Transdel pleased with response to placement; Copper Fox funds feasibility study; Otto raises A$15 million

By Kenneth Lim

Boston, May 15 - Transdel Pharmaceuticals, Inc. said it was pleased that it managed to price its $4 million stock and warrant placement at a premium even in a tough fundraising environment.

Meanwhile, Copper Fox Metals Inc. said it raised C$12.4 million that will be used to complete a feasibility study at its British Columbia project.

Otto Energy Ltd. said it is raising A$15 million through a private placement to insiders, existing shareholders and other institutional investors.

Transdel raises $4 million

Transdel Pharmaceuticals said it was satisfied that its $4 million private placement of stock and warrants priced at a premium to market.

The deal involved 1.8 million common shares at $2.20 per share. Investors also received warrants for 227,272 common shares, exercisable for five years at $4.40 in cash or $5.50 in a cashless exercise.

Transdel common stock (OTCBB: TDLP) rose $0.14, or 9.33%, to close at $1.64 on Thursday.

Transdel, a La Jolla, Calif.-based pharmaceutical company, said the proceeds will be used to fund a Phase 3 clinical program for its Ketotransdel topical pain drug.

"We are very pleased to have closed this round of financing, as we plan to initiate our Phase 3 clinical study in the second quarter of this year," Transdel president and chief executive Juliet Singh said in a statement. "We are quite confident in our Phase 3 clinical study design, especially since our protocol was carefully reviewed by external experts and the U.S. Food and Drug Administration. We believe that Ketotransdel may address a significant unmet medical need for effective topical pain treatment without the gastrointestinal, cardiovascular and other safety concerns associated with oral pain medications."

John Lomoro, Transdel chief financial officer, told Prospect News that response to the offering was outstanding.

"We were very pleased to close this and as you know in the press release, it says it will support our Phase 3 clinical program," he said. "I think it's fair to say we are very pleased with the pricing. This was priced at $2.20, the stock price prior to this was around $1.40 or so, and it closed around $1.50. It's obviously a premium. It's generally been a good response. We're happy to see that it's above the market price, and I think it's been a favorable response."

The placement was considered a success especially given that the current fundraising environment is weak, Lomoro said.

"With regards to raising money and so forth ... it's obviously a tough time right now," he said. "Given where the market is right now, people are not really taking a look at new things and so on. So we're glad to see that people are excited about the company."

The company stuck to a simple deal structure for its fundraising, Lomoro said.

"It's a common stock with warrants deal, something similar to the PIPE that we did in September last year," Lomoro said. "The price is 10% [more] than the one that was done in September, but we obviously like the structure. It was a clean, straightforward deal, good for the company and the shareholders and hopefully for the investors as well, and it doesn't add to our debt."

The company will likely need more money as it pushes its drug to market, but no decision has been made, Lomoro said.

"At March 31 we had about $3.4 million, this gives us about $7 million," he said. "We have received favorable response from the FDA back in April, so we're doing our Phase 3 trials and finalizing that and then we'll decide what the program will look like and as we do that we'll have a better idea of what needs to be done. We'll need additional financing to see the program through ... but we don't know if it's going to be another equity deal. It could be a corporate partnership."

Copper Fox raises for project

Copper Fox said it raised C$12.4 million in a non-brokered private placement of units.

The company sold 20.9 million flow-through units of one flow-through common share and one half-share warrant at C$0.45 per unit for C$9.38 million. The whole warrants are exercisable at C$0.65 for one year.

Copper Fox also sold 7.5 million units of one common share and one half-share warrant at C$0.40 apiece for C$3.01 million. The whole warrants are exercisable at C$0.60 for one year.

Copper Fox common stock (TSX: CUU) closed unchanged at C$0.49 on Thursday.

Copper Fox, a copper mining company based in Calgary, Alta., said proceeds will be used for metallurgical testing, engineering studies, road access, studies of power options and other costs expected to be incurred in the completion of the Schaft Creek Mineral Deposit Feasibility Study as well as general operating purposes.

"The company was proud of the team effort that mobilized the financial support of so many shareholders, both existing and new to Copper Fox under what is indeed a very challenging market," Copper Fox president and chief executive Guillermo Salazar said in a statement. "This financing bodes well for the market's outlook for copper, gold, molybdenum and silver and for the Schaft Creek project itself."

Otto Energy to raise A$15 million

Otto Energy said it plans to sell A$15 million worth of stock in a private placement.

The deal involves 38.46 million shares at A$0.39 each. Otto common stock (ASX: OEL) was unchanged at A$0.46 at the end of trading Thursday.

Otto will issue 14.7 million shares immediately to be sold to "institutional, professional and sophisticated clients" of placement agent Euroz Securities Ltd. Another 22.95 million shares will be issued, subject to approval, to two of the company's existing international investors, while recently appointed director John Jetter will subscribe to 770,000 shares.

Otto, a West Perth, Australia-based oil and gas company, said it will use the proceeds for drilling, costs associated with the company's 50% farm-in to two permits in Po Valley, Italy, site surveys in the Philippines in preparation for drilling and working capital purposes.

"We are very pleased with the resounding support our shareholders and investors have shown," Otto chief executive Alex Parks said in a press release. "This allows us to maintain our growth momentum during the next couple of months, in the lead up to first cash flow from Galoc."

Maple Energy to repay debt

Maple Energy plc said it is selling £12.75 million worth of common stock in a private placement.

The company plans to sell almost 8 million shares at 160p each. Maple common stock (AIM: MPLE) was 1.84%, or 3p, higher at 166p on Thursday.

Maple Energy, a Dublin-based energy company with operations in Peru, said it will use the proceeds to repay debt that was incurred in its acquisition of an additional 3.1% economic and voting interest in Aguaytia Energy, LLC. The proceeds will also be used for capital expenditures associated with a planned ethanol project in Peru.

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