Threshold to issue units; Rockwell Medical aims for $22 million; RegeneRx plans unit placement

By Stephanie N. Rotondo

Portland, Ore. Sept. 30 - The biotechnology sector was active in the private placement market Wednesday, bringing several large deals.

Threshold Pharmaceuticals Inc., for one, announced a $35 million private placement of units. The company intends to use proceeds for research and development.

Rockwell Medical Technologies Inc. also announced a deal, a $22.01 million registered direct offering of common share units. Rockwell also intends to use proceeds for research and development.

And, RegenRx Biopharmaceuticals Inc. said it would raise $4.7 million in two deals. The first $3.7 million will come from a registered direct offering of units, while the remaining $1 million will come from a private placement to a single investor. Both transactions carry the same terms.

Away from that sector, Augean plc said it completed a £13 million private placement of ordinary shares. The company's top executive said in a press release that the funding would place the company on more solid footing as the economy recovers.

Quaterra Resources Inc. also settled a deal, taking in C$5.77 million. The company had originally intended to raise C$6 million.

Threshold to issue units

Threshold Pharmaceuticals will raise $35 million from a private placement of units, the company said in a press release.

The company will sell approximately 18.3 million units, with each unit holding a common share and one warrant for 0.4 common shares. The units will sell at $1.91 each and whole warrants are exercisable at $2.23 for five years.

Federated Kaufmann Fund, Frazier Healthcare Ventures and Great Point Partners, LLC are among the deal's investors.

Proceeds will be used for research and development, among other things. Settlement is expected by Oct. 5.

Calls made to the company seeking comment went unreturned Wednesday.

Threshold's equity (Nasdaq: THLD) fell nearly 7 cents, or 3.72%, to $1.81. Market capitalization is $28 million.

Threshold Pharmaceuticals is a Redwood City, Calif.-based biotechnology company that develops small molecule therapeutics for the potential treatment of cancer.

Rockwell aims for $22 million

Rockwell Medical Technologies announced a $22.01 million registered direct offering of units.

The company will sell 2.84 million common shares, along with warrants equal to another 1.07 million shares, at $7.75 per unit. Each warrant is exercisable at $9.55 for five years.

Proceeds will be used for general corporate purposes, "which may include funding of clinical trials and regulatory activities for soluble ferric pyrophosphate, our licensed drug therapy for the delivery of iron supplementation for anemic dialysis patients, and other research and development expenses, and general and administrative expenses," the company said in a press release.

Settlement is expected by Oct. 5.

Calls seeking comment were not returned Wednesday.

Rockwell's shares (Nasdaq: RMTI) declined by $1.22, or 13.56%, to $7.78. Market capitalization is $110 million.

Rockwell Medical Technologies is a Wixom, Mich.-based manufacturer and developer of renal drug therapies.

RegeneRx plans direct placement

Among other names in the biotechnology sphere, RegeneRx Pharmaceuticals is hoping to raise $3.7 million via a registered direct offering of common stock.

The company will sell approximately 4.51 million of the shares at $0.82 per share. Also, investors will receive warrants equal to approximately 2.25 million additional shares.

The warrants are exercisable at $1.12 for five years.

RegeneRx also said it had entered into a $1 million securities purchase agreement with an affiliate of Sigma-Tau Group, the company's largest shareholder.

The terms of that deal are the same as the private placement. Approximately 1.21 million shares will be purchased by the Sigma-Tau affiliate, along with warrants for another 609,756 shares.

J. J. Finkelstein, RegeneRx's president and CEO, said he was pleased with the terms of the deal and that funds would be used for working capital. Specifically, he said the financing would help with "the continued development of our clinical program."

Finkelstein also noted that investors had originally proposed the financing.

"We were approached by our investment banker we were working with," he said.

Settlement is expected by Oct. 5.

RegeneRx's equity (Amex: RGN) slipped 27 cents, or 24.11%, to $0.85. Market capitalization is $46.2 million.

RegeneRx Pharmaceuticals is a Bethesda, Md.-based a biopharmaceutical company focused on the discovery and development of novel peptides to accelerate tissue and organ repair.

Augean wraps equity sale

Augean, a West Yorkshire, England-based waste and resource management company, settled a £13 million private placement of equity, according to a press release.

The company sold approximately 34.21 million ordinary shares at 38p per share. The price per share represents a 17.4% discount to the stock closing price as of Sept. 29.

The funds will "primarily be used to reduce the company's overall indebtedness and to provide additional working capital for Augean going forward as the company enters new markets," the release stated.

"We are pleased with and grateful for the strong support we have received from our existing shareholders and from new institutional investors," said Paul Blackler, chief executive officer, in the release. "The support demonstrates the compelling growth prospects in the underlying Augean business.

"The new capital ensures that Augean is in a strong position to renegotiate banking facilities in due course and is well equipped to benefit from market recovery from the economic downturn," he concluded.

Augean's stock (London: AUG) closed at 42.84p. Market capitalization is £30.1 million.

Quaterra takes in C$5.7 million

In the mining sector, Quaterra Resources said it wrapped a C$5.77 million non-brokered private placement of equity units.

The deal originally priced at C$6 million on Aug. 19.

The Vancouver, B.C.-based company issued approximately 9.66 million units at C$0.60 each. The units consisted of one common share and one half-share warrant.

Each whole warrant is exercisable at C$0.75 for two years.

Funds raised in the financing will be used for "the company's exploration programs at the company's Nieves and Americas-Mirasol silver and gold projects in Mexico and at the MacArthur and Yerington copper projects in Nevada, as well as general and administration expenses," according to a press release.

Quaterra's stock (TSX Venture: QTA) gained 2 cents, or 2.70%, to C$0.76. Market capitalization is C$64.8 million.

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