Adventrx to seal $40 million direct sale; Avanir brings $15 million

By Sheri Kasprzak

New York, Nov. 3 - Two biotech firms led PIPE news to round out the week, both with direct stock offerings.

Adventrx Pharmaceuticals, Inc. said it is set to wrap a $39,998,750 direct placement of its stock.

A group of institutional and other investors has agreed to buy 14,545,000 shares at $2.75 apiece. The price per share is a 10.4% discount to the company's $3.07 closing stock price on Thursday.

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

ThinkEquity Partners LLC is the bookrunner for the deal, which is scheduled to close Wednesday.

After the deal was announced Friday morning, Adventrx's stock gave up 9.12% on the day, or 28 cents, to close at $2.79 (Nasdaq: ANX). The volume of Adventrx's stock traded Friday skyrocketed with 1,440,200 shares traded. On average, there are 340,150 shares traded daily.

The company's stock began dropping early, giving up 2.28% at 9 a.m. ET and falling another 8.47% by 11 a.m. ET.

San Diego-based Adventrx develops treatments for cancer and infectious diseases.

Avanir's direct deal

Another company announced a direct placement of its stock. Avanir Pharmaceuticals, Inc. said it will close next week a direct placement for $15,005,250.

The company plans to sell 5,265,000 class A shares at $2.85 each to a group of institutional investors. The shares are being sold under the company's shelf registration.

The investors will receive warrants for 1,053,000 shares, exercisable at $3.30 each for six months.

Rodman & Renshaw, LLC is the placement agent for the deal, which is scheduled to close Monday.

The stock dipped by 6.06%, or 20 cents, to end at $3.10 and gave up another 3 cents in after-hours trading (Nasdaq: AVNR).

Volume of Avanir shares traded Friday was through the roof with 11,483,700 shares traded, compared with the average 1,090,880.

Based in San Diego, Avanir develops therapeutic treatments for central nervous system disorders.

Energy Fuels upsizes unit deal

Looking to Canadian offerings, uranium deals continued in popularity as Energy Fuels Inc. increased the size of a previously announced PIPE to C$30.1 million from C$10.0 million.

One market source based in Vancouver, B.C., said the price of uranium has been climbing to record levels after a flood at Cigar Lake, a property held by Cameco Corp., earlier this week.

"Uranium, at least for now, has experienced a cut in supply so the price is getting higher and higher," he said.

In the Energy Fuels deal, the company will sell 7,142,857 units of one share and one half-share warrant at C$1.40 each in the first tranche. In a second tranche, the company plans to sell 10.05 million units at C$2.00 each.

The whole warrants issued in both tranches are exercisable at C$2.20 each for 18 months, increased from the originally announced C$1.75 warrant strike price.

The placement priced Oct. 24.

On Friday, the company's stock gave up 6 cents, or 2.78%, to close at C$2.10 (TSX Venture: EFR).

The deal is being placed through a syndicate of agents led by Wellington West Capital Markets Inc. The placement is expected to wrap up on Nov. 23.

Proceeds will be used for mine development and production, property acquisitions, mill engineering and licensing, exploration and general corporate purposes.

Toronto-based Energy Fuels is a uranium and vanadium exploration and production company.

Continental stock jumps

A day after announcing RAB Special Situations (Master) Fund Ltd. will participate in a C$10 million PIPE, Continental Precious Metals Inc. saw its stock climb for the second straight session.

On Friday, the stock advanced by 12 cents, or 7.02%, to end at C$1.83 (TSX Venture: CZQ). The stock gained 10.32% on Thursday to close at C$1.71.

RAB, Continental's majority shareholder, said it will purchase a number of units in order to maintain its current 29.2% interest in the company.

Continental plans to sell units of one share and one half-share warrant at C$1.30 each in the offering, which is being placed through agent Max Capital Markets Ltd.

The deal is set to close Nov. 15.

News of the offering comes just as Continental announced that is has begun drilling at its Guorbavare license, which includes the Pleutajokk uranium deposit.

Toronto-based Continental is a uranium and metals exploration company.

In other uranium news, Bayswater Uranium Corp.'s stock closed unchanged at C$1.30 Friday after closing an C$8 million unit offering Thursday.

In the placement, the company sold units of one share and one warrant at C$1.05 each.

On Thursday, when the deal closed, the stock fell 8.45%, or 12 cents, to end at C$1.30.

Vancouver, B.C.-based Bayswater is a uranium exploration company.

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