AsherXino, iSOFT, Oncothyreon get equity lines; DS Smith closes £47.16 million stock placement

By Stephanie N. Rotondo

Portland, Ore., July 7 - Wednesday's PIPE market saw several companies coming out with new equity financing facilities, including AsherXino Corp., iSOFT Group Ltd., Oncothyreon Inc. and Bionovo Inc.

AsherXino said it had secured a $35 million credit line. The funds from the facility will be used to grow the company.

iSOFT meantime said it had signed agreements for an A$30 million line of credit. Those funds will be used to strengthen the company's balance sheet, at least initially.

In the biotechnology arena, Oncothyreon got a $20 million committed equity financing facility and Bionovo said it had secured a $15 million facility. Bionovo's facility will be used for drug development.

Away from that, DS Smith plc announced the completion of a private placement of stock. The company raised £47.16 million in the financing.

And, Northwest Biotherapeutics Inc. said it raised more than $2.5 million via a private placement of restricted common stock.

AsherXino gets $35 million line

AsherXino, a Houston-based international oil and gas exploration company, announced it had secured a $35 million equity line of credit.

Dutchess Opportunity Fund II LP is providing the facility.

The investor will purchase up to $35 million of common stock in AsherXino at a 5% discount to the lowest daily volume-weighted average price of the shares over the five-day trading period following the draw request.

Proceeds will be used to fund the company's "rapid development," according to a press release.

"This new equity line will give us flexible access to capital to support our growth initiatives," said Michael C. Hinton, president of AsherXino, in the release.

"By demonstrating access to capital and the sequential improvement of our financial performance, we are sending a clear and positive message to our partners, shareholders and financial stakeholders."

AsherXino's equity (OTCBB: AXNO) fell 13 cents, or 68.42%, to $0.06.

iSOFT secures A$30 million line

Sydney, Australia-based iSOFT Group inked a deal with YA Global Master SPV Ltd. to provide the company with a A$30 million line of credit, the company said in a press release.

Under the terms of the financing agreement, iSOFT can sell ordinary shares to the investor in tranches up to A$2.5 million over the course of five years. The price per share will be calculated based on the daily volume-weighted average price.

"iSOFT secured the facility in order to provide flexibility in cash management," the company said in the release. "It will initially be used to replenish cash balances drawn down to fund acquisitions and other capital investments undertaken during the 2010 financial year."

iSOFT's stock (Australia: ISF) closed at A$0.18.

iSOFT Group is a health information technology company.

Oncothyreon inks $20 million line

Oncothyreon also negotiated an equity line of credit, securing a $20 million two-year committed equity financing facility from Small Cap Biotech Value Ltd.

The deal was inked July 6.

Oncothyreon will sell stock to the investor at a pre-negotiated discount of 5% to 7% of the daily volume-weighted average of its stock over the 10 trading days preceding the draw request.

Proceeds will be used for general corporate purposes.

Calls seeking comment were not returned Wednesday.

Oncothyreon's shares (Nasdaq: ONTY) gained 4 cents, or 1.22%, to $3.31. Market capitalization is $85.24 million.

Oncothyreon is a Seattle-based biotechnology company.

Bionovo arranges financing facility

Bionovo arranged a $15 million two-year committed equity financing facility with Aspire Capital Fund LLC, according to a regulatory filing and press release.

The deal was inked July 6.

According to the terms of the deal, Bionovo will sell stock to Aspire at a price per share equal to the lesser of the lowest sale price of the stock on the purchase date and the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive trading days ending on the trading day immediately preceding the purchase date. The price per share has a floor of $0.396.

Proceeds will be used to develop the company's drug candidates, as well as for general corporate and working capital purposes.

"We are extremely pleased with the commitment by Aspire Capital to participate in the corporate development of Bionovo, " said Isaac Cohen, O.M.D., chairman and chief executive officer, in the press release. "This agreement provides Bionovo access to capital as needed, demonstrates financial capability to our drug development investigators and to potential partnering candidates.

"Bionovo has historically pursued a financial strategy of raising capital only when that funding is needed," added Tom Chesterman, chief financial officer. "The intent of this agreement is to continue that strategy, to provide a flexible and fair source of committed capital, with a known cost - at market prices - and without warrant overhang. This agreement with Aspire meets that intent and provides the Company flexibility from a timing perspective and favorable terms.

"Given the strength of our current cash position, we expect to utilize this capital source very opportunistically," Chesterman added. "We are pleased to be working with a financial partner the caliber of Aspire Capital as we move forward to the next level of the development of Bionovo."

Bionovo's equity (OTCBB: BNVI) improved by 3 cents, or 8.47%, to $0.42. Market capitalization is $44.94 million.

Bionovo is an Emeryville, Calif.-based developer of novel pharmaceutical products for cancer and women's health issues.

DS Smith wraps stock sale

Packaging and office products wholesaler DS Smith pocketed £47.16 million from a private placement of ordinary shares, the company said in a press release.

The deal was announced early Wednesday and quickly settled the same day via an accelerated bookbuild.

The company sold approximately 39.29 million shares at 120p per share. The price per share represents a 7.08% discount to the July 7 closing share (London: SMDS) price of 128.5p.

Market capitalization is £495 million.

Proceeds will be used to fund the planned acquisition of the Otor Group. If the acquisition falls through, the proceeds will be used for potential investment opportunities and general corporate purposes.

DS Smith is based in Berkshire, England.

Northwest seals $2.65 million

Among other completed private transactions, Northwest Biotherapeutics pocketed $2.65 million from a private placement of common stock.

Participating investors included SDS Capital and Linda F. Powers, chairman of the company.

The company issued restricted common shares at $0.75 each.

The investors also received 10% warrant coverage.

The financing came as the company looked to restructure its balance sheet.

Northwest's shares (OTCBB: NWBO) increased 2 cents, or 2.78%, to $0.74. Market capitalization is $47.33 million.

Northwest Biotherapeutics is a Bothell, Wash.-based development-stage biotechnology company.

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