Avexa raises $15 million from stock offering; Neuro-Hitech pockets $5.6 million

By Sheri Kasprzak

New York, March 21 - The PIPE market saw an increase in volume Wednesday as the stock market made a major comeback, according to one sellsider.

The offerings Wednesday were led by a $15 million stock deal from Australian biopharmaceutical company Avexa Ltd.

The company wasn't the only Aussie firm in the news as Nexus Energy Ltd. announced plans to raise up to A$30 million in a stock offering.

Meanwhile, back in the States, the Dow Jones Industrial Average found its way back up, gaining 159.42 to close at 12,447.52. The Nasdaq composite index put on 47.71 to finish at 2,455.92, and the Standard & Poor's 500 composite index settled up 24.10 at 1,435.04.

"I think it's great news for us," said the sellside market source on Wednesday afternoon. "I feel pretty confident that things will improve, volume-wise, now that the stock market picture is a bit more optimistic."

Moving back to that Avexa offering, the company sold 28,301,886 shares at $0.53 each, a 16% discount to the volume weighted average share price for the 10 trading days ended March 14.

The company also is launching a two-for-five underwritten rights issue to existing shareholders. The shareholders have the right to buy new shares at $0.53 each.

ABN Amro Morgans Corporate Ltd. is the underwriter.

Proceeds from both offerings will be used to complete the phase 3 trials of the company's anti-HIV drug ATC over the next two and a half years.

The company's stock jumped 42.65%, or 29 cents, to close at A$0.97 on Wednesday (Australia: AVX).

"We are delighted both with the stellar result of the phase 2b trial reported on Monday of this week and with the endorsement of Avexa by highly regarded U.S. institutional investors," said Julian Chick, the company's chief executive officer, in a statement.

"We also felt it was important to offer to our existing shareholders, who have repeatedly given Avexa their support, the same opportunity to invest further through participation in the rights issue. This is an exciting time for the company and following the capital raising, Avexa will be in a strong position to not only progress ATC to commercialization but also grow and diversify its portfolio of projects."

Victoria, Australia-based Avexa is a biopharmaceutical company focused on developing treatments for HIV.

Nexus plans offering

In another substantial offering from an Australian company, Nexus Energy announced plans to price a A$30 million private placement of shares.

The bookbuilding process is expected to wrap up on Thursday, but it is anticipated that the deal will include 36.84 million shares.

Deutsche Bank and Wilson HTM are the bookrunners.

The company's stock is halted at A$0.875 (Australia: NXS).

Neuro-Hitech raises $5.6 million

In another biotech sector offering, Neuro-Hitech, Inc. completed a $5.6 million offering of 1,092,682 shares.

The shares were sold at $5.125 each, and the investors also received warrants for 550,000 shares, exercisable at $7.00 each.

The company settled the first tranche of the deal for $3.1 million in November.

Proceeds from the offering will be used to fund the company's merger with QA Acquisition Corp.

Following the deal, the company has 12.3 million outstanding shares and 16 million fully diluted shares.

"We are pleased to secure this capital infusion, which will allow the company to increase shareholder value by focusing on our business strategy of developing and commercializing compounds for neuro-degenerative diseases," said Reuben Seltzer, the company's CEO, in a statement.

"We now have sufficient capital to complete the phase 2 trial of Huperzine A [to treat Alzheimer's disease], as well as advance the rest of our pipeline, including the transdermal patch of Huperzine A."

Neuro-Hitech's stock advanced by 6.6%, or 35 cents, on Wednesday to settle at $5.65 (OTCBB: NHPI).

New York-based Neuro-Hitech develops and commercializes treatments for Alzheimer's disease and other degenerative neurological disorders.

Memory Pharma stock dives

A day after Memory Pharmaceuticals, Inc. sealed a $10 million loan offering with warrants, the company's stock plummeted by 16.91%.

The stock gave up 35 cents to end the session at $1.72 (Nasdaq: MEMY). The stock gained 14 cents in after-hours trading activity.

Volume was also up with 1,015,462 shares traded compared with the average 532,678 shares.

On Tuesday, when the offering was announced, the company's stock fell 14 cents to close at $2.07.

In the offering, the company sold a $10 million loan to Hercules Technology Growth Capital, Inc.

The deal includes warrants for 598,086 shares, exercisable at $2.09 each for five years. The strike price of the warrants is a 5.4% discount to the company's $2.21 closing stock price on Monday.

The loan bears interest at Prime rate plus 320 basis points and is due in 30 equal monthly installments beginning the last business day of June 2008.

Memory, based in Montvale, N.J., develops treatments for central nervous system disorders.

Bullion River closes two deals

In the natural resources sector, Bullion River Gold Corp. settled two offerings - one of units and one of secured convertible debentures.

In the units offering, the company sold 2,280,336 units of one share and one warrant at $0.75 each. The warrants are exercisable at $1.00 each for two years.

The investors include James R. Carrick; Goldberg Partners, LP; Marjorie L. Gorelik; Abundance Partners LP; Arjun Rich; PLY Holdings, Inc.; Verity Absolute Return Fund LLC; Karno Capital Corp.; Glynn Fisher; and Allen Wilson.

In the debentures deal, the company sold 10% debentures to Elton Participation Corp. The notes, due Sept. 12, 2007, are convertible at $0.75 each. The investor also received warrants for 1,333,334 shares, exercisable at $1.00 each for two years.

The company also announced that is has purchased two new crushers that are expected to increase mill capacity to 250 tons per day.

On Wednesday, Bullion River's stock gained 4.84%, or 3 cents, to close at $0.65 (OTCBB: BLRV).

Bullion River, based in Reno, Nev., is a gold and silver mining company.

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