Cougar Biotechnology wraps $47.58 million PIPE; Global Entertainment raises $6.2 million

By Sheri Kasprzak

New York, April 10 - Cougar Biotechnology, Inc. secured $47,575,000 from a PIPE on Monday to help fund its reverse merger with blank check company SRKP 4, Inc.

A group of investors, including Adage Capital Management, LP; Brookside Capital; T. Rowe Price Associates; Merlin Biomed Group; RA Capital Management; and Tavistock Life Sciences, bought 27.5 million shares at $1.73 apiece.

One of those investors said he feels Cougar is a solid company with a strong product.

"We are first-time investors but believe the value of Abiretarone, their testosterone synthesis inhibitor, is an outstanding compound that will generate [prostate-specific antigen test] responders in prostate cancer later this year," said one buysider who participated in the deal. "It's a solid company now with a fundamental investor base."

Cowen & Co., LLC and Paramount BioCapital, Inc. were the placement agents.

In the reverse merger, Cougar will remain as the surviving company and wholly-owned operating subsidiary of SRKP 4. SRKP 4 was renamed Cougar. Prior to the merger, SRKP 4 was a blank check company based in Deerfield Beach, Fla.

Proceeds will be used for the clinical development of Cougar's CB7630, CB3304 and CB1089 clinical drug candidates, as well as the development of other drug candidates. The remainder will be used for working capital and general corporate purposes.

"We are pleased to be able to complete this placement with such a leading group of institutional investors in biotechnology," said Alan H. Auerbach, the company's chief executive officer, in a news release. "The proceeds from this financing will allow the company to move forward expeditiously with the clinical development of its pipeline."

"One of Cougar's key objectives for the year was to raise sufficient capital to not only complete the early clinical testing of the company's drugs but also to be able to move forward with more advanced clinical development. We are pleased to be able to accomplish this milestone with such a strong group of institutional investors," said Arie Belldegrun, Cougar's chairman, in the statement.

Looking to SRKP 4's latest earnings statement, the company reported a net loss of $32,872 from its inception on May 24, 2005 through Dec. 31, 2005.

Los Angeles-based Cougar is a biotechnology company focused on the development of tumor therapies.

Global pockets $6.2 million

Elsewhere in private placements Monday, Global Entertainment Corp. settled a $6,204,250 PIPE.

The company sold 1,079,000 shares at $5.75 each, a 19% discount to the company's $7.10 closing stock price on April 7, to a group of institutional investors.

The investors received warrants for 215,800 shares, exercisable at $7.10 each.

Miller Capital Markets, LLC was the bookrunner with Sanders Morris Harris and Taglich Brothers Inc. as co-agents.

Proceeds will be used to strengthen the company's balance sheet and to fund acquisitions.

"We are very pleased to have completed this financing and believe it represents a vote of confidence by investors in our strategy to develop a series of multifaceted, fully integrated businesses to capitalize on cross-revenue generation opportunities within the midsize communities we serve," said Global Entertainment CEO Rick Kozuback, in a statement.

The stock closed unchanged at $7.10 on Monday (AMEX: GEE).

For the quarter ended Nov. 30, 2005, the company reported a net loss of $297,894, compared to a net loss of $158,468 for the same quarter ended Nov. 30, 2004.

Global Entertainment, based in Phoenix, acquires and develops real estate used for sporting events.

HudBay prices C$20 million deal

Looking to Canadian PIPE activity, HudBay Minerals Inc. negotiated a C$20,075,000 offering of 1.46 million flow-through shares at C$13.75 each.

The deal is being placed through a syndicate of underwriters led by GMP Securities LP.

The offering is expected to close April 25.

The placement was announced Monday afternoon and by the end of the day the stock had advanced by 5.88%, or 65 cents, to close at C$11.70 (Toronto: HBM).

"We are very pleased that this financing will allow our aggressive exploration program in the Flin Flon greenstone belt to continue as planned and additionally provide funds for exploration on our exploration lands in Ontario, the Yukon and elsewhere in Canada," said Peter R. Jones, the company's CEO, in a news release.

Headquartered in Winnipeg, Man., HudBay is a mineral exploration company focused on properties in Ontario, Michigan and New York State.

Royal Standard's C$11 million PIPE

Elsewhere in mineral offerings, Royal Standard Minerals Inc. priced an C$11 million non-brokered private placement.

The company intends to sell up to 9,565,217 units at C$1.15 each.

The unit price is a 25.8% discount to the company's April 7 closing stock price of C$1.55.

The units consist of one share and one half-share warrant with each whole warrant exercisable at C$1.75 for two years.

The warrant strike price is 13% premium to the April 7 closing stock price.

The deal priced Monday morning. By the end of the session, Royal Standard's stock sank 12.9%, or 20 cents, to finish at C$1.35 (TSX Venture: RSM).

Based in Manhattan, Nev., Royal Standard is a mineral exploration company.

Also, Continental Precious Minerals Inc. planned a C$7,425,000 unit deal.

The offering sent the company's stock skyrocketing 55%, or 55 cents, to settle at C$1.55 Monday (TSX Venture: CZQ).

The non-brokered offering consists of up to 8.25 million units of one share and one warrant at C$0.90 each.

Each warrant is exercisable at C$1.20 for two years.

The investors include Sprott Asset Management Inc., Pinetree Capital Ltd. and RAB Special Situations (Master) Fund Ltd.

The deal is expected to close April 13.

Proceeds will be used for exploration, bulk sampling, metallurgical testing and other expenses.

Toronto-based Continental is a mineral exploration company.

Acusphere's stock edges up

After announcing the imminent completion of a $40,216,437 direct placement of units, Acusphere, Inc.'s stock gained almost 3% Monday.

The stock advanced 2.78%, or 18 cents, to conclude at $6.65 (Nasdaq: ACUS).

On Friday, when the deal was announced, Acusphere's stock fell 7.31%, or 51 cents, to close at $6.47.

In the placement, a group of institutional investors agreed to buy units of one share and one third-share at $6.9675 each, a slight discount to the company's April 6 closing stock price.

The shares will be sold under the company's shelf registration.

Cowen & Co., LLC is the placement agent for the deal, which is expected to settle on April 12.

Trading volume of Acusphere's stock took off on Friday with 392,740 shares traded compared to the average 116,944 shares traded. Volume backed off on Monday with 155,379 shares traded compared to the average 121,324 shares traded.

Based in Watertown, Mass., Acusphere develops treatments for cancer, asthma and cardiac disorders, including AI-700.

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