Hollis-Eden procures agreements for $26 million direct stock deal; Dune Energy raises $23.85 million

By Sheri Kasprzak

New York, Feb. 2 - Hollis-Eden Pharmaceuticals, Inc.'s stock lost more than 13% Thursday after it announced it secured agreements for a $26 million direct placement.

The company's stock dove 13.85%, or $1.00, to end at $6.22 and lost another 2 cents in after-hours trading (Nasdaq: HEPH).

Institutional investors, both new and existing, agreed to buy 4 million shares at $6.50 each. The price per share is a 10% discount to the company's closing stock price of $7.22 on Feb. 1.

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

The investors will receive warrants for 800,000 shares, exercisable at $8.75 each for four years.

Rodman & Renshaw, LLC is the bookrunner and Canaccord Adams, Inc. is a placement agent.

Dan Burgess, chief financial officer of Hollis-Eden, did not return a message left for comment on the offering by press time Thursday.

On June 1, 2005 Hollis-Eden raised $10 million from the sale of 1,333,333 shares at $7.50 each.

According to the company's latest earnings report, Hollis-Eden sustained a net loss of $5,661,000 for the quarter ended Sept. 30, 2005, compared with a net loss of $5,586,000 for the same quarter ended Sept. 30, 2004.

San Diego-based Hollis-Eden is a biopharmaceutical company focused on developing immune regulating hormones.

Looking to the energy sector, Dune Energy Inc. settled a $23.85 million stock offering Thursday even as oil prices were knocked down by $1.88 per barrel. Oil prices closed at $64.68 per barrel.

Dune sold 9 million shares at $2.65 each through bookrunner Sanders Morris Harris and agent C.K. Cooper & Co.

After the deal was announced Thursday afternoon, the company's stock lost 5.43%, or 19 cents, to close at $3.31 (Amex: DNE).

"Having built a solid foundation with respect to the acquisition of high quality, high impact leases, coupled with the hiring of talented personnel over the past year or so, the proceeds from this offering will allow us to fast forward our drilling program in order exploit our significant inventory of PUD [public utility district] locations," said Alan Gaines, the company's chief executive officer, in a statement. "In addition, we intend to drill at least two high-impact exploratory wells at Bayou Couba, one of which will be a deep sub-salt test. During calendar 2006, management expects to significantly increase production and cash flow."

Proceeds will be used for drilling on the company's Bayou Couba and Barnett Shale properties. The rest will be used to acquire additional properties in the Barnett Shale from Voyager Partners, Ltd.

On Oct. 3, Dune settled a $6 million private placement of 3,243,243 shares at $1.85 each.

Based in Houston, Dune is an oil and natural gas exploration and exploitation company.

Baseline's $9 million stock deal

Baseline Oil & Gas Corp. said it has settled a private placement for $9 million, selling 8,181,819 shares at $1.10 each.

C.K. Cooper & Co. and Gilford Securities Inc. were the placement agents.

Proceeds will be used to fund the company's 50% share of the $7 million purchase price of oil and gas leases in the New Albany Shale play the company agreed to buy from Aurora Energy, Ltd. The rest will be used for working capital.

The company's stock remained unchanged at $2.50 Thursday (OTCBB: BOGA).

San Antonio-based Baseline is an oil and natural gas exploration company.

Amerityre raises $3.87 million

Amerityre Corp. wrapped a $3.87 million PIPE of 107,500 units at $36.00 each.

Each unit is comprised of eight common shares, a class A warrant and a class B warrant. The price of each common share included in the units - $4.50 - is a 24% discount to the company's closing stock price of $5.94 on Feb. 1. Every class A warrant is exercisable for one share at $5.00 each for three years and each class B warrant is exercisable for one share at $5.50 each for five years.

"Based on the successful completion of this $3.87 million private placement, we are confident that we can meet our operating needs and aggressively pursue our growth plans throughout the 2006 fiscal year," said Richard Steinke, the company's CEO, in a statement released Thursday morning. "Our revolutionary innovations in safer, more environmentally friendly tires are making headway toward acceptance and adoption by the potential strategic partners we are working with, and we are pleased that the private investors participating in this private placement have given us the vote of confidence in our proprietary technologies and their potential to spur our growth."

On Thursday, the company's stock gained 6 cents, or 1.01%, to close at $6.00 (OTCBB: AMTY).

Based in Boulder City, Nev., Amerityre develops technologies used to prevent tires from shredding.

Calvalley prices C$50.7 million PIPE

Heading up Canadian PIPE activity, Calvalley Petroleum Inc. negotiated a C$50.7 million private placement of class A shares, sending its stock up 12 cents, or 1.73%, to end at C$7.07.

The company plans to sell 7.8 million shares at C$6.50 each.

A syndicate of underwriters led by UBS Securities Canada Inc. has an over-allotment option for up to 1.2 million shares.

The offering is slated to close Feb. 21.

Proceeds will be used for exploration and development.

Based in Calgary, Alta., Calvalley is an oil and natural gas exploration company.

Elsewhere in Canada, Sabina Silver Corp.'s stock made slight gains after the company priced a C$5,000,250 private placement on Wednesday.

The stock gained 5 cents, or 3.57%, to end at C$1.45 Thursday. On Wednesday, when the deal priced, the company's stock lost 11 cents to end at C$1.40.

The private placement includes 3,333,500 flow-through units at C$1.50 each. The units consist of one flow-through share and one half-share warrant. The whole warrants are exercisable at C$1.80 each for two years.

A syndicate of placement agents led by Salman Partners Inc. has an over-allotment option for up to 1,333,167 units, exercisable up to two days before closing.

The deal is scheduled to close Feb. 23.

Proceeds will be used for exploration on the company's Hackett River project in Nunavut, as well as other Canadian exploration expenses.

Based in London, Ont., Sabina is a silver exploration company.

NeoRx stock up 3.7%

NeoRx, Inc.'s stock edged up Thursday after announcing the pending settlement of a $65.03 million private placement of stock.

The company's stock gained 3 cents to end at $0.84 Thursday (Nasdaq: NERX).

On Wednesday, when the offering was announced, the company's stock gained 1 cent to close at $0.81.

NeoRx also received a $3.5 million bridge loan.

A group of institutional investors agreed to buy shares at $0.70 each.

The investors will also finance a $3.5 million convertible bridge loan. The loan is convertible at $0.70 each.

Seattle-based NeoRx develops treatments for cancer.

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