Iomai pockets $31.8 million from unit offering; Antares raises $10 million from loan

By Sheri Kasprzak

New York, March 2 - Two drug-delivery technology developers led PIPE news to end the week, headed up by a $31,883,838 offering from Iomai Corp.

The company sold 6,291,828 units of one share and two warrants for a total of seven-tenths of a share.

The first warrant is exercisable at $5.25 each through March 2, 2012 and the second at $5.25 each for four months after the registration statement is effective.

On Friday, the stock advanced by a penny to close at $5.01 but lost 13 cents in after-hours trading (Nasdaq: IOMI).

Cowen & Co., LLC was the placement agent.

The investors in the deal included New Enterprise Associates 10 LP; RA Capital Biotech Fund, LP; RA Capital Biotech Fund II, LP; Visium Balanced Fund, LP; Visium Balanced Offshore Fund, Ltd.; Visium Long Bias Fund, LP; Visium Long Bias Offshore Fund, Ltd.; Atlas Master Fund, Ltd.; Lagunitas Partners LP; Gruber & McBaine International; TTEES Hamilton College; The Wallace Foundation; Jon D. & Linda W. Gruber Trust; Lindsay Gruber Dunham; Jon D. Gruber TTEE FBO Jonathan Wyatt Gruber Trust; J. Patterson McBaine; SF Capital Partners Ltd.; Fort Mason Master, LP; Highbridge International LLC; Capital Ventures International; UBS O'Connor LLC FBO O'Connor PIPES; Corporate Strategies Master Ltd.; Cranshire Capital, LP; MPM Bioequities Master Fund LP; MPM Bioequities Investors Fund, LLC; Red Abbey Venture Partners, LP; Credit Suisse Securities (USA) LLC; Otago Partners, LLC; Hudson Bay Fund, LP; Hudson Bay Overseas Fund, Ltd.; and Mallette Capital Biotech Fund, LP.

Proceeds will be used for working capital.

Iomai is no stranger to the PIPE market. The company sold $10 million in shares to New Enterprise and Essex Woodlands Health Ventures V, LP in October at $4.38 each.

Based in Gaithersburg, Md., Iomai develops transcutaneous vaccinations.

Antares gets loan

Another drug-delivery technology company, Ewing, N.J.-based Antares Pharma, Inc., announced the terms Friday of a $10 million loan agreement with warrants.

MMV Financial, Inc. funded the offering, which will be settled in two tranches of $5 million each.

MMV received warrants for 640,000 shares in the deal, exercisable at $1.25 each. Of the warrants, the exercise of 240,000 is contingent upon the drawdown of the second tranche.

Antares has also conducted a PIPE before.

In February 2006, the company sold 8.77 million shares at $1.25 each for proceeds of $10,962,500.

Avanex raises $20 million

Moving to the tech sector, Avanex Corp. sealed a $20 million stock offering Friday.

A single institutional investor bought 10,795,056 shares at $1.8527 each. The investor received warrants for 2,698,764 shares, exercisable at $2.1452 each through March 1, 2011.

Banc of America Securities LLC was the placement agent.

In other news, Avanex entered into a share purchase agreement with Global Research Co., a French company, and Didier Savage. Avanex intends to divest its III-V Indium Phosphide and Gallium Arsenide semiconductor fabs and associated product lines in Nozay, France, and transfer 90% of the share capital and voting rights of subsidiary Avanex France to the two purchasers at €1.00. The transaction is set to close in the second quarter.

Based in Fremont, Calif., Avanex develops fiber optic products.

Centillion leads Canadians

North of the border, Centillion Industries Inc. priced a C$40 million offering of subscription receipts connected to its planned acquisition of working interests in oil and gas properties in Texas.

The offering comes as oil prices dipped Friday, losing 36 cents to close at $61.64 per barrel.

In the placement, the company intends to sell 114,285,714 receipts at C$0.35 each.

The receipts are exchangeable for units of one share and one half-share warrant once the company completes its acquisition of a 27% working interest in oil and gas properties in the Palo Duro basin of Texas. Each whole warrant is exercisable at C$0.50 for two years.

The offering is being placed through a syndicate of agents led by Canaccord Adams Ltd.

Centillion expects the offering to close March 21.

Proceeds will be used for costs associated with the acquisition of the working interest in the oil and gas properties.

The company's stock closed unchanged at C$0.50 on Friday (TSX Venture: CID). The stock has not moved since Feb. 6.

Vancouver, B.C.-based Centillion is an oil and natural gas explorer.

American Creek's C$2 million deal

In other Canadian resources offering, American Creek Resources Ltd. wrapped up a C$2 million non-brokered private placement of 952,380 units.

The units - of one flow-through share and one warrant - were sold at C$2.10 each to MineralFields Group LP. Each of the warrants is exercisable at C$5.00 through March 2, 2008.

Proceeds will be used for exploration expenses on the company's Canadian mineral properties in British Columbia.

On Friday, the stock gained 5 cents to close at $2.59 (TSX Venture: AMK).

Based in Raymond, Alta., American Creek is a gold and silver exploration company.

Pico stock slips

A day after announcing a $104.45 million private placement, Pico Holdings, Inc.'s stock fell by 2.2%, or 80 cents, Friday.

The stock closed at $38.08 Friday. On Thursday, when the deal was announced, the stock lost 7.65%, or $3.22, to end at $38.88 (Nasdaq: PICO).

The company plans to sell shares at $37.00 each to a group of institutional investors.

ThinkEquity Partners LLC is the placement agent.

Pico, based in La Jolla, Calif., acquires businesses that are identified as undervalued.

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