Progressive Gaming raises $31 million; SyntheMed aims for $6 million; Lev's $35 million to launch new product

By LLuvia Mares

New York, Aug. 14 - Progressive Gaming International Corp. entered a definite purchase agreement Tuesday for a total of $31 million in proceeds by private placement.

"These proceeds will help strengthen our balance sheet by eliminating the vast majority of our debt," a company representative said.

Proceeds from the 6.9 million shares sold at $4.50 each will not only be used to repay debt, but also for working capital. No warrants will be issued in the financing.

The mutual fund-led investment is expected to close Aug. 17.

Las Vegas-based Progressive Gaming is a supplier of integrated casino and jackpot management solutions for the gaming industry.

SyntheMed sells $2.8 million, plans more

Elsewhere in the market, SyntheMed, Inc. completed a private placement Tuesday receiving $2.8 million in proceeds.

The company sold 2.8 million shares of common stock at $1.00 each to a consortium of accredited overseas investors.

Robert P. Hickey, the company's president and chief executive officer, said he chose the London-based agent for the financing - which he did not name -because of its success in completing past PIPE deals.

"They have been very successful in attracting investors to our company," Hickey said.

An additional 3.2 million shares in private placement will also be sold by the company on the same terms.

"If we are successful with the private placement, we will have a gross $6 million," he said.

Hickey said the money will be used to help fund the U.S. launch of REPEL-CV Adhesion Barrier - SyntheMed's new product.

Iselin, N.J.-based SyntheMed is a biomaterials company engaged in the development and commercialization of anti-adhesion and drug delivery products based on its proprietary bioresorbable polymer technology.

Lev upsizes

Lev Pharmaceuticals, Inc. announced Tuesday it had entered definite agreements to sell units in a registered direct offering which will rake in $35 million in gross proceeds.

"We went out to raise $25 million and we settled at $35 million," said a company insider. "It definitely exceeded our expectations."

The company agreed to sell 23.3 million units at $1.50 each to a group of institutional investors. Each unit consists of one share of common stock and warrants to purchase an additional 0.2 shares of common stock for a total of 4.7 million shares if all warrants are exercised.

The exercise price for the warrants will be $1.86 per share. Settlement is scheduled for Aug. 17.

Jefferies & Co., Inc. acted as lead placement agent, CIBC World Markets Corp. was co-lead placement agent and Morgan Joseph & Co. Inc. acted as co-placement agent for the transaction.

The company said the proceeds should be enough to sustain it until the launch of its commercial product Sinryce in early 2008.

New York City-based Lev Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing therapeutic products for the treatment of inflammatory diseases.

Proceeds will be used to help fund the launch of a new product.

Settlement is scheduled for Aug. 17.

Active Power brings in $14 million

In other PIPE news, Active Power, Inc. closed a private placement of $14 million in proceeds Tuesday.

The company sold 10 million shares of common stock at $1.40 each to a group of institutional investors.

The money raised will be used toward the company's growth, expansion and capital purposes.

RBC Capital Markets was the placement agent for the offering. Austin, Tex.-based Active Power is an inventor and manufacturer of an energy-efficient critical power system.

San Francisco-based GeoPetro Resources Co. announced a private placement for $7.71 million.

The company will sell 2,002,599 units at $3.85 each. Each unit consists of one share of common stock and three-tenths of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one share of common stock at a $4.50 per share for five years from the closing date Aug. 13.

Proceeds will be used to fund the company's exploration and development program and for general working capital purposes.

Energy Capital Solutions, LP was the placement agent. GeoPetro is an independent oil and natural gas company.

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