Javelin Pharma rakes in $32 million from stock offering; higher oil won't impact PIPEs, sellsider says

By Sheri Kasprzak

New York, Nov. 3 - New York's Javelin Pharmaceuticals, Inc. closed in on agreements for a $32 million PIPE on Thursday, sending its stock up almost 19%.

A group of U.S.- and Europe-based institutions led by NGN Capital agreed to buy 14,222,222 shares at $2.25 each. The investors will also receive five-year warrants for 711,111 shares, exercisable at $2.25 each.

As of July 27, Javelin had 25,979,986 outstanding common shares.

Rodman & Renshaw, LLC and Riverbank Capital Securities, Inc. were the placement agents.

The offering sent Javelin's stock up 18.93%, or $0.39, to close the day at $2.45.

"This equity financing will enable us to continue the development of our three exciting late-stage product candidates, Dyloject, Rylomine and PMI-150 through pivotal trials," said Daniel Carr, Javelin's chief executive officer, in a statement. "This is another important milestone for our company and after the successful submission of our marketing authorization application for Dyloject in Europe. This financing further validates our position as a leader in the development of product candidates in the pain management specialty pharmaceutical sector."

Following its investment NGN's managing general partner, George Nebgen, will hold an observer seat on Javelin's board of directors.

"Combined with its PMI-150 and Rylomine, Javelin is building an exciting franchise in the moderate-to-severe and breakthrough pain markets," Nebgen said in a statement.

As to its earnings, Javelin posted a net loss of $1,074,947 for the quarter ended June 30, compared to a net loss of $2,827,847 for the same quarter of 2004.

Javelin develops treatments for pain.

Looking to the broader PIPE market, a sellside source said he feels that even though oil prices jumped by more than $2 Thursday, the increase isn't enough to negatively affect private placement volume.

"There's a lot of speculation, from what I'm hearing, that oil will go back down or it won't advance much beyond where it is now," he said. "I don't think it's going to keep issuers out [of the private placement market]."

Oil prices rose $2.03 to close at $61.78 per barrel Thursday even as the major stock indexes made advances as well.

The Dow Jones Industrial Average gained 49.86 to end at 10,522.59; the Nasdaq composite index rose 15.91 to settle at 2,160.22, and the Standard & Poor's 500 composite index edged up 5.18 to finish at 1,219.94.

InfoSearch raises $5.37 million

Moving to the tech sector, InfoSearch Media, Inc. secured agreements from institutional investors for a $5,376,000 private placement.

The company intends to issue 8.4 million shares by Nov. 7 at $0.64 each, a 20% discount to the company's closing stock price of $0.80 on Nov. 2.

The investors will also receive warrants for 4.2 million shares, exercisable at $0.88 each for five years.

RBC Capital Markets is the placement agent.

"This financing provides resources to expand our growth strategy and we are particularly pleased with the quality of institutional investors that subscribed," said George Lichter, the company's chief executive officer, in a statement released Thursday. "With the increasing focus on the importance of internet-specific content, InfoSearch Media is well-positioned to profit from the significant shift in marketing expenditures moving from traditional media to internet-based channels."

After the offering was announced Thursday morning, the company's stock slipped $0.03 to finish at $0.77.

Based in Marina Del Rey, Calif., InfoSearch makes search software used on web sites of small- to mid-sized companies.

SpaceDev's $2.5 million stock deal

SpaceDev, Inc., a company that designs sub-orbital vehicles, announced the conclusion of a $2.5 million PIPE with Laurus Master Fund, Ltd. Thursday.

The Poway, Calif.-based company sold 2,032,520 shares to Laurus at $1.23 each. The price per share was equal to 80% of the 20-day volume weighted average price of SpaceDev's stock ended Oct. 28.

Laurus also received a warrant for up to 450,000 shares, exercisable at $1.93 each through Oct. 31, 2010.

Proceeds will be used for working capital and for a proposed merger between SpaceDev and Starsys Research Corp.

SpaceDev and Starsys entered into a merger agreement on Oct. 26, and under the terms, SpaceDev will repay Starsys's debt and provide its merger partner with working capital.

"This is a very important time for SpaceDev and its shareholders," said SpaceDev chief executive officer Jim Benson in a statement. "Department of Defense spending on space is large and is growing rapidly, and NASA just announced new initiatives open to the private sector. We are positioning SpaceDev to take advantage of these new opportunities through new business development and acquisitions. With this acquisition [of Starsys] and replenishment of our working capital, we are positioning SpaceDev for the future."

The company's stock lost $0.05 to finish at $1.53 Thursday.

Cash Minerals prices C$8 million deal

Looking to Canada, Cash Minerals Ltd. led PIPE news there with a C$8 million offering of flow-through shares and units.

The deal, which is expected to wrap on Nov. 24, includes up to 8,888,889 flow-through shares at C$0.45 each and up to 10 million units at C$0.40 apiece.

The units are comprised of one share and one half-share warrant. The whole warrants are exercisable at C$0.70 each for two years.

A syndicate of placement agents led by Pacific International Securities Inc. has an over-allotment option for up to 2,225,000 flow-through shares and up to 2.5 million units.

Proceeds from the flow-through shares will be used for exploration on the company's coal and uranium assets in Canada. The proceeds from the units will be used for exploration and general corporate purposes.

Vancouver, B.C.-based Cash Minerals is a uranium and coal exploration company.

Cash's stock lost C$0.01 to close at C$0.425 Thursday.

Elsewhere in Canada, Dias Bras Exploration Inc. priced a C$4 million stock offering of up to 20 million shares.

The Montreal-based metals explorer expects that 20% of the offering will be bought by company insiders.

Proceeds will be used for improvements on the Malpaso mill, increasing its capacity by 10%. The rest will be used on mine development and other general corporate purposes.

On Thursday, Dia Bras's stock remained unchanged at C$0.24.

Novavax stock continues to slide

Novavax, Inc.'s stock fell for the second straight session following the pending completion of an $18 million direct stock offering.

The Malvern, Pa.-based biotech company's stock dropped $0.09 on Thursday to close at $3.90.

On Wednesday, when the direct placement was first announced, Novavax's stock lost $0.56 to end at $3.99.

Under the terms of the offering, three institutional investors agreed to buy Novavax shares at $4.30 each.

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

Novavax develops drug delivery and biological technologies and is working on an avian flu vaccine.

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