Lev stock climbs on $21 million stock offering; Encysive seals $75 million equity line

By Sheri Kasprzak

New York, Oct. 20 - After a record-breaking week for the Dow Jones Industrial Average, PIPE action picked up after a lull over the summer.

"It's been a real roller coaster this year, but it looks like things are heading back up," said one market source when asked about increasing PIPE volume. "There's a host of reasons, including better stocks, lower oil, improved stocks within sectors that are popular [for private placements]. Biotech seems to be really moving ahead. Tech, which had been kind of disappointing this summer, may be coming back too."

In fact, a biotech company led PIPE news Friday.

Lev Pharmaceuticals, Inc. watched its stock jump by more than 15% after announcing the completion of a $21 million private placement on Friday afternoon.

The stock gained 15.3%, or 13 cents, to end the session at $0.98 (OTCBB: LEVP).

In the placement, the company issued 32,307,692 shares at $0.65 each. The investors received warrants for 9,692,308 shares, exercisable at $0.84 each for five years.

Proceeds from the deal will be used for clinical trials, additional research and development and working capital.

Rodman & Renshaw, LLC was the placement agent.

Based in New York, Lev is a biopharmaceutical company focused on treatments for inflammatory diseases.

Encysive's equity line

Elsewhere in biotech news, Encysive Pharmaceuticals Inc. settled a $75 million equity line of credit with Azimuth Opportunity Ltd.

The stock dipped by 15 cents, or 2.89%, to close at $5.04 (Nasdaq: ENCY). In after-hours trading, the stock dipped by another 5 cents.

When the deal closed Thursday, the stock climbed by 10 cents to end at $5.19.

Under the 18-month agreement, Azimuth may buy shares of Encysive at a discount ranging from 2.875% to 5.875%, based on the company's then-current stock price.

Proceeds will be used for general corporate purposes, including the development and commercialization of the company's products.

Houston-based Encysive develops novel, synthetic and small-molecule compounds used to treat vascular and inflammatory diseases.

Vical stock jumps

In secondary market activity in the biotech sector, Vical Inc.'s stock advanced by 9.91% on Friday, a day after the company wrapped up a $25.1 million registered direct stock offering.

The stock gained 53 cents to end at $5.88 (Nasdaq: VICL) and edged up another 7 cents in after-hours activity. On Thursday, when the deal closed, the stock dipped by 17 cents to close at $5.35.

In the placement, the company sold shares to Temasek Holdings (Private) Ltd. at $5.02 each.

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

Proceeds will be used for development of the company's pandemic influenza DNA vaccine candidate, including phase 1 human clinical testing. The remainder will be used for general corporate purposes.

This direct deal comes just days after Vical wrapped up a $12.55 million direct offering of 2.5 million shares at the same price.

Vical, based in San Diego, develops DNA-based vaccines for infectious diseases and cancer.

Siga stock drops 2.5%

In other biotech news, Siga Technologies, Inc. saw it stock drop by 2.5% on Friday after announcing the pending completion of a $9.08 million stock deal.

The stock fell by 10 cents to close at $3.92, losing another 4 cents in after-hours trading (Nasdaq: SIGA).

The company will issue shares at $4.54 each. The price per share is on par with the company's closing stock price on Wednesday.

Empire Financial Group and The Shemano Group were the placement agents.

New York-based Siga applies viral and bacterial genomics and computational modeling to develop novel products to treat infectious diseases, including products for biological warfare.

Particle raises $11.75 million

Elsewhere in PIPE activity Friday, Particle Drilling Technologies, Inc. settled an $11.75 million private placement of 5 million shares.

The shares were priced at $2.35 each, a 22.9% discount to the company's $3.05 closing stock price on Thursday.

The stock closed unchanged on Friday at $3.05 (Nasdaq: PDRT).

The investors in the deal include Cadence Master, Ltd.; Milfam I, LP; U.S.A. Fund, LLLP; The IBS Turnaround Fund (QP), LP; The IBC Opportunity Fund (BVI), Ltd.; The IBS Turnaround Fund, LP; Greywolf Capital Partners II LP; Greywolf Capital Overseas Fund; Karen Singer; SF Capital Partners Ltd.; LB I Group Inc.; Millennium Partners, LP; Fort Mason Partners, LP; Fort Mason Master, LP; LC Capital Master Fund, Ltd.; Schottenfeld Qualified Associates, LP; Phaeton International (BVI) Ltd.; Phoenix Partners II, LP; and Phoenix Partners LP.

The investors received warrants for 1.5 million shares, exercisable at $3.25 each through Oct. 19, 2011. The warrants become exercisable on April 22, 2007.

RBC Capital Markets and Tejas Securities Group, Inc. were the placement agents.

Proceeds will be used for the hiring of new personnel, the development of a new particle injection system, research and development and general corporate purposes.

Houston-based Particle Drilling is an oilfield service and technology company.

Osisko plans C$5.5 million deal

Heading up Canadian private placement offerings Friday was a C$5.5 million non-brokered deal from Osisko Exploration Ltd.

Osisko plans to sell up to 1 million units of one share and one warrant to EurAsia Holding AG. Each warrant is exercisable at C$6.25 for three years.

The C$5.50 price per share is a 3.5% discount to the company's C$5.70 closing stock price on Thursday.

Proceeds will be used for feasibility work on the company's Malartic project and for development on the project.

The company's stock fell by 14 cents, or 2.46%, Friday to close at C$5.56 (TSX Venture: OSK).

Montreal-based Osisko is a gold exploration company.

In other gold news, Canadian Gold Hunter Corp. priced a C$4.3 million offering of flow-through and non flow-through shares.

The non-brokered offering includes up to 2 million flow-through shares at C$1.50 each and up to 1 million non flow-through shares at C$1.30 each.

Proceeds from the flow-through shares will be used for Canadian exploration expenses, and the rest will be used for working capital.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.