Pharmacyclics ups direct offering; Celsion gets equity facility; China Power seals $10 million

By Stephanie N. Rotondo

Portland, Ore., June 17 - Pharmacyclics Inc. announced on Thursday that it had upsized its previously announced registered direct offering of stock.

The company is now looking to raise about $52 million, up from the original amount of $42 million. The company is selling common shares at a price equal to the stock's June 15 closing price.

Also in the medical arena, Celsion Corp. said it had negotiated a $15 million equity facility with a biotech hedge fund. The company will issue common shares to the investor at a predetermined discount.

Elsewhere, China Power Technology Inc. settled a $10 million private placement of common stock, the company said in a filing with the Securities & Exchange Commission. Proceeds will be used to strengthen the company's bottom line.

Cadillac Ventures Inc. said it had completed an oversubscribed private placement of units. The mining company had originally intended to raise C$3.75 million, but took in C$4.61 million instead.

Among new deals, Stealth Ventures Ltd. announced a C$3 million private placement of units. The funds will be used for exploration.

And, Neptune Technologies & Bioressources Inc. nixed plans to raise money via the PIPE market. The company blamed market conditions for the cancellation.

Pharmacyclics ups direct placement

Pharmacyclics increased the size of a previously announced registered direct offering of stock to about $52 million from $40 million, according to a press release.

The deal originally priced June 16.

The company now intends to sell 8 million common shares at $6.51 per share.

The price per share is equal to the June 15 closing price.

Proceeds will be used for general corporate purposes, including clinical trials, pre-clinical research expenses, general and administrative expenses, and for working capital. Settlement is expected by June 21.

Calls seeking comment were not returned Thursday.

Pharmacyclics' stock (Nasdaq: PCYC) fell 13 cents, or 1.84%, to $6.93. Market capitalization is $353.79 million.

Pharmacyclics is a Sunnyvale, Calif.-based clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of immune-mediated diseases and cancer.

Celsion gets equity facility

Celsion, another company focused on cancer treatments, announced it had secured a $15 million two-year committed equity financing facility from Small Cap Biotech Value Ltd.

Small Cap has agreed to purchase common shares over the term of the facility at a pre-negotiated discount of 5% to 6% based on the volume-weighted average price of Celsion's stock preceding the draw request.

However, Celsion is not obligated to use the facility and can at any time pursue other financing options.

"This equity line provides us with an important financing option at a competitive cost of capital with no warrants," said Michael H. Tardugno, president and chief executive officer, in a press release. "This flexible structure should strengthen our position in licensing and future financing negotiations."

Proceeds from the facility will be used for clinical development programs related to ThermoDox, a proprietary heat-activated liposomal encapsulation of doxorubicin, an approved and frequently used oncology drug for the treatment of a wide range of cancers including breast cancer.

Celsion's shares (Nasdaq: CLSN) improved by a nickel, or 1.45%, to $3.49. Market capitalization is $42.67 million.

Celsion is a Columbia, Md.-based developer of cancer treatments using focused-heat energy.

China Power seals $10 million

China Power Technology pocketed $10 million from a private placement of equity, according to a regulatory filing.

The deal settled June 16.

The Henan Province, China-based company sold approximately 3.7 million common shares at $2.70 per share.

Proceeds will be used to strengthen the company's balance sheet, as well as to support operations and to provide additional funding for ongoing investments.

China Power is a privately held subsidiary of WorldBest Group. The company is developing new energy efficient radiant heaters.

Cadillac deal done, increased

Cadillac Ventures closed the second and final tranche of a private placement of units, raising a total of C$4.61 million.

The deal originally priced at C$3.75 million on June 1, but was increased on June 14 to C$4.61 million due to investor demand. The company raised C$1 million in the first closing at the remaining C$3.61 in the second closing.

Cadillac sold a total of 11.08 million common share units and 8.68 million flow-through units. The common share units were issued at C$0.22 each and contained one common share and one half-share warrant. The flow-through units were meantime sold at C$0.25 each and consisted of one flow-through common share and one half-share warrant.

Whole warrants are exercisable at C$0.35 for two years. The warrant's strike price represents a 40% premium to the stock's C$0.25 closing price as of May 31.

Of the proceeds raised, MineralFields Group purchased C$1.5 million of the flow-through units.

"We are very pleased to be entering into this relationship with MineralFields Group and we look forward to working with MineralFields Group as we continue to develop our Thierry Property," said Norman Brewster, president and CEO, in a press release.

The company did not return calls seeking further comment.

Proceeds will be used for exploration and working capital.

Cadillac's equity (TSX Venture: CDC) dipped a cent, or 2.33%, to C$0.21. Market capitalization is C$12.8 million.

Cadillac Ventures is a Toronto-based mining company.

Stealth seeks C$3 million

Stealth Ventures said it would conduct a C$3 million non-brokered private placement of units in a press release.

The Calgary, Alta.-based oil and gas company will sell 30 million units at C$0.10 each. The units will contain one common share and one half-share warrant.

Whole warrants are exercisable at C$0.25 for two years. The exercise price is a 127% premium to the stock's C$0.11 closing price as of June 16.

Proceeds will be used for working capital, including the evaluation of emerging unconventional resource plays and opportunities in India.

Calls seeking comment were not returned Thursday.

Stealth's stock (TSX Venture: SLV) fell a cent, or 9.09%, to C$0.10. Market capitalization is C$9.95 million.

Neptune nixes financing

Laval, Quebec-based Neptune Technologies & Bioressources canceled a previously announced private placement.

The deal originally came May 4.

"After being solicited by Paradigm Capital Inc. Neptune decided, while market conditions were favorable, to raise money through a brokered private placement in order to increase its treasury," the company said in a press release. "However, considering current market conditions and Neptune stock performance, Neptune has decided not to proceed with the private placement."

"We have sufficient liquidity on hand, close to C$3 million, along with sustainable positive nutraceutical operational results, to conduct our strategic business plan in both nutraceutical and pharmaceutical segments," added Andre Godin, vice president of administration and finance, in the release. "Moreover, business partnerships should translate into additional support for further strategic development projects."

Neptune's shares (TSX Venture: NTB) gained 18 cents, or 13.33%, to C$0.18. Market capitalization is C$58.5 million.

Neptune Technologies is a developer of nutritional products from marine biomasses.

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