SIGA plans $20.03 million sale; Universal Travel seeks acquisition funds; Opexa to place stock

By Stephanie N. Rotondo

Portland, Ore., Dec. 10 - The private placement market saw several deals from the pharmaceutical arena, as well as the mineral and resource sectors Thursday.

Also, several of the day's deals were direct placements.

SIGA Technologies Inc. brought a $20.03 million registered direct offering of stock to market. Also coming to the direct placement arena were Universal Travel Group and Opexa Therapeutics Inc. The former is seeking $20 million, while the latter is aiming for $5.1 million.

Away from the registered direct market, Mantra Resources Ltd. said it would raise over C$15 million from a private placement of stock. The company is also planning a concurrent public offering for C$52 million.

Brett Resources Inc. upsized a previously announced private financing to C$5 million. According to a company spokesperson, the increase was due to "strong demand."

Also, Arian Silver Corp. is seeking C$3 million in project funding via a private placement of equity units.

SIGA announces direct offering

SIGA Technologies will raise $20.03 million from a registered direct offering of equity, according to a regulatory filing and subsequent press release.

The company intends to sell approximately 2.72 million common shares at $7.35 per share.

Proceeds will be used for general corporate purposes, including development of drug candidates, acquisitions, working capital and capital expenditures. Settlement is expected by Dec. 14.

The company could not be reached for comment.

SIGA's stock (Nasdaq: SIGA) fell $1.27, or 14.67%, to $7.40. Market capitalization is $284 million.

SIGA Technologies is a New York-based developer of novel products to treat infectious diseases.

Universal to raise acquisition funds

Among other registered offerings, Shenzen, China-based Universal Travel said it was looking to raise $20 million via a direct placement of common stock.

The travel services company will sell approximately 2.22 million shares at $9.00 per share.

Proceeds will be used for acquisitions and working capital. Settlement is expected by Dec. 15.

Universal's equity (NYSE: UTA) slid $1.31, or 12.66%, to $9.08. Market capitalization is $132 million.

Opexa aims for $5.1 million

Also in the registered direct market, Opexa Therapeutics intends to raise $5.1 million via a registered direct offering of stock.

The Woodlands, Texas-based company will sell 2.55 million common shares at $2.00 per share. Investors will also receive approximately 1.27 million warrants, which are exercisable at $2.55 for one year.

Proceeds will be used for general corporate purposes, including further clinical development of Tovaxin. Settlement is expected by Dec. 14.

"We are pleased to welcome new institutional investors to Opexa," commented Neil K. Warma, president and chief executive officer, in a press release.

"This influx of capital more than doubles our cash liquidity to almost $9 million and creates a meaningful amount of operational flexibility for the business. While partnership discussions around Tovaxin continue, these proceeds will also support activities related to further clinical development of Tovaxin, our personalized cell therapy treatment for multiple sclerosis."

Opexa's stock (Nasdaq: OPXA) declined 38 cents, or 16.45%, to $1.93. Market capitalization is $25.2 million.

Mantra brings add-on

Mantra Resources announced a C$15.2 million private placement of stock.

The financing is part of a previously announced C$12 million placement with Highland Park SA. That deal priced Dec. 8.

In the new portion, the company will sell C$3.2 million in shares to AngloPacific Group plc.

All told, Mantra will issue 3.8 million shares at C$4.00 per share. Highland has subscribed for 3 million shares, with the remainder going to AngloPacific.

Mantra is also planning another public financing for C$52 million.

Proceeds will be used to complete a feasibility study, as well as for ongoing appraisal and development, of its Mkuiu River project. Settlement is expected by Dec. 23.

Mantra's shares (Toronto: MRL) gained 35 cents, or 8.43%, to C$4.50. Market capitalization is C$491.87 million.

Mantra Resources is a Perth, Western Australia-based mineral exploration company.

Brett upsizes stock sale

Brett Resources increased a previously announced private placement of equity to C$5 million, according to a press release.

The deal originally priced at C$3.5 million on Dec. 9.

According to the terms of the non-brokered deal, Brett will issue flow-through shares at C$2.00 per share.

"We had such a strong demand, so we decided to increase it a little more," Tony Perri, manager of investor relations, told Prospect News. He added that not only had investor response been "really good," but also that the company was "absolutely" pleased with the terms of the financing.

Perri said that recent results from the company's Hammond Reef project in Ontario had excited the market, therefore allowing the company to sell the shares at a premium.

The funds raised in the deal will be used at Hammond Reef, Perri said. The company will also determine how to allocate the funds to other Canadian mining projects.

Perri said the closing date for the deal is slated for Dec. 25 but could be as early as next week. "We have almost raised the full C$5 million," he noted.

Brett's shares (TSX Venture: BBR) ended unchanged at C$1.77. Market capitalization is C$152 million.

Brett Resources is a Vancouver, B.C.-based mineral exploration, acquisition and development company.

Arian seeks project funds

Arian Silver is looking to raise C$3 million via a private placement of common share units.

The company will sell 60 million units at C$0.05 each. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.10 for one year.

Proceeds will be used to advance the company's San Jose project to production, as well as to repay loans and for general corporate purposes.

Arian's equity (London: AGQ) closed down 6.67% at 350p. Market capitalization is £9.04 million.

Arian Silver is a London-based silver exploration and development company.

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