Enterra Energy gets C$100 million equity line; stocks boost volume slightly

By Sheri Kasprzak

Atlanta, April 27 - Enterra Energy Trust led private placement news Wednesday with its C$100 million equity line.

The company received the line from Kingsbridge Capital Ltd.

Under the terms of the agreement, Enterra may sell trust units to Kingsbridge at 92% of the volume weighted average trading price for 15 consecutive treading days. The term of the agreement is two years and there is a C$12 per trust ceiling.

The first draw is limited to C$10 million and each subsequent draw may for up to 4% of the company's market capitalization with a C$25 million ceiling. There must be 20 consecutive trading days between each draw.

Kingsbridge will also receive warrants for 301,000 trust units, exercisable at C$25.77 each for three years.

"Considering the seesaw oil has been lately, it's interesting they decided on a structure like this," said one Canadian market source. "It's good for them in that they can pick and choose when to draw based on market conditions, so it's a smart move in that respect."

"This commitment allows Enterra to execute its existing business plan" including various planned acquisitions as well as looking at other opportunities, said Reg Greenslade, the company's president and chief executive officer, in a statement.

"It is significant that this commitment will be drawn in tranches and only when the assets to be acquired will be immediately accretive to Enterra. In that regard, we currently anticipate an initial draw in mid 2005 with subsequent draws in the latter part of the year. This arrangement completes a significant component of our business plan. These funds will be utilized as our business plan progresses allowing optimal growth in Enterra on a per-unit basis."

Based in Calgary, Alta., Enterra is an oil and natural gas exploration and development company.

On Wednesday, the company's stock closed down C$1.13 at C$26.92.

In the broader private placement market, sell-siders said small gains in stocks did help volume -- but only slightly.

"We did see a few things out there today, so I'd say things are picking up a bit," said one sell-sider. "Better stocks helped. A lot is hinging on oil and stocks were up because of oil today, so it's hard to say what the week will bring in terms of volume."

The Dow Jones Industrial Average gained 47.67 to close at 10,198.80; the Nasdaq composite index ended up 2.99 at 1,930.43; and the S&P 500 was up

4.64 at 1,156.38.

Oil prices, however, took a dip, losing $2.59 to close at $51.61 per barrel.

Immunomedics raises $36 million

Immunomedics, Inc. completed a $36 million private placement of senior convertible notes with institutional investors Wednesday.

The notes bear interest at 5% annually, are due 2008 and are convertible into common shares at $2.62 each.

The investors will also receive warrants, though the full details of those warrants could not be obtained by press time Wednesday. The warrants are exercisable at $2.98 each beginning the third anniversary of the closing date.

"The funds raised will enable us to move forward independently with registration trials for our lead product, epratuzumab, in moderate and severe lupus patients, serve general working capital purposes, and retire our outstanding 3.25% convertible notes due January 2006," said the company's vice president of finance and chief financial officer Gerard Gorman, in a statement.

"At the same time, and without delaying our trials, we continue to hold discussions with potential partners for epratuzumab in all indications with the aim of secured the best possible agreement for our product and for our shareholders."

The company plans to use $5 million of the proceeds to retire the notes.

Based in Morris Plains, N.J., Immunomedics is a biopharmaceutical company focused on the development of monoclonal, antibody-based products to treat cancer, autoimmune and other diseases.

The company's stock closed down $0.09 at $2.29, but gained $0.19 in after-hours trading.

LAB wraps $5 million deal

LAB International Inc. wrapped a $5 million private placement of a secured convertible term note with Laurus Master Fund, Ltd.

The three-year note bears interest at Prime plus 200 basis points and is convertible into common shares at $0.85 each.

"The conversion price is right in line," said one market source. "I think the terms are good."

Laurus will also receive a warrant for up to 1,770,286 shares, exercisable at $1.37 each for five years.

"Although we benefit from the strong and growing cash flows derived from our LAB research business unit, we still recognize the need to maintain a strong cash position as we advance LAB Pharma's three lead products further into phase II this year," said the company's chief executive officer Halvor Jaeger in a statement.

"This transaction allows us to finance the recent Scantox acquisition and, more importantly, bring our cash position back to pre-Scantox levels. The cash infusion also will give us the required flexibility to aggressively move our late stage product development programs forward."

Based in Laval, Quebec, LAB is a drug development company focused on products dispensed through inhalation to treat ailments like asthma and pain from cancer.

LAB's stock closed unchanged at $0.84 Wednesday.

Advancis releases first-quarter earnings

A day after announcing its $27.06 million private placement of stock, Advancis Pharmaceuticals Corp. released its first-quarter earnings report.

The company reported revenue of $4.6 million, down from fourth-quarter 2004 revenues of $7.1 million, but up from $300,000 revenues from the first quarter in 2004.

The company suffered an $11.4 million net loss for the first quarter compared with a $5.7 million net loss for the fourth quarter of 2004 and a net loss of $10.6 million in the first quarter of 2004.

Based in Germantown, Md., Advancis is a pharmaceutical company focused on developing anti-infective products. On Wednesday, the company's stock dropped $0.14 to close at $3.73 and the company's stock lost another $0.74 in after-hours trading.

Millennium's stock rises

Millennium Cell Inc.'s stock rose Wednesday, a day after the company wrapped a $10 million private placement of convertible preferred stock.

The company's stock gained $0.04 to close at $1.44 and gained another $0.01 in after-hours trading.

On Tuesday, when the deal closed, the company's stock closed down $0.15 at $1.40.

The preferreds are convertible into common shares at $2 each.

Based in Eatontown, N.J., Millennium develops hydrogen battery technologies.

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