors will also receive warrants good for another 13.13 million shares. The warrants are exercisable at $0.20 for five years.

Proceeds will be used for general corporate purposes and working capital. Settlement is expected by July 6.

The company did not return calls seeking comment on Wednesday.

Hythiam's equity (OTCBB: HYTM) fell 8 cents, or 32.80%, to $0.17. Market capitalization is $12 million.

Hythiam is a provider of behavioral health management services.

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