CollaGenex to settle $29 million direct offering; Cambridge Display gets agreements for stock offering

By Sheri Kasprzak

New York, Dec. 21 -CollaGenex Pharmaceuticals Inc. and Cambridge Display Technology Inc. headed up PIPE news Wednesday with direct offerings.

In the CollaGenex deal, the company received agreements for a $29 million direct offering comprised of 2.9 million shares.

As of Oct. 31, the company had 14,488,547 outstanding common shares.

The shares will be issued in two tranches to a group of institutional and other investors. The final tranche is slated to close in early January.

The offering was announced early Wednesday. By day's end, the company's stock had gained 4 cents to close at $11.75.

The shares are being sold under CollaGenex's shelf registration.

Proceeds will be used for research and development, manufacturing, clinical trials and general corporate purposes.

Roth Capital Partners, LLC is the placement agent.

According to CollaGenex's latest earnings report, the company sustained a net loss of $12,398,000 for the quarter ended Sept. 30, compared with a net income of $3,087,000 for the same quarter of 2004.

Based in Newtown, Pa., CollaGenex develops dermatology products.

In the $17.5 million Cambridge offering, the company is gearing up to sell 2,187,500 shares at $8.00 under its shelf registration. The company will also issue warrants for 656,250 shares, exercisable at $12.00 each.

SG Cowen & Co., LLC is the placement agent for the deal, which is expected to close on Dec. 22.

"This funding strengthens our balance sheet at an important time in the development of our strategic plans," said David Fyfe, the company's chief executive officer, in a statement. "We look forward to 2006 with great excitement."

The company's stock slipped 95 cents, or 9.36%, to close at $9.20 on Wednesday.

Based in Cambridge, England, Cambridge Display develops light-emitting polymers used in electronic display products for communications and entertainment purposes.

Volume settles down

In the broader market, one sellsider said PIPE volume has slipped off slightly as the end of the week draws near and the long holiday weekend approaches.

"You mean people are actually working this week," joked the sellsider. "I'd imagine folks are out and are also busy with end-of-year stuff. Not much is getting priced and I'm willing to bet not much more will get done later this week."

Another sellsider agreed that volume has fallen off.

"Some things are out there," he noted. "Seems like a lot of smallish companies."

ProMetic pockets $8.9 million

Looking to the Canadian biotech sector, ProMetic life Sciences Inc. raised $8.9 million in proceeds from an $11.2 million convertible note offering.

The company sold zero-coupon notes to U.S.-based institutional investors priced at 79. The notes are payable in 28 monthly installments are convertible into common shares at C$0.32 each. The investors will receive warrants for up to 20,502,772 shares, exercisable for five years at C$0.35 each.

T.R. Winston was the placement agent.

Proceeds will be used for general corporate purposes.

"This financing allows us to implement the company's reorganization plan in the first half of 2006," said Pierre Laurin, the company's CEO, in a statement. "We anticipate 2006 will be filled with significant achievement from our four operating units and we intend to repay this loan in part or in full within the next eight months. We also welcome the commitment from U.S. financial investors, which will contribute in increase the visibility of the company in the U.S."

Montreal-based ProMetic is a biopharmaceutical company focused on developing technologies to combat pathogens.

The offering was announced late Wednesday, and the company's stock gained 10.94%, or C$0.035, to end the day at C$0.355.

Elsewhere in Canadian biotech offerings, Mistral Pharma Inc. priced a C$1.5 million stock offering of up to 30 million shares.

The shares will be sold on a non-brokered basis to Dynex Capital Ltd. on Jan. 20.

Proceeds will be used for the development of the company's branded and generic product portfolio.

Some of the proceeds will be used to reimburse the C$500,000 debenture, plus interest, held by GlaxoSmithKline. The debenture expired Dec. 21.

The private placement and the transaction with GSK are slated to close on Jan. 20.

Separately, Mistral and GSK agreed to renew their existing contractual agreements related to the licensing of Procise. Mistral agreed to pay royalties to GSK on products using the Savitr technology.

"This private placement and renewed relationship with GSK would enable Mistral to pursue its product development efforts and to improve its technology value proposition," said Bertrand F. Bolduc, the company's CEO, in a statement. "Mistral is also looking forward to [finding] a commercial partner for MIST-B01, its lead branded product and to add new products to the pipeline."

Based in Montreal, Mistral Pharma is a drug delivery company focused on control delivery generic products.

Mistral's stock jumped 16.67%, or C$0.005, on Wednesday to close at C$0.035.

Minera Andes' C$5.4 million deal

In the natural resources sector, Minera Andes Inc. has received an agreement from gold investor Robert McEwen for a C$5,395,159 private placement.

McEwen agreed to buy 15,414,740 units at C$0.35 each.

The units include one share and one half-share warrant. The whole warrants are exercisable at C$0.55 each and expire the earlier of the 15th trading day after Minera Andes receives notice that its stock has traded above C$1.00 per share for more than 20 consecutive trading days or Dec. 20, 2007.

Minera Andes is awaiting approval for a second private placement, under which McEwen agreed to buy 13,156,689 units under the same terms.

Canaccord Capital Corp. is the placement agent for both offerings.

Separately, Minera Andes wrapped a non-brokered deal for C$701,639, selling 2,004,685 units at C$0.35 each. The units include one share and one half-share warrant. The whole warrants are exercisable at C$0.55 each for two years.

Proceeds from all of the deals will be used for exploration on the company's Argentine gold, silver and copper projects.

Based in Spokane, Wash., Minera Andes is a silver, gold and copper exploration company.

The company's stock gained 11.83%, or C$0.055, to settle at C$0.52 Wednesday.

Maxwell stock dips 5.67%

On Wednesday, Maxwell Technologies, Inc.'s stock slid 5.67% after concluding a $25 million convertible debenture offering on Tuesday.

The company's stock dropped 86 cents to close at $14.30 on Wednesday.

On Tuesday, when the deal closed, Maxwell's stock closed down 2 cents, or 0.13%.

The company issued debentures that are convertible into common shares at $19.00 each.

Maxwell is a San Diego-based power backup and energy supply technology company.

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