Outlook plans C$6.7 million fundraising; Echo gets debt financing deal; Phytopharm places shares

By Kenneth Lim

Boston, March 25 - Outlook Resources Inc. said it will sell C$6.7 million worth of units to pay for a key manufacturing facility.

Meanwhile, Echo Therapeutics Inc. announced a $2 million private note placement as it seeks to further develop its glucose monitoring treatment.

Phytopharm plc raised £8.6 million for its research and development activities through a private share placement to institutional investors and insiders.

Sterling Resources Ltd. said the C$5 million over-allotment option on its previously announced stock placement was fully exercised, giving it a total of C$40 million in gross proceeds from the sale of shares.

Outlook raises C$6.7 million

Outlook Resources said it is raising C$6.7 million through a non-brokered placement of units.

The deal involves 3,750 units at C$1,800 apiece. Each unit will comprise 10,000 common shares at C$0.06 per share, 10,000 non-transferable warrants and one C$1,200 10% convertible promissory note. Each whole warrant is exercisable at C$0.10 for the first year and at C$0.15 for the second year.

Each convertible has an initial conversion price of C$0.10 per share for the first year and a conversion price of C$0.15 per share in the second year.

Outlook common stock (TSX: OLR) closed at C$0.05 on Tuesday, up by C$0.005, or 11.11%.

The convertibles may be called and put after two years. If, after six months, the company's common shares close at C$0.20 or higher for 20 consecutive trading days, the notes will convert automatically.

Outlook, a Selkirk, Manitoba-based developer of alternative energy solutions, said the proceeds of the placement will be used to acquire and install the equipment necessary to build its Prairie Bio-Cube manufacturing facility, for working capital and to satisfy Outlook's financial commitments.

"We are extremely pleased to have reached this important milestone," Outlook president and chief executive John Bottomley said in a statement. "The opportunity before us represents unprecedented value for our shareholders in terms of both revenue generation and progression towards our goal of producing a cost effective, renewable fuel alternative. Establishing our first Prairie Bio-Cube processing facility with the proceeds of this financing will serve to solidly position Outlook's shareholders in the renewable energy industry as business, government and private citizens seek to find sound solutions to the ever increasing economic and environmental cost of using non-renewable fossil fuels."

Echo Therapeutics sells notes

Echo Therapeutics said it will issue up to $2 million of 10% senior secured notes to Imperium Master Fund Ltd. in a private placement.

The one-year notes will be settled in four equal tranches, with the first lot already closed and the remaining to settle on April 24, May 24 and June 24. Echo Therapeutics has the option not to issue the notes on the scheduled drawdown dates but must notify Imperium at least 10 days before the drawdown date.

Maturity may be extended by another year if Echo Therapeutics completes an equity financing for at least $5 million before Oct. 31, 2008. If that occurs, the coupon on the notes will be reduced to 9%.

Echo Therapeutics has the right to repay the notes' principal in cash, in whole but not in part, prior to maturity at a premium of 1.02 times the unpaid principal plus interest.

Imperium also received warrants for 634,920 common shares exercisable at $2.00 for five years.

Echo Therapeutics stock (OTCBB: ECTE) slipped 3.23%, or $0.05, to close at $1.50 on Tuesday.

Franklin, Mass.-based Echo Therapeutics, a dual platform-enabled, specialty therapeutics and diagnostics company, said it will use the proceeds of the deal to fund its product development programs.

"This strategic debt facility offers us a timely and non-dilutive way to advance our core product development programs in this challenging equity capital market," Echo Therapeutics chairman and chief executive Patrick Mooney said in a statement. "In particular, in the near term, we look forward to initiating additional studies of our Symphony tCGM System for glucose monitoring in the diabetes home use and hospital critical care settings."

Phytopharm completes placement

Phytopharm said it sold £8.6 million worth of common shares in a placement and open offer.

The deal, which was underwritten by KBC Peel Hunt, involved 38.93 million common shares at 22p each. Phytopharm stock (London: PYM) closed at 22.25p on Tuesday, up by 0.25p, or 1.14%.

Phytopharm said it placed 22.85 million shares with institutional and other investors, with the remaining 16.07 million shares going to existing shareholders and directors of the company. Qualifying shareholders had been invited to subscribe for shares on the basis of seven new shares for every 10 existing shares held.

Phytopharm, a Godmanchester, England-based developer of dietary supplements, said it will use the proceeds to further develop and exploit candidates in its clinical pipeline.

Sterling raises C$5 million more

Sterling Resources said the C$5 million greenshoe on its stock placement was fully exercised, bringing the total deal size to C$40 million.

Sterling priced the 16 million-share deal on Feb. 21 at C$2.50 per share, including 2 million shares from the over-allotment option.

Wellington West Capital Markets Inc. led the underwriting.

Sterling, a Calgary, Alta.-based oil and gas exploration company, said it will use the proceeds of the deal for exploration, appraisal and development programs.

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