Corgentech seals $30 million equity line; Oxford Media plans $7.8 million PIPE as part of acquisition

By Sheri Kasprzak

New York, June 20 - Corgentech Inc. closed a $30 million equity line with Azimuth Opportunity Ltd. and saw its stock slip by more than 2.5% on Tuesday.

Under the terms of the two-year equity line, Azimuth agreed to buy shares at a discount of 6% to 7% to the volume weighted average price over the 10 trading days after notice of a draw.

"Corgentech is moving 3268, our first product for pain management, toward commercialization," said Richard Powers, the company's chief financial officer, in a news release. "This equity commitment facility provides us with the flexibility to opportunistically raise additional capital over the next 24 months to pursue our business plan, including the potential launch of 3268 next year."

The stock fell 2.67%, or 22 cents, to end at $8.02 (Nasdaq: CGTK).

Proceeds will be used for the company's clinical development, for working capital and for general corporate purposes.

Looking to the company's latest earnings statement, Corgentech reported a net loss of $14.56 million for the quarter ended March 31, compared with a net loss of $5.70 million for the same quarter of 2005.

"We expect to continue to incur substantial losses over the next several years during our development phase," said the earnings report. "To fully execute our business plan, we will need to complete certain research and development activities and clinical trials.

"These activities may span many years and require substantial expenditures to complete and may ultimately be unsuccessful. Any delays in completing these activities could adversely impact us.

"We plan to meet its capital requirements primarily through issuances of equity securities, research and development contract revenue and, in the longer term, revenue from product sales."

Corgentech, based in South San Francisco, Calif., is a biopharmaceutical company focused on therapeutic treatments for pain.

Oxford's $7.8 million deal

In other PIPE activity, Oxford Media, Inc. has negotiated a $7.8 million private placement as part of its acquisition of SVI Hotel Corp.

The offering includes 10% notes due Jan. 15, 2007.

Closing of the deal is contingent upon completion of the SVI acquisition. If the acquisition isn't closed by July 14, the financing will not move forward.

The offering also includes up to 1,164,181 common shares and warrants for 2,910,453 shares, exercisable at $1.50 each.

The company's stock climbed 9.09%, or 10 cents, to end the session at $1.20 (OTCBB: OXMI).

Based in Irvine, Calif., Oxford Media markets proprietary video-on-demand and pay-per-view entertainment systems for the hotel industry.

Sierra Vista plans C$10 million PIPE

In the energy sector, Calgary, Alta.'s Sierra Vista Energy Ltd. priced a C$10,000,235 private placement.

The company intends to sell up to 4,348,000 class A shares at C$1.15 each and up to 3,448,300 class A flow-through shares at C$1.45 each.

The offering is being placed through a syndicate of underwriters led by Dundee Securities Corp. and is scheduled to close July 6.

Proceeds from the flow-through shares will be used for exploration on the company's Canadian properties, and the proceeds from the common shares will be used for general corporate purposes.

The stock closed unchanged at C$1.40 (TSX Venture: SVR).

Sierra Vista is an oil and natural gas exploration company.

In the broader oil market, oil prices remained virtually unmoved. Oil slipped by 4 cents to end the day at $68.94 per barrel.

Resin prices offering

Elsewhere in Canadian PIPEs Tuesday, Resin Systems Inc. negotiated a C$7 million private placement of 4 million units at C$1.75 apiece.

The units are comprised of one share and one half-share warrant. Each whole warrant is exercisable at C$2.25 for 18 months.

The deal is expected to close June 28.

Agents CIBC World Markets Inc. and Kingsdale Capital Markets Inc. have a greenshoe for up to C$3 million.

Proceeds will be used for order fulfillment of modular composite utility poles and for the commercialization and development of its Version resins and other products. The rest will be used for working capital.

On Tuesday, the stock fell 5 cents, or 2.7%, to end at C$1.80 (Toronto: RS).

Based in Edmonton, Alta., Resin develops resin-based communications infrastructure products.

AirIQ raises C$3 million

Toronto-based AirIQ Inc. wrapped a private placement of debentures with special warrants for C$3 million with Wellington Financial LP.

The 12% debentures are due June 20, 2008.

Wellington also received special warrants which are exercisable for 3.75 million warrants at C$0.24 each. The underlying warrants expire on June 20, 2009.

Proceeds will be used to reduce debt held by Lenbrook Corp. and Quadrature Investments Inc. The rest will be used for working capital.

"AirIQ, recognized recently in the Profit 100 rankings for the third straight year, is one of the many successful Canadian growth companies that Wellington Financial is pleased to support," said Mark McQueen, chief executive officer of Wellington, in a statement.

AirIQ's stock lost a penny and a half on Tuesday to settle at C$0.16 (Toronto: IQ).

AirIQ, based in Toronto, provides internet application services specializing in telematics used by commercial fleets.

Peregrine stock edges up

Peregrine Pharmaceuticals, Inc. watched its stock creep up on Tuesday after announcing the imminent completion of a $13 million private placement of stock with The Double U Master Fund LP.

The stock climbed 4 cents, or 2.4%, to close at $1.71 and gained another penny in after-hours trading (Nasdaq: PPHM).

On Monday, the stock edged up by 2 cents to close at $1.67.

Double U has agreed to buy shares of Peregrine at $1.40 each, a 15% discount to the company's $1.65 closing stock price on Friday.

Proceeds will be used for the advancement of the company's lead clinical programs including a phase 1b repeat dose study of bavituximab to treat hepatitis C and a phase 1 study of bavituximab to treat solid tumor cancer.

Located in Tustin, Calif., Peregrine is a biopharmaceutical company focused on treatments for cancer and hepatitis C.

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