Cardium secures $2.59 million from stock offering; MPLC raises $10 million from convertible preferreds

By Sheri Kasprzak

New York, March 6 - Cardium Therapeutics, Inc. led PIPE news on Tuesday with word that it intends to close a $21.59 million stock deal.

The offering sent the company's stock down 4.7%, or 15 cents, to close at $3.05 (OTCBB: CDTP).

In the placement, a group of accredited investors has agreed to buy 8.636 million shares at $2.50 each. The share price is a 21.875% discount to the company's $3.20 closing level on Monday.

The investors will also receive warrants for 3,022,600 shares, exercisable for five years at $3.75 each.

The deal is set to close March 9.

Oppenheimer & Co. Inc. was the placement agent.

Proceeds will be used to initiate a phase 3 clinical study on the company's Generx product, to initiate a phase 2b clinical study for Excellarate in the second half of 2007, to accelerate the commercialization of Inner Cool's Celsius Control System and broaden and expand its temperature modulation technology into other medical applications. The rest will be used for working capital.

San Diego-based Cardium develops therapeutic products and devices for cardiovascular, ischemic and related disorders.

Preparing for more deals

Meanwhile, in the broader market, stocks rebounded and market sources said offerings may pick up again this week.

"It really is amazing that it doesn't take a big shift in the market to either shut [PIPE] volume down completely or crank it back up again," observed one market source.

"I think things are going to be okay, volume-wise, looking forward. I'm an optimist. I know there are several sectors with appeal right now."

The market source pointed to technology as a big issuer in the coming weeks.

"There's a lot of value in tech," he added. "Investors are eager to cash in on the gains in the sector."

MPLC's $10 million deal

Moving to the tech sector, MPLC, Inc. has wrapped up a private placement of series D convertible preferred stock for $10,000,800.

The company sold 8,334 shares of the 8% preferreds at $1,200 each.

The preferreds are convertible into 500.04 million common shares at $0.02 each.

Sanders Morris Harris, Inc. was the placement agent.

"We are excited about the completion of the series D private placement," said Burton Katz, the chief executive officer of MPLC, in a news release. "This completes a series of transactions whereby we have acquired and financed New Motion, Inc., a consumer digital entertainment company that is now well positioned to take advantage of projected growth in the mobile entertainment market.

The $20 million in gross proceeds we recently raised in the combined series A, B and D offerings, along with the assets recently acquired from Mobliss, provides us with the capital platform and technology necessary to execute our strategy and leverage the growing trend of consumers who use their mobile devices to interact with media services on the internet."

MPLC's stock dropped 40%, or 4 cents, to end at $0.06 Tuesday (OTCBB: MPNC).

MPLC, based in Irvine, Calif., operates through subsidiary New Motion, Inc., a digital entertainment company that provides digital and mobile products.

Narrowstep raises $7 million

In other technology news, Narrowstep Inc. sealed a $7.11 million private placement of two-year mandatory convertible notes.

The 12% notes automatically convert into common shares at a 10% discount to the securities issued in any subsequent financing of at least $3 million. In the event of the sale of the company before that time, the notes convert into shares of common stock valued at a 10% discount to the price per share paid in the sale of the company.

The investors also received warrants for 3.555 million shares, exercisable at $0.60 each for five years.

Narrowstep may exercise the right to force the cash exercise of the warrants if the stock trades at or above $1.80 per share for at least 20 consecutive trading days.

The company's stock remained unchanged at $0.86 Tuesday (OTCBB: NRWS).

New York-based Narrowstep provides television content over the internet.

ReGen closes $3 million deal

Elsewhere in PIPE news Tuesday, ReGen Biologics, Inc. settled a private placement of series D convertible preferred stock for $3,000,018.

The company issued 71,429 shares of the preferreds at $42.00 each.

The investors also received warrants for 21,429 shares of series D convertible preferred stock, exercisable at $63.00 each.

Each preferred share is convertible into 100 common shares once the company files a certificate of incorporation to make an adequate number of common shares available.

Once converted, the pricing per share and the exercise price of the warrants convert to $0.42 and $0.63, respectively.

ReGen's stock gained a penny to close at $0.49 (OTCBB: RGBI).

ReGen, based in Franklin Lakes, N.J., develops orthopedic products.

ATC settles offering

In one of several offerings closed by staffing companies Tuesday, ATC Healthcare, Inc. completed a $1.5 million placement of class A shares.

Investors bought 5 million of the shares and received warrants for 2.5 million shares, exercisable at $0.45 each for five years.

Bathgate Capital Partners, LLC was the placement agent.

Proceeds will be used for working capital and for the expansion of the company's licensee base through its conversion program.

"We are very pleased that the continuing improvement the company has demonstrated recently is being met with enthusiasm by the investing community," said David Savitsky, the company's CEO, in a statement. "Our goal is to continue ATC's growth and progress towards profitability."

The stock gave up a penny Tuesday to close at $0.33 (Amex: AHN).

Headquartered in Lake Success, N.Y., ATC provides staffing services to hospitals, nursing homes, clinics and other healthcare facilities.

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