X-Rite expects $155 million; iBioPharma wraps $5 million; Avantogen plans A$1 million

By Devika Patel

Knoxville, Tenn., Aug. 20 - X-Rite, Inc. said it hopes to take in $155 million from a private placement of shares with three investors as the broader PIPE market saw continued issuance from biotech and technology issuers.

Among other issuers in the market, iBioPharma, Inc. said it completed a $5 million stock sale.

Meanwhile, Avantogen Ltd. hopes to raise A$1 million in a private placement of shares, which will be completed in multiple tranches.

X-Rite to raise $155 million

X-Rite announced a $155 million private placement of stock.

The company plans to sell about 28.6 million common shares at $3.50 per share to One Equity Partners for $100 million, about 9.1 million common shares at $3.00 per share to Sagard Capital Partners, LP for $27.2 million and about 9.3 million common shares at $3.00 per share to Tinicum Capital Partners II, LP for $27.8 million.

Proceeds will be used to reduce the company's first-lien debt by about $92 million to an estimated $177 million and its $105 million in second-lien debt by approximately $37 million.

"I am pleased to announce a transaction that addresses X-Rite's capital structure that we believe balances the long-term interests of all our stakeholders," chief executive officer Thomas J. Vacchiano Jr. said in a press release.

"The combination of the right capital structure, with a proven P&L and cash flow model, provides us the needed foundation to refocus one hundred percent of our efforts and attention toward our customers and strategy to lead the transformation of the industry and the business of color."

X-Rite chairman John Utley added in the release that it is important that the company "regains solid financial footing."

The Grand Rapids, Mich., technology company's shares (Nasdaq: XRIT) rose 3.5% Wednesday, or 13 cents, to close at $3.84.

iBioPharma: $5 million

iBioPharma settled a $5 million private placement of shares Wednesday, according to a company press release.

The Newark, Del.-based biopharmaceutical company sold common shares at $2.13 per share. Investors also received an unspecified number of warrants.

"The closing of the private placement will allow the company to begin to implement its business strategy to create and advance our own product candidates applying our platform technology developed by Fraunhofer USA Center for Molecular Biotechnology," iBioPharma chief executive officer Robert B. Kay said in the release.

The company's shares (OTCBB: IBPM) jumped 6.32%, or 6 cents, to close at $1.01 on Wednesday.

Avantogen arranges A$1 million

Australia's Avantogen negotiated a A$1 million stock sale Wednesday, hoping to raise funds to increase its holdings in vaccine maker Hawaii Biotech Inc.

The company will sell 20 million shares at A$0.05 apiece through agent BBY Ltd.

"We are pleased by the support received from the financial community," chief executive officer William Ardrey said in a news release. "The funds will be used to increase Avantogen's holdings in Hawaii Biotech Inc., as the vaccine market is growing in attractiveness. The global vaccine market has seen numerous recent transactions in excess of $300 million, and the major players in the space have announced significant commitments to partnerships and investment in the market.

"Avantogen continues to run very lean corporate operations. This permits us to maximize cash conversion of placements into assets that yield a future return for investors, in this case Hawaii Biotech Inc. shares."

Hawaii Biotech has had success with a West Nile Virus vaccine, which is now in phase 1 trials.

Avantogen itself is working on a Dengue vaccine with phase 1 human clinical trials planned to start later this year. Based in Brisbane, Australia, Avantogen develops and commercializes drugs for the oncology and vaccine markets.

The company's shares (Australia: ACU) stayed steady at A$0.08 on Wednesday.

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