Force Protection pockets $152.75 million from stock offering; NexMed raises $8.65 million from PIPE

By Sheri Kasprzak

New York, Dec. 21 - Force Protection, Inc. led PIPE news Thursday with a $152.75 million private placement of its stock.

The offering sent the company's stock up 6.74% on the day after the deal was announced in the morning. The stock gained $1.01 to end at $15.99 (OTCBB: FRPT).

Force Protection issued 13 million shares at $11.75 each to institutional investors through agent C.E. Unterberg, Towbin, LLC.

The shares were sold at a 21.5% discount to the company's $14.98 closing stock price on Wednesday.

"We are excited to announce this arrangement," said chief executive officer Gordon McGilton in a statement. "Force Protection appreciates the confidence evidenced by the investors who have participated in this financing. This working capital will enable us to finish pre-production activities related to our new vehicle line, Cheetah, as well as continue to expand our production capacity and deliver life-saving Buffalo and Cougar vehicles in greater numbers than ever before."

Back in July, Force Protection tapped the private placement market for $41.25 million. The company sold 8.25 million shares at $5.00 each, an 18.7% discount to the company's $6.15 closing stock price on July 21. Towbin was the placement agent for that offering as well.

Also, in January 2005, the company sold series D convertible preferreds for proceeds of $15.8 million. The preferreds were convertible at $0.32 each.

Based in Landon, S.C., Force Protection develops ballistic- and mine-protected vehicles used by the U.S. military.

NexMed's PIPE deal

Moving to the biotech sector, NexMed, Inc. led activity there with the completion of an $8,657,381 private placement of stock with Southpoint Capital Advisors and RA Capital Management.

The offering added 4 cents to the company's stock price on Thursday. The stock ended up 6.35% at $0.67 (Nasdaq: NEXM).

The two investors bought 13.317 million shares at $0.6501 each. The investors received warrants for 5,326,800 shares, exercisable at $0.79 each for five years.

Proceeds will be used for the company's product development programs and for general corporate purposes.

Based in East Windsor, N.J., NexMed develops treatments for nail fungus, sexual disorders and other ailments.

In secondary market action in the biotech sector, Medicure Inc.'s stock advanced Thursday, a day after the company announced a $20.28 million stock sale.

The company's stock gained 6 cents, or 4.76%, to close at $1.32 (Amex: MCU). The stock gave up 9 cents on Wednesday to settle at $1.27 but had gained 2 cents in after-hours trading.

In the placement, a group of U.S.-based institutional investors have agreed to buy shares at $1.30 each. The deal is set to close in the coming days.

Deutsche Bank Securities Inc. was the lead agent.

Proceeds will be used for the ongoing development of the company's lead clinical product, MC-1. The rest will be used for general corporate purposes.

Located in Winnipeg, Man., Medicure develops treatments for cardiovascular disorders.

Favrille stock drops

Also in secondary market news, Favrille, Inc. watched its stock slip on Thursday after obtaining a $40 million committed equity financing facility from Kingsbridge Capital Ltd. on Wednesday.

The stock dropped by 6 cents, or 2.31%, to close at $2.54 (Nasdaq: FVRL). On Wednesday, the stock ended down 13 cents, or 4.76%, at $2.60.

Under the terms of the three-year line, Kingsbridge agreed to buy shares at between 90% and 94% of the volume weighted average price of the company's stock over an eight-day pricing period. The minimum acceptable price per share is the greater of $1.75 or 90% of the VWAP over the eight-day pricing period.

San Diego-based Favrille develops treatments for cancer and immune system disorders.

Nuinsco wraps offering

Moving north of the border, Nuinsco Resources Ltd. sealed a C$15,000,180 private placement of its stock, selling 19.231 million shares at C$0.78 apiece.

The shares were sold through a syndicate of underwriters that included Sprott Securities Inc., Octagon Capital Corp. and Raymond James Ltd.

Proceeds will be used for a feasibility study on the company's Minago nickel project, the completion of a 100% earn-in of the Mel nickel project and the advancement of the Rocher nickel project. The remainder will be used for general corporate purposes.

The stock closed unchanged at C$0.76 Thursday (Toronto: NWI).

Based in Toronto, Nuinsco is a mineral exploration company focused on nickel, uranium, copper, zinc and gold.

In other gold-related offerings, Altair Ventures Inc. priced a C$1,000,200 offering of units.

The deal includes 3.334 million units at C$0.30 each. Each unit is comprised of one share and one warrant. The warrants are exercisable at C$0.50 each for two years.

Canaccord Capital Corp. is the placement agent.

Proceeds will be used for exploration on the company's acquisition of a 70% interest in Greath Panther Resources Ltd.'s San Antonio property in Chihuahua, Mexico.

Closing of the deal is contingent upon the completion of the acquisition.

The stock remained unmoved at C$0.33 Thursday (TSX Venture: AVX).

Vancouver, B.C.-based Altair is a gold and copper exploration company.

Rochester's C$6 million deal

In the energy sector, Rochester Energy Corp. priced a C$6 million offering, even as oil prices slid below $63 per barrel.

The company plans to sell 5 million flow-through units at C$0.60 each and 6 million non flow-through units at C$0.50 each. The units include one share and one warrant with each warrant exercisable at C$1.00 for two years.

Research Capital Corp. is the placement agent.

Rochester is based in Calgary, Alta.

Meanwhile, oil prices gave up $1.06 on Wednesday to close at $62.66 per barrel.

In secondary market action in the energy sector, Plains All American Pipeline, LP's stock edged up just a touch on Thursday, a day after the company sold $300 million in limited partnership units at $48.67 each.

The stock gained a penny to close at $51.15 (NYSE: PAA). On Wednesday, the company's stock dropped by 39 cents to close at $54.14.

Houston-based Plains All American develops and operates natural gas storage facilities.

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