Concho seeks $300 million for oil assets; Africa Oil wraps tranche; Advaxis secures investment

By Stephanie N. Rotondo

Portland, Ore., July 20 - Concho Resources Inc. announced one of the Tuesday's largest private placements, a $300 million stock sale that would help fund a planned acquisition.

The company is acquiring all oil and gas assets held by Marbob Energy Corp.

Also in the oil and gas arena, Africa Oil Corp. said it had closed the first tranche of a previously announced private placement of stock. The company raised over C$21 million of the planned C$25 million capital raise.

Meanwhile, Advaxis Inc. secured a $7.5 million investment commitment, which the company plans to use for clinical activities. Under the terms of the agreement, the company will sell preferred stock.

Elsewhere, iseemedia Inc. is in process of being taken over by Synchronica plc. As part of the takeover, the company is planning to raise C$7 million via a private placement of subscription receipts.

PharmAthene Inc. announced a $3.9 million registered direct offering of stock and warrants. A company spokesperson said the funds would help cover a shortfall that was a result of a previous stop work order.

And, Western Pacific Resources Corp. is planning a C$2.1 million private placement of units. The funds will be used for drilling work.

Concho seeks $300 million

Concho Resources said it would raise $300 million via a private placement of equity in conjunction with a planned acquisition.

The company will sell 6.6 million common shares in the financing effort.

The proceeds will be used to acquire all oil and gas assets of Marbob Energy Corp. The acquisition price is $1.65 billion, which Concho will pay in cash and securities.

Settlement is expected by Nov. 1, also the closing date of the asset purchase.

The company did not return calls seeking comment on Tuesday.

Concho's stock (NYSE: CXO) gained $3.92, or 7.36%, to $57.21. Market capitalization is $5.24 billion.

Concho Resources is a Midland, Texas-based energy company.

Africa Oil wraps first closing

Africa Oil settled the first tranche of its previously announced C$25 million non-brokered private placement of stock, taking in C$21.4 million.

The deal originally priced at C$20 million on July 9 and was upsized a few hours later.

The Vancouver, B.C.-based company is selling a total of 25 million common shares at $1.00 per share, a 13.04% discount to the July 9 closing share price of C$1.15. In the first closing, the company issued approximately 21.4 million shares.

The second tranche, which will be composed of the remaining shares, is expected to close next week, according to a press release.

Proceeds will be used for work programs at Africa Oil's East Africa properties, as well as for working capital.

The company did not return calls seeking comment on Tuesday.

Africa Oil's equity (TSX Venture: AOI) fell 3 cents, or 2.75%, to C$1.06. Market capitalization is C$74.85 million.

Advaxis inks investment agreement

North Brunswick, N.J.-based Advaxis secured a $7.5 million investment commitment from Optimus Capital Partners, LLC, according to a press release.

Under the terms of the three-year investment agreement, Advaxis will sell series B preferred shares at $10,000 per share. The preferreds are not convertible into common shares, but can be redeemed at any point.

The preferreds carry a 10% annual dividend.

Additionally, the investor will receive a warrant for up to 40.5 million common shares.

"This is our second financing agreement with Optimus," said Thomas A. Moore, chairman and chief executive officer, in the release. "We believe that the first agreement for $5.0 million worked well for Advaxis and its shareholders. This one could be similarly successful."

Proceeds will be used for working capital and for clinical activity, including planned clinical trials for a cancer vaccine.

Advaxis' shares (OTCBB: ADXS) held in at $0.18. Market capitalization is $29.63 million.

iseemedia heralds financing, takeover

iseemedia, a Toronto-based software developer, is looking to raise C$7 million from a private placement of subscription receipts.

The receipts will be issued at C$0.09 each and will convert into units containing one common share and one warrant.

The warrants are exercisable at C$0.12 for three years. The strike price is equal to the July 19 closing share price.

The financing comes as the company has been targeted for a "friendly take-over" by Synchronica plc. Synchronica will purchase all outstanding shares of iseemedia, offering stakeholders 4.03 shares of its own stock for each iseemedia share and 4.03 warrants for each iseemedia warrant.

"The proposed transaction with Synchronica will create a fast-growing mobile messaging player that already counts 44 of the world's mobile operators as customers, including some of the largest carriers worldwide," commented Anthony DeCristofaro, CEO and president of iseemedia, in a press release.

"We are confident that the combined reach of iseemedia and Synchronica will accelerate the company's ability to achieve its goal of market leadership in next-generation mobile messaging for emerging markets."

iseemedia's stock (TSX Venture: IEE) declined by 4 cents, or 33.33%, to C$0.08. Market capitalization is C$5.77 million.

PharmAthene brings direct offering

PharmAthene brought a $3.9 million registered direct offering of stock to market.

The company plans to sell approximately 2.78 million shares at $1.40 per share. Investors will also receive warrants equal to approximately 1.32 million additional shares.

The warrants are exercisable at $1.63 for six years. The strike price is equal to the July 19 closing share price, according to a press release.

Stacey Jurchison, director of corporate communications, told Prospect News that the financing was being done in order to cover a shortfall.

"We had a contract for one of our products that was protested," she explained. Due to the protest, the company stopped working on the product, which resulted in about $3 million in lost revenue, she said.

"This financing helps make up for that lost revenue," she said, adding that work has since been reactivated on the product.

"I think investors understand that we had a need to raise the cash," she said when asked how investors had reacted to the news. "By and large, investors are supportive."

In fact, she said that the deal is currently being done with just one investor, who had previously been an existing shareholder. She declined to comment on whether other investors would be brought in on the deal.

Settlement is expected by July 23.

PharmAthene's equity (Amex: PIP) dropped 15 cents, or 9.20%, to $1.48. Market capitalization is $44.53 million.

PharmAthene is an Annapolis, Md.-based bio-defense company.

Western Pacific plans unit sale

Western Pacific Resources intends to raise C$2.1 million via a non-brokered private placement of units, the company announced.

Western will sell 6 million of the units at C$0.35 each. The units will hold one common share and one half-share warrant.

Whole warrants are exercisable at C$0.50 for 18 months. The strike price represents a 16.27% premium over the July 19 closing share price of C$0.43.

Proceeds will be used for drilling activities at the Mineral Gulch project in Idaho and for working capital.

The Vancouver, B.C.-based company did not return calls seeking comment on Tuesday.

Western's shares (TSX Venture: WRP) closed unchanged at C$0.43. Market capitalization is C$5.55 million.

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