Icagen puts $10 million of stock to Pfizer; Bankers completes part one of sale; Pegasus, Strategic to place

By Kenneth Lim

Boston, Feb. 6 - Biotech company Icagen Inc. placed $10 million of its common stock to development partner Pfizer Inc. in PIPEs news Wednesday, while Canadian oil and gas outfit Bankers Petroleum Ltd. completed the first part of its well-received share sale to a private investor.

Research Triangle Park, N.C.-based Icagen said Wednesday that it will exercise its option to sell Pfizer almost 5.85 million shares of its common stock at the Tuesday closing bid price of $1.71.

The sale represents the second tranche of a $15 million stock purchase agreement with Pfizer and will settle on Feb. 13. The first tranche of $5 million settled on Aug. 20, 2007, when Icagen sold almost 2.7 million shares at $1.86 apiece to Pfizer.

Icagen stock (Nasdaq: ICGN) closed at $1.63 on Wednesday, lower by 5.23% or 9 cents.

The stock purchase agreement is part of a drug development deal between the two companies to explore treatments for pain and related disorders.

Icagen said it will use the net proceeds from the private placement to fund its research and development programs and otherwise for general corporate purposes.

Icagen chief financial officer Richard D. Katz told Prospect News that the placement did not hinge on Icagen meeting any progress milestones.

"I'm confident in saying that the collaboration [with Pfizer] is going well, but I must say that this is not dependent on any targets," Katz said.

Katz, who declined to say if the company will need to seek further financing, said the proceeds of the placement will fund research and development beyond the scope of its current collaboration with Pfizer. The pain treatment program is fully funded by Pfizer, he added.

"We have a number of programs, like epilepsy and asthma, among others, and the proceeds will be used to advance those programs," Katz said.

Bankers closes sale

Calgary, Alta.-based Bankers Petroleum said it completed the first tranche of a C$60 million non-brokered private placement that an analyst said has helped to lift sentiment for the common stock.

Bankers said it sold just over 55.5 million shares at C$0.90 each as part of a deal that priced on Jan. 31. The company said in an earlier release that Sprott Asset Management will buy 55,555,555 shares for C$50 million and Blackrock Investment Management (UK) will buy 11,111,111 shares for C$10 million. Bankers common stock (TSX: BNK) finished at C$0.89, up by 3.49% or C$0.03.

The remainder of the deal is expected to settle on Feb. 15.

Bankers, an oil and gas exploration company, said the proceeds of the deal will be used for exploration, development and general corporate purposes.

Bankers common stock has been receiving interest since late 2007 when management of Calgary, Alta.-based oil and gas explorer Rally Energy Corp. joined the company's board, said Josef Schachter, an analyst at Masion Placements Canada Inc.

"The stock's lifted because if these guys [Sprott and Blackrock] are interested in the management and the field prospects, it must mean that they're on to something."

Schachter explained that the new investors like the management changed at Bankers as well as the prospects lying within its fields in Albania.

"Bankers has heavy oil fields in Albania and because of new management and their investment...currently the recovery there is around 6%," he told Prospect News. "They're bringing in new technology...which can bring recovery up to about 10%. They believe that they have the ability to improve and grow the company" via semisubmersible pumps, secondary recovery methods and steam flood opportunities.

"We've been recommending the story for quite a while to our Canadian investors," Schachter added. "We started recommending them in July at C$0.56, and it's up 60% since then. We have a C$1.35 target for the stock."

Schachter said the current inflow of cash puts Bankers in a comfortable position.

"If Bankers management can get into more deals or more areas to work, then over time they will probably need to raise more funds, but between this placement, their cash reserves and their cashflow, it should keep them busy for quite a while."

Pegasus plans sale

Pegasus Oil & Gas Inc. also announced a C$15.07 million private placement Wednesday.

The deal, comprising 6.85 million flow-through class A shares at C$2.20 each, will help pay for exploration activities, the Calgary, Alta.-based oil and gas exploration company said in a statement.

FirstEnergy Capital Corp. leads the underwriters of the deal, with GMP Securities LP and Blackmont Capital Inc. also part of the syndicate.

The news lifted Pegasus common stock (TSX Venture: POG.A) by 5.56%, or C$0.10, for a close at C$1.90.

Strategic to sell stock

Canada's Strategic Resource Acquisition Corp. said it will sell C$10 million of common stock in a private placement to FNX Mining Co. Inc. of Toronto.

Toronto-based Strategic Resource (SRZ), a base metals mining exploration and development company, said the 3.5 million shares in the deal will be sold at C$2.85 apiece, a 9% discount to its Feb. 5 closing stock price.

Victor Wyprysky, president and chief executive of Strategic Resource, said in a statement that "the investment in SRA by a mining company of FNX's reputation and stature is significant."

"First and foremost, it recognizes the quality and robustness of our Mid Tennessee zinc project," the statement said. "Also, in keeping with our strategic direction, it opens the way for future collaboration as we look to add to our project base once the Gordonsville mining complex has successfully ramped up."

© 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.