Antigenics looks into additional financing; BlueLine sure of $5 million Iridex stake

By LLuvia Mares

New York, Sept. 6 - After its recent announcement to raise $20.25 million in a direct placement of stock, Antigenics Inc. said its search for investors isn't over yet.

"We've stated that we intended to raise an additional $25 or $30 million, so there is a possibility that we will do additional financing in the near future," said a company insider. "The initial proceeds are $5 million."

The company arranged a $20.25 million direct placement of common stock, series B1 preferred stock and series B2 preferred stock.

Fletcher Asset Management agreed to buy 1,623,377 common shares, 10,000 series B1 preferred shares and 5,250 series B2 preferred shares.

The common shares are priced at $3.08 each. The preferred shares are priced at $1,000 each.

The series B1 preferreds are convertible into $10 million of common stock with the shares priced at the lesser of $3.08 and $0.30 below the then-current market price of the common stock.

The series B2 preferreds are convertible at the lesser of $4.18 and the then-current market price of the common stock. The maximum amount available under the series B2 preferred is 35% of the amount that Fletcher has invested at the time of conversion.

"The bulk of the initial proceeds will be put toward sort of wrapping up the launch activities of our lead product in Russia," he said. "It's been filed for approval but we haven't heard back from the regulatory bodies there. They are also doing pre-launch activities to help with regulatory activities in the Europe with the same product."

Wm. Smith Securities, Inc. is the placement agent.

Antigenics is a New York-based biotechnology company focused on treatments for cancers and infectious diseases.

BlueLine confident in Iridex investment

A BlueLine Partners spokesperson told Prospect News the company was confident in its recent $5 million private placement investment with Iridex Corp.

"We waited four months into the process before we made the investment," said the spokesperson. "We'd been talking to the company and they were looking into making some operational and governing changes and we knew they would most likely need money."

BlueLine bought 500,000 units at $10.00 apiece. Each unit consists of one share of the company's series A preferred stock and warrant for 1.2 common shares.

Each preferred share is convertible into two common shares. The warrants are exercisable at $0.01 per share until Dec. 31.

"We have been working with them on implementing a new operating plan and we are going to name two new people to the board of directors and are active on management issues," he said.

Iridex president stated in a press release Wednesday the equity financing will help the company resolve the liquidity challenges created by its January 2007 acquisition of aesthetics assets of Laserscope.

Danville, Calif.-based BlueLine invests in public micro-cap healthcare and technology companies.

Iridex is based in Mountain View, Calif. and provides laser technology used to treat eye disease and skin conditions.

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