Rexahn to sell stock; Voxware to raise $2.5 million; Suntech secures loan; Klondex wraps deal

By Stephanie N. Rotondo

Portland, Ore., June 30 - Tuesday saw a larger variety of deals coming to the private placement market, with no one sector dominating.

Rexahn Pharmaceuticals Inc. announced a $4.75 million private placement of equity with "a top-20 global pharmaceutical company," according to a regulatory filing. The deal comes with a license agreement with the investor.

Voxware Inc. likewise announced an equity deal. The company hopes to raise $2.5 million from the transaction.

Suntech Power Holdings Co. said it secured a $50 million convertible loan with IFC. The solar cell maker will use the funds for development.

Among closed transactions, Klondex Mines Ltd. settled a C$3 million stock placement with a single investor. The mineral exploration company plans to use proceeds to fund its Fire Creek Underground Program.

Rexahn plans stock sale

Rexahn Pharmaceuticals will privately place up to $4.75 million of common stock with "a top-20 global pharmaceutical company," according to a regulatory filing.

Under the terms of the deal inked June 26, Rexahn will issue the shares in two tranches, the first bringing in $3.5 million and the second bringing approximately $1.25 million.

The second tranche funding will depend upon the amount needed to complete development of Rexahn's RX-3117 molecule. Upon closing of the second portion, if more funds are needed, then the investor will provide the necessary funds.

The price per share will equal 120% of the closing price of the stock based on the last trading day prior to the purchase date.

The investment comes in conjunction with a research and exclusive license option agreement with the investing company.

"In addition to the strength of our Phase II compounds Archexin, Serdaxin and Zoraxel, the depth of our pre-clinical pipeline is a key differentiator of our company," said Chang Ahn, Rexahn's chairman and chief executive officer, in a press release. "The commitment of a big pharmaceutical partner to collaborate with Rexahn is a major step forward in our strategy and validates the commercialization value of our innovative pipeline. RX-3117 is a highly promising anticancer compound with potential for oral and IV formulation, and this new partnership serves to rapidly advance its development and helps us realize a potentially significant revenue stream."

Rexahn's stock (Amex: RNN) gained $0.0173, or 2.11%, to $0.8373. Market capitalization is $45.4 million.

Rexahn Pharmaceuticals is a Rockville, Md.-based biopharmaceutical company.

Voxware to raise $2.5 million

Voxware, a Lawrenceville, N.J.-based developer of language interface technologies, announced a plan to raise $2.5 million via a private placement of stock.

The company will sell approximately 1.43 million common shares at $1.75 per share. Investors will also receive warrants good for another 142,857 shares, at an exercise price of $2.50 for three years.

"At Voxware we have a number of initiatives in process that continue our tradition of software innovation," said Scott Yetter, CEO of Voxware, in a press release. "This financing enables us to accelerate those initiatives as well as increase funding of our sales and marketing programs."

"As a long-time investor in Voxware, we are pleased with the company's ability to deliver game-changing software to the market for voice-enabled distribution centers," said Donald Caldwell, chairman and CEO of Cross Atlantic Capital Partners Inc., the deal's placement agent. "We are eager to help fund an acceleration of Voxware's product strategy."

Settlement is expected by June 30.

Voxware's equity (Nasdaq: VOXW) closed unchanged at $2.00. Market capitalization is $11.6 million.

Suntech secures convertible loan

Suntech Power Holdings secured a $50 million convertible loan with IFC, according to a press release.

The 5% loan matures in seven years. The debt is convertible into American Depositary Shares at $18.00 per share.

Interest is payable on June 15 and Dec. 15 each year.

"We are pleased that IFC, a world class investment institution that supports sustainable development, has agreed to provide Suntech with a convertible loan of $50 million," said Zhengrong Shi, Suntech's chairman and CEO, in the release. "These additional funds will strengthen Suntech's financial position and support our transition to the high efficiency Pluto technology as we progress towards our goal of providing grid parity solar solutions."

"IFC is pleased to support Suntech, one of the leaders in the solar PV industry," added Randall Riopelle, manager of IFC's global manufacturing and services department. "We are pleased to be partnering with a company focused on developing best in class technology and which has demonstrated a firm commitment to the highest corporate responsibility standards. We look forward to working with Suntech as solar energy becomes an increasingly important source of renewable energy for China and for the world."

Suntech's stock (NYSE: STP) increased 20 cents, or 1.13%, to $17.97.

Suntech Power Holdings is a Wuxi, China-based manufacturer of solar cells.

Klondex wraps equity deal

Klondex Mines took in C$3 million from a private placement of common shares with China Mineral United Management Ltd.

The company sold approximately 1.71 million shares at C$1.75 per share.

"We are pleased to welcome China Mineral United Management as a long-term investor in our company and provide the funding required for the development of our Fire Creek deposit as we anticipate the near-term receipt of permits required to initiate our underground program," stated William Solloway, Klondex's president, in a press release. "This funding enables critical operations to proceed at the same time as our special committee of the board and financial advisors develop and review potential strategic alternatives to the current Silvercorp offer."

Also, China Minerals has the right to appoint one director to Klondex's board. China Minerals also has the option to participate in the next $20 million of future financings, for a maximum of 50% of each issuance.

Both have the right to appoint a director and to participate in future deals will expire should Klondex becomes a non-reporting issuer.

Klondex's stock (Toronto: KDX) fell 13 cents, or 6.22%, to C$1.96. Market capitalization is C$52.9 million.

Klondex Mines is a Vancouver, B.C.-based gold exploration company.

BNK comes to market

Elsewhere in the PIPE market, Calgary-based BNK Petroleum Inc. orchestrated a C$5.1 million private placement of equity, the company announced.

The company will sell 17 million common shares at C$0.30 per share.

Proceeds will be used for general working capital and for debt repayment. Settlement is expected by July 15.

BNK's shares (Toronto: BKX) dropped two pennies, or 5.00%, to C$0.38. Market capitalization is C$25.3 million.

Among completed deals, Cel-Sci Corp. closed on $5.85 million of its registered direct offering of units.

The deal originally priced at $5 million on June 24.

The Vienna, Va.-based company issued approximately 14.61 million units containing one common share and 0.67 warrants. The units sold at $0.40 per unit and each whole warrant is exercisable at $0.50 for five years.

Cel-Sci's stock (Amex: CVM) gained $0.0079, or 1.97%, to $0.4081. Market capitalization is $53.2 million.

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