Private placement volume strong as week ends; Inhibitex raises $50 million

By Sheri Kasprzak

Atlanta, Nov. 5 - Private placement volume in both the United States and Canada remained strong as the week ended, fueled by an improved oil market.

"Oil has been really affecting the market all week," said one sell-side source. "Oil prices improved today so that really drove the volume up."

Oil prices closed just under $50 Friday, rebounding from instability earlier in the week.

"Biopharm companies also did pretty well today, so that's why you're seeing some of those deals in the market," said the source.

Biopharmaceutical company Inhibitex Inc. led U.S. private placement action to wrap up the week with news that it raised $50 million.

The company is selling 6.8 million common shares at $7.34 per share to a group of institutional investors. The investors will also receive warrants for about two million shares at $8.81 per share.

"This financing will significantly strengthen our balance sheet and better position us to advance our pipeline of antibody-based product candidates for the prevention and treatment of serious and life-threatening infections," said chief financial officer Russell H. Plumb in a statement. "In particular, the net proceeds from this financing, together with our existing cash, cash equivalents and short-term investments should provide us with sufficient financial resources to complete our ongoing Veronate Phase III trial."

"It looks like it was priced in line with the market," said one trader familiar with the deal. "It seems like a good deal for them."

Indeed, the company's stock soared $0.30 to close at $7.37 Friday.

The deal is expected to close Nov. 10.

The Alpharetta, Ga.-based biopharmaceutical company plans to use the proceeds from the financing for the development of its Veronate and Aurexis clinical programs, for its pre-clinical research programs and for general corporate purposes.

Daybreak's $3 million deal

On Friday, Daybreak Mines Inc. said it raised $3 million in a private placement.

The company agreed to sell three million shares of its series A non-voting convertible preferred shares to Crosspoint Holdings Inc. for $1 per share on Nov. 2. The shares are convertible into four shares of common stock for one year.

Until March 31, 2005, Crosspoint has the option to buy an additional three million shares of the series A non-voting convertible preferred stock at $1 per share.

Based in Osburn, Ida., Daybreak is a mining exploration company.

On Friday, Daybreak's stock closed down $0.01 at $0.15.

Usurf America gets $1 million

Usurf America Inc. it will receive $1 million in a private placement.

On Oct. 29, the company entered into subscription agreements with Monarch Pointe Fund Ltd. and Mercator Advisory Group LLC to sell 10,000 shares of series A convertible preferred stock at $100 per share.

The preferreds are convertible into common shares at 85% of the market price, but the level may not exceed $0.075 or be less than $0.05.

Usurf also issued warrants for seven million shares of common stock at $0.075 for three years.

Based in Colorado Springs, Colo., Usurf is a wireless internet access company. Its stock closed up $0.008 at $0.08.

Canadian deals

Tanganyika Oil Co. Ltd. led private placement action in Canada Friday with news that it plans to raise C$13.5 million in an arm's-length sale.

The deal consists of two million shares at C$6.75 through facilities of the Toronto Stock Exchange Venture Exchange.

Based in Vancouver, B.C., Tanganyika is an oil and gas exploration and production company. It plans to use the proceeds from the private placement for new acquisitions and general working capital.

On Friday, Tanganyika's stock closed down C$0.23 at C$6.77.

Kirkland Lake plans £5.26 million deal

Kirkland Lake Gold Inc. said it plans to enter the private placement market to raise £5.26 million (equivalent to C$11.7 million) in an offering.

The company plans to sell the private placement to European institutional investors. The deal consists of 1,950,292 shares at £2.70 (C$6) per share.

Canaccord Capital Ltd. will serve as placement agent in the deal, which will be placed on a best-efforts basis.

Based in Vancouver, B.C., Kirkland Lake is a gold-mining company. It plans to use the proceeds from the financing for working capital and for development of its Ontario mining operations.

Kirkland Lake's stock closed up C$0.02 at C$6.25 Friday.

Sabina wraps C$7.089 million deal

Sabina Resources Ltd. finished up a C$7,089,148.50 private placement, the company said Friday.

Sabina sold 4,726,099 units of one flow-through share and one non-transferable half-share purchase warrant at C$1.50 per unit.

The whole warrants are exercisable for 18 months at C$2.20 for one non flow-through share.

Pacific International Securities Inc., Canaccord Capital Corp. and Dundee Securities Corp. acted as placement agents in the deal.

Sabina is a Toronto-based gold and base metal exploration company. It plans to use the proceeds from the offering for exploration of its Canadian resource properties. Its stock closed up C$0.10 at C$1.16 Friday.

Crowflight raises C$4.9 million

Crowflight Minerals Inc. said Friday it received C$9 million in a private placement.

The company sold 5,880,713 units of one share and one half-share warrants at C$0.35 for proceeds of C$2,058,250. The whole warrants allow for the purchase of an additional common share at C$0.50 for two years.

Crowflight also sold 7,335,000 flowthrough units of one share and one half-share warrant at C$0.40 per unit for a total of C$2,934,000. The whole warrants allow for one share at C$0.60 for two years.

Based in Toronto, Crowflight is a mining exploration company focused on platinum, copper and nickel. Crowflight's stock closed unchanged at C$0.37 Friday.

Minterra proceeds with C$2 million deal

Minterra Resource Corp. will proceed with a C$2 million private placement, the company said Friday.

The offering consists of eight million units of one share and one half-share purchase warrant at C$0.25 per unit.

The full warrants allow for the purchase of an additional share at C$0.30 for two years.

Minterra is a Vancouver, B.C.-based exploration company. It plans to use the proceeds from the financing for the acquisition and initial exploration costs of 11 projects in the Carlin and Cortez trends of Nevada.

Minterra's stock closed up C$0.01 at C$0.31 Friday.

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