Private placement volume gets boost from stocks; Point plans $16.4 million direct offering

By Sheri Kasprzak

Atlanta, March 1 - As stocks climbed on sinking oil prices, private placement volume got a slight boost, according to sell-side sources.

"It definitely looks like volume is better today," said one sell-sider. "We're seeing more deals and we're seeing bigger deals, so I think the higher stocks are helping us out a little."

In Canada, however, lower oil prices kept some energy issuers out of the market for the day, sources there said.

"Issuers are probably just waiting for the oil stocks to get a little better," said one Canadian sell-sider.

The Dow Jones Industrial Average closed up 63.77 at 10,830; the Nasdaq composite index ended the day 19.53 higher at 2,071.25 and the S&P 500 closed up 6.81 at 1,201.41.

Oil prices edged down $0.07 at $51.68 per barrel on Tuesday.

Leading news Tuesday was Point Therapeutics, Inc., which announced its plans to raise $16,425,000 in a direct placement.

The company plans to sell 3.65 million shares at $4.50 each.

SG Cowen & Co. LLC and RBC Capital Markets are the placement agents in the deal.

The shares are being sold under Point's shelf registration.

Based in Boston, Point Therapeutics is a biopharmaceutical company focused on developing treatments for cancers, diabetes and other diseases.

On Tuesday, the company's stock closed down $0.65 at $4.65.

NationsHealth raises $15 million

NationsHealth, Inc. completed a $15 million private placement of convertible promissory notes.

The seven-year notes bear interest at 7.75% annually and are convertible into common shares at $6.56 each.

"NationsHealth selected the convertible notes proposed by MHR after evaluating several different financing options," said Glenn Parker, the company's chief executive officer in a statement. "Among the numerous advantages of the MHR proposal are a conversion price at a significant premium to current market, an extended maturity date and a balloon principal payment. We are pleased with this strong show of support by MHR, already one of the largest shareholders of the company."

Based in Sunrise, Fla., NationsHealth provides medical products and prescription discount services. The proceeds from the private placement will be used to expand the company's current business lines and to provide the company with capital to support new initiatives.

NationsHealth's stock closed up $0.11 at $5.55 on Tuesday.

Helix closes $2.32 million offering

Helix BioMedix wrapped a private placement for $2,322,750, the company said.

The company issued 1,548,500 shares at $1.50 each.

The investors in the offering also received warrants for up to 125,000 shares, exercisable at $1.50 each for five years.

"We are grateful for the continued support of our investors and the confidence they have shown in our business strategy," said R. Stephen Beatty, the company's president and chief executive officer, in a statement. "In recent months, we have made significant progress in both our consumer and pharmaceutical development programs. Our proprietary peptides are being tested for a variety of cosmetic and consumer good applications including anti-wrinkle and anti-acne, and we are working to bring these value-added product candidates to market.

"In addition, we recently announced a research collaboration with Smith & Nephew, a world leader in advanced wound management, to help further development for HB50, a topical anti-infective for the pharmaceutical market. The funds raised will help us to take advantage of these exciting opportunities."

Based in Bothell, Wash., Helix is a biotechnology company focused on developing and commercializing bioactive peptides for use as anti-infectives. The proceeds will be used for working capital and to further the development of the peptides.

The company's stock closed up $0.09 at $1.79 on Tuesday.

Optimal Geomatics plans deal

Optimal Geomatics Inc. announced its plans Tuesday to raise C$1.8 million in a private placement.

The offering includes 7.2 million shares at C$0.25 each.

One of the company's major shareholders, has agreed to subscribe for 2.8 million shares.

"It looks fair to me," said one market source. "I think it will go well for them. They're a pretty strong company, so I think you can expect it to go well."

Based in Vancouver, B.C., Optimal Geomatics provides geomatics services to power line and pipeline utility companies. The proceeds from the deal will be used for general working capital, including marketing and sale in North America and the expansion of its operations in Vancouver.

On Tuesday, the company's stock closed up C$0.02 at C$0.30.

BrainStorm closes $1.3 million deal

BrainStorm Cell Therapeutics raised $715,051 in the final tranche of a $1,330,107 private placement.

The company issued 953,401 units at $0.75 each to 25 individual investors. The units include one share and two warrants.

One of the warrants provides for an additional share at $1.50 each for one year and the other allow for an additional share at $2.50 each for three years.

The company completed a $234,959 offering in November of 2004 and a $380,097 deal in October of 2004.

"The seed funding mechanism lays the foundation for initiating and accomplishing our immediate goals," said the company's chief executive officer Yaffa Beck in a statement. "We are now exploring longer-term financing mechanisms so that we can spearhead pre-clinical research and development with a view towards clinical trial activities."

Based in Tel Aviv, Israel, BrainStorm is a stem cell therapeutics research company. It plans to use the proceeds from the offering as seed money to cover the costs of extending the company's management base, recruiting senior scientific personnel and building laboratory facilities.

Arawak's stock down

Arawak Energy Corp.'s stock dipped for the second day in a row after announcing a private placement for C$50.4 million.

The company's stock closed down C$0.02 at C$2.30 on Tuesday and closed down C$0.06 to close at C$2.32 on Monday when the deal was first announced.

The private placement includes sold at C$2.10 each.

Based in Anguilla, British West Indies, Arawak is an oil and natural gas acquisition and development company.

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