ISTA secures $36.75 million from stock sale; Organic To Go cooks up $6.35 million offering

By Sheri Kasprzak

New York, June 27 - Now may be the time for biotech companies to get into the PIPE market, according to one sellside market source.

"Drug stocks are doing pretty well, so now seems like a good time," said the sellsider. "There have been a number recently, so that seems like reasonable proof."

In fact, ISTA Pharmaceuticals, Inc. on Wednesday announced plans to seal a $36.75 million offering of stock with a group of institutional investors. The deal includes 5.25 million shares at $7.00 each and is set to close June 29.

Lehman Brothers is the lead agent.

The deal sent the company's stock up 1.19%, or 14 cents, to end at $7.46 on Wednesday (Nasdaq: ISTA).

Volume was low with just 41,462 shares traded compared with the average 143,171 shares.

Located in Irvine, Calif., ISTA is a pharmaceutical company focused on developing treatments for conditions like dry eye, vitreous hemorrhage, diabetic retinopathy, glaucoma and ocular pain.

Other biotech deals

Recently, Targeted Genetics Corp. closed a $19,463,500 private placement of stock, selling 6.7 million shares.

Seattle-based Targeted Genetics is focused on molecular therapies for acquired and inherited diseases.

Also recently, IDM Pharma, Inc. sold $24.85 million in shares in a registered direct offering. That deal included 7.1 million units of one share and one third-share warrant.

Located in Irvine, Calif., IDM is a biopharmaceutical company focused on immunotherapeutic treatments for cancer.

Among the other sizable biotech deals was a $154.35 million stock deal from Lexicon Pharmaceuticals, Inc. In that placement, the company sold 34.3 million shares at $4.50 each.

The Woodlands, Texas-based Lexicon develops treatments for human diseases.

Organic To Go's offering

Elsewhere in PIPE news, Organic To Go Food Corp. is gearing up to settle a $6.35 million stock offering.

The deal includes 3.175 million shares at $2.00 each, and the investors will also receive warrants for 1.27 million shares, exercisable at $2.50 each for five years. The share price is a 3.8% discount to the company's $2.08 closing stock price on Tuesday.

Roth Capital Partners, LLC was the placement agent.

Proceeds will be used for entry into new markets and for expansion into existing corporate catering services, new retail cafes and new outlets.

The company's stock gained 10.1%, or 21 cents, to end the day at $2.29 (OTCBB: OTGO).

"There's a rising tide of interest in organic and sustainable agriculture, but we're filling a bigger gap than food alone," said Jason Brown, the company's chief executive officer, in a statement.

"Organic To Go fills the organic-convenience gap which exists for most people forced to eat lunch outside their home, which usually means fast food that is less than nutritious or delicious. What we do at Organic To Go is make traditional breakfast and lunch selections with natural ingredients and bring it to where folks work, meet and attend universities."

"With the support of this commitment and from our institutional investors, we believe that Organic To Go is properly positioned for long-term sustainable growth," he said.

Based in Seattle, Organic To Go Food operates outlets and retail cafes serving organic food.

Pearl prices C$60.6 million deal

Moving to Canadian offerings, Pearl Exploration and Production Ltd. negotiated a C$60.6 million private placement. The offering was priced as a C$50.5 million offering Wednesday morning but was later upsized.

The non-brokered deal includes up to 12 million shares at C$5.05 each.

Proceeds will be used for potential new acquisitions, an accelerated development program on the San Miguel heavy oil project in Texas, for ongoing development programs in Canada and for working capital.

The stock remained unmoved at C$5.15 on Wednesday (TSX Venture: PXX).

Calgary, Alta.-based Pearl Exploration is an oil and natural gas exploration and development company.

Inspiration plans deal

In other Canadian offerings, Inspiration Mining Corp. priced and then upsized a private placement for C$30.075 million.

The deal priced on June 18 as a C$28.5 million offering.

The upsized deal includes up to 2.3 million units at C$5.25 each and 3 million flow-through shares at C$6.00 each.

The units consist of one share and one half-share warrant with each warrant exercisable at C$6.50 for 18 months.

On Wednesday, the company's stock gave up 6.86%, or 35 cents, to end at C$4.75 (Toronto: ISM).

The deal is being placed through a syndicate led by Dundee Securities Corp.

Proceeds will be used for the development of the company's Langmuir nickel property and for the development of the company's other properties. The rest will be used for working capital.

The placement is scheduled to close on July 5.

Toronto-based Inspiration is a mineral exploration company.

UQM stock slides

A day after completing a $5.2 million private placement, UQM Technologies, Inc.'s stock dipped.

The stock fell by 3.3%, or 14%, to end at $4.10 (Amex: UQM). The stock gained 5 cents, or 1.19%, to settle at $4.24 on Tuesday when the deal closed.

In the placement, the company sold shares at $4.16 each, a slight discount to the $4.19 closing stock price on Monday, to clients of Heartland Advisors.

News of the deal comes as UQM announced it will be participating in Computershare Ltd.'s ProxyAccesss program, which enables its clients to meet all requirements of the Securities and Exchange Commission's notice and access rule.

Based in Frederick, Colo., UQM develops alternative energy technologies.

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