Mac Filmworks, PolyMedix find keen investors despite rough market; Platinum places with close parties

By Kenneth Lim

Boston, Sept. 24 - Mac Filmworks, Inc. raised $8.16 million in "record time" as the company began its next stage of development as the parent of media group Sahara Media, Inc., the deal's placement agent said.

Meanwhile, PolyMedix Inc. said its recent $4.25 million placement of preferred stock was oversubscribed despite the current lackluster fundraising environment.

Platinum Research Organization, Inc. said it is selling $1.5 million of convertibles to parties familiar with the company.

Mac Filmworks lauds deal

Mac Filmworks placed $8.16 million of stock and warrant units on Sept. 17 in connection with a reverse merger with Sahara Media.

Mac Filmworks sold units of 100,000 common shares and five-year warrants for 100,000 shares at $125,000 per unit. Each warrant is exercisable at $2.50 per share. Mac Filmworks common stock (OCTBB: MFWI) last traded at $4 per share on Sept. 11 before the merger.

John Thomas Financial, Inc. was the agent.

The new Mac Filmworks is a New York-based media company which owns the trademark to the Honey Magazine female-oriented magazine. It plans to relaunch the magazine as an online publication and social network.

"We are thrilled that we have successfully raised funding," Sahara founder and chief executive Philmore Anderson said in a statement. "Following our reverse merger, this raise is the next step towards the execution of our business plan which includes the re-launch of our website, unique online magazine, and social networking product. As we remain focused on our business objectives, we will also be working towards a name change and ticker change to correspond with Sahara Media."

Thomas Belesis, founder and chief executive of John Thomas, also stated: "The completion of this deal represents a remarkable accomplishment in light of the fact that it was done rapidly during the worst economic environment since the Great Depression. Our investment banking division led by Frank Lorenzo along with our superior retail sales force rose to new heights and challenges as they presented this deal to our high net worth clientele. With liquidity and credit virtually nonexistent, our sales force overcame these obstacles in just a few weeks to close this transaction."

"To further illustrate the magnitude of this transaction, investors have the additional opportunity to exercise warrants that have the potential to raise approximately $16 million of additional capital for Sahara Media," Belesis added in the statement. "This shows the confidence that the investors have in both John Thomas Financial and Sahara Media, Inc."

Lorenzo told Prospect News that his firm had been working with Sahara for some time before the current unrest in the capital markets.

"Sahara had been seeking financing through the usual channels but had been unable to find the right partner," he said. "That is where John Thomas Financial came into the picture. Once we saw the company we took it on as an exclusive investment banking relationship with the intent of achieving the long-term goals of the company."

The deal was placed with a broad and "diversified high net worth client base," Lorenzo said. The pricing of the deal was based on market comparables as well as Honey mag's unique assets, he said.

"We took a look at the brand, Honey mag, and saw that it was one of the leading print magazines back when it had its run," Lorenzo said. "We saw that there was a database of 4 million members in the database that fit the demographic so that was an asset in and of itself...We took some valuations of comparable social networking companies, which had a market cap of about $100 million, we looked at the overall sector, the types of valuations that these social networking sites were demanding."

The previous week was a tough period to raise money, Lorenzo acknowledged.

"It wasn't the best time in the marketplace [to raise funds], but we knew that management had the right business plan and that our qualified investors would be interested in this placement," he said. "Our retail base is so strong that we didn't have to bring in a hedge fund or private equity fund...We offered them to accredited private investors that met the requirements. So, with our team of experienced financial consultants, the firm was able to close out the placement in record time, so much so that we even had an overallotment of the placement."

PolyMedix completes deal

PolyMedix placed $4.25 million of preferred stock through an oversubscribed offering.

The company priced each unit of one convertible preferred share and one five-year warrant at $7 per unit. Each warrant is exercisable for one convertible preferred share at $10 per preferred.

The preferreds will automatically convert to 10 common shares, and each warrant will become exercisable for 10 common shares, at an exercise price of $1.00 per share.

Emerging Growth Equities Ltd. was the agent.

Proceeds will be used to continue the clinical development of the company's first two drug candidates, PMX-30063 antibiotic and PMX-60056 anticoagulant reversing agent.

Based in Radnor, Penn., Polymedix develops small-molecule compounds used to treat infectious diseases.

"We greatly appreciate the interest and support of the institutional and individual investors who participated in this placement," PolyMedix president and chief executive Nicholas Landekic said in a statement. "In particular, we are flattered by the participation of both current and new PolyMedix stockholders who invested in this financing round, despite the current turbulent state of the capital markets, and resulted in an over-subscribed offering similar to what we experienced in our July public offering. We believe this interest speaks to the potential of our drug pipeline and the importance of the illnesses and diseases we are combating."

Platinum places to close parties

Platinum Research said it is selling $1.5 million of convertibles to investors that are familiar with the company.

The investors include company executives and EFO Holdings, LP, the former company of Platinum chief technical and supply officer David Owen. Also taking part in the placement was R.T. Vandervilt Co., Inc., the distributor of Platinum's grease products.

The company took $750,000 of the proceeds on Sept. 22 and expects to receive the remainder after meeting other customary conditions.

Dallas-based Platinum Research produces lubricants and coatings.

"The financing is underwritten by people and organizations that are quite knowledgeable about Platinum's progress toward its goal of becoming a revenue- driven company," Platinum president and chief executive John T. (Cork) Jaeger Jr. said in a statement. "We are particularly pleased to have this financial commitment from R.T. Vanderbilt, with whom Platinum has a strong working relationship."

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