Infinity raises $75 million from new partner; Icon lands A$20 million facility; St. Andrew, Resin plan deals

By Kenneth Lim

Boston, Nov. 20 - Infinity Pharmaceuticals, Inc. placed $75 million of its stock with a new business partner as part of an alliance to develop the company's early-stage projects.

Icon Energy Ltd. said it negotiated a A$20 million convertible financing facility with Pacific Capital Value Ltd. to fund a drilling program.

St. Andrew Goldfields Ltd. plans to place C$6 million of stock and warrant units to raise capital for exploration, while Resin Systems Inc. said it will raise C$5 million through a sale of convertibles.

Infinity raises $75 million

Infinity Pharmaceuticals placed $75 million of its common stock with Purdue Pharmaceutical Products LP and an affiliate.

The company has sold 4 million shares at $11.25 apiece to Purdue Pharma LP and Purdue Pharmaceutical Products LP for $45 million in an initial tranche. The investors will buy a further 2 million shares and warrants for 6 million shares in a second tranche valued at $30 million.

Infinity common stock (Nasdaq: INFI) rose 6.81% or $0.36 to close at $5.65 on Thursday.

Of the warrants, a portion are exercisable for 500,000 shares at $15 until July 1, 2010, with an exercise price that increases over time to a maximum strike price of $20. Some of the warrants are exercisable for 1 million shares at $20 until July 1, 2011, with an exercise price that increases over time to a maximum strike price of $30. The remainder of warrants will be exercisable for 1.5 million shares at $30 until July 2, 2012, with an exercise price that increases over time to a maximum strike price of $40.

Infinity is a Cambridge, Mass., pharmaceutical company working on cancer treatments.

The placement was part of a new strategic alliance between Infinity, Purdue and Mundipharma International Corp. to research, develop and commercialize Infinity's early clinical and discovery programs.

Upon the closing of the second placement tranche, Purdue will also extend to Infinity a $50 million 10-year line of credit for any business purpose.

"Infinity's mission is to discover, develop, and deliver to patients important medicines for the treatment of cancer," said Infinity chairman and chief executive Steven H. Holtzman in a statement. "This alliance with Purdue Pharma and Mundipharma provides Infinity with the financial resources and independence to continue our productive discovery efforts, to expand our clinical development capabilities, and to build our own organization to commercialize our products in the United States."

Infinity president and chief business officer Adelene Q. Perkins added: "This relationship provides an incredible opportunity for Infinity by affording us access to the capital necessary to do what our R&D team does best: to discover and develop important new medicines for patients. It enables us to continue to operate nimbly while building upon and enhancing our culture of citizen ownership that we hold so dear."

Icon has A$20 million option

Icon Energy negotiated a A$20 million convertible financing facility with United Kingdombased Pacific Capital that will last for three years.

The facility gives Icon the option to sell up to 20 A$1 million tranches of the zero-coupon convertible unsecured notes over three years to Pacific Capital. The notes will all mature three years after the initial tranche is issued. The 11th to 20th tranches are exercisable at Icon's option.

Proceeds will be used for a drilling program in the ATP 626P project.

Icon Energy is an oil and gas explorer based in Robina, Australia.

"Icon Energy Ltd. is in a position today to issue convertible notes on such favorable terms because of our strong business fundamentals and the significant potential in ATP 626P," Icon Energy managing director Ray James said in a statement. "We are very gratified to have the assistance and the vote of confidence from Pacific Capital. This is a clear affirmation of their belief in Icon Energy Ltd.'s future growth potential particularly given the difficulties in funding experienced by many companies due to the current global credit crisis."

St. Andrew eyes C$6 million

St. Andrew is offering C$6 million of units through a private placement.

The company will sell about 22.22 million units of one flow-through common share and one half-share warrant at C$0.27 per unit. Each whole warrant is exercisable at C$0.49 for 18 months. St. Andrew common stock (TSX: SAS) fell 16.33% or $0.04 to close at C$0.205 on Thursday.

Proceeds will be used St. Andrew's exploration programs in the Timmins Mining Camp.

St Andrew is a gold mining and exploration company based in Oakville, Ont.

Resin to offer convertibles

Resin Systems plans to offer C$5 million of 15% five-year convertible debentures in a private placement, with company insiders willing to take up more than half of the securities.

The debentures will be sold in units of one $1,000 convertible debenture and 4,000 warrants exercisable at C$0.18 for five years. The initial conversion price of the debentures will be 115% of the volume weighted average trading price of the company's common shares for the five consecutive trading days ending five trading days preceding the date that is two years from the date of closing.

Resin common stock (TSX: RS) last traded at C$0.095 on Thursday, down by 32.14% or C$0.045.

Proceeds will be used as working capital and for general corporate purposes.

Resin is a composite products company based in Calgary, Alta.

All of the eligible members of Resin's board of directors and officers plan to subscribe for about C$2.6 million of the units offered. Company chairman Wilmot Matthews and president and chief executive Paul Giannelia will each subscribe for C$1 million of units.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.