Metalico to pocket $36.72 million from stock; Targeted Genetics secures $19.43 million

By Sheri Kasprzak

New York, June 22 - Metalico, Inc., a scrap metal recycling company, led PIPE news to round out the week with a $36.722 million offering.

The company sold 5.246 million shares at $7.00 each.

In pre-market activity, the stock gave up 3 cents by 8:24 a.m. ET. The stock went on to lose 38 cents, or 4.65%, to close at $7.79 (Amex: MEA). The stock gained a penny in after-hours trading.

Proceeds will be used for the acquisitions of two scrap metal recycling companies and for general corporate purposes. The acquisitions are expected to cost $63 million. The costs not covered by the placement will be paid for with the company's current senior secured loan and a new term loan facility.

Canaccord Adams, Inc. was the placement agent.

"This financing will be used to fuel our continued growth, particularly as we expand our geographic footprint and these types of commodity metals we recycle," said Carlos Aguero, the company's chief executive officer, in a statement.

Metalico is based in Cranford, N.J.

Targeted secures $19.46 million

Moving to the biotech sector, Targeted Genetics Corp. penned agreements for a $19,463,500 private placement of stock. The offering is one of several biotech deals announced this week.

In early trading, the stock fell by 4 cents, or 1.44%. By the end of the session, the stock had lost 2.4 cents, or 0.86%, to settle at $2.756 (Nasdaq: TGEN).

A group of institutional and accredited investors plans to buy 6.7 million shares at $2.905 each.

The investors also will receive warrants for 6.7 million shares, exercisable at $3.25 each.

Rodman & Renshaw, LLC was the placement agent.

Proceeds will be used for working capital.

"We are pleased to announce a significant financing with institutional investors," said H. Stewart Parker, CEO of Targeted, in a news release.

"We believe that with the net proceeds from this private placement, we can maintain our current planned development activities and achieve significant progress in the accomplishment of our clinical milestones."

Seattle-based Targeted Genetics is a biotechnology company focused on molecular therapies for acquired and inherited diseases.

Other biotech offerings

"We have seen a number of pretty big deals from biotech," said one sellside market source on Friday. "It's a big PIPE sector and now seems like a good time to be getting deals done, so it's not a big surprise really."

One of the bigger offerings was announced Thursday by IDM Pharma, Inc. The company sold $24.85 million in shares in a registered direct offering.

After the IDM deal was announced early Thursday, the stock began sliding even before the market opened, giving up 15.46%, or 64 cents, by 8:40 a.m. ET. By the end of the day, the stock had given up 27.05%, or $1.12, to close at $3.02 (Nasdaq: IDMI). On Friday, the stock edged up by a penny to close at $3.03.

A group of investors plans to buy 7.1 million units at $3.50 each. The units consist of one share and one third-share warrant. The whole warrants are exercisable at $4.06 each.

The underlying shares will be sold under the company's shelf registration.

The deal is scheduled to close on Monday.

Rodman & Renshaw, LLC was the placement agent.

Proceeds will be used for marketing of the company's lead candidate, MTP-PE to destroy residual cancer cells. The rest will be used for working capital and general corporate purposes.

Located in Irvine, Calif., IDM is a biopharmaceutical company focused on immunotherapeutic treatments for cancer.

Among the other sizable biotech deals announced this week was a $154.35 million stock deal from Lexicon Pharmaceuticals, Inc.

In the deal, which was announced Monday, Lexicon sold 34.3 million shares at $4.50 each to The Invus Group, LLC.

The offering initially sent the company's stock up 7.8%, or 24 cents, to end at $3.32. On Friday, the stock gave up 8 cents, or 2.38%, to end at $3.28 (Nasdaq: LXRX).

Invus has the option to buy up to $345 million in additional shares over four years.

Located in The Woodlands, Texas, Lexicon develops treatments for human diseases.

Another offering came from Micromet, Inc. In that deal, the company sold 9.2 million limited partnership units at $2.7525 each.

News of the deal sent the company's stock down 4.46%, or 12 cents, to close at $2.57 (Nasdaq: MITI) on Tuesday. On Friday, the stock slipped by 2 cents to close at $2.42.

RBC Capital Markets was the lead agent.

Based in Bethesda, Md., Micromet is a biopharmaceutical company focused on developing treatments for cancer, inflammatory diseases and autoimmune diseases.

Quantum plans offering

Elsewhere, Quantum Fuel Systems Technologies Worldwide, Inc. is gearing up to wrap an $18.75 million private placement.

The deal includes 12.5 million shares at $1.50 each to a group of institutional investors. The share price is a 28% discount to the company's $2.09 closing stock price on Thursday.

The investors also will receive warrants for 15 million shares, exercisable at $2.09 each through Dec. 21, 2014.

Based in Irvine, Calif., Quantum is a power-train engineering, system integration and manufacturing company focused on fuel systems and accessories.

Equity Media closes deal

In other news, Equity Media Holdings Corp. wrapped a $9 million private placement of units comprised of one share and two warrants.

The company sold 1,406,250 units at $6.40 each to insiders, institutional investors and accredited investors led by Henry G. Luken III.

The units are comprised of one share and two warrants. Each warrant is exercisable at $5.00.

Proceeds will be used for acquisitions and general corporate purposes.

"This private placement provides us with additional capital for acquisitions that will assist our growth strategy across the Broadcast Station Group, Broadcast Services Division and Spectrum Holdings Division," said Beau Ferrari, the company's chief strategic officer, in a news release.

The company's stock climbed by 5 cents to settle at $4.30 on Friday (Nasdaq: EMDA).

Volume also climbed with 125,911 shares traded compared with the average 59,977 shares.

Equity Media, based in Little Rock, Ark., owns and operates television stations.

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