Osteologix raises $5.05 million from unit offering; NeoGenomics settles stock sale

By Sheri Kasprzak

New York, June 7 - Two biotech offerings led PIPE news on Thursday. Ostelogix, Inc. wrapped a $5.05 million deal, and NeoGenomics, Inc. closed an offering of stock for $4.005 million.

In the Osteologix offering, the company issued 1,912,877 units at $2.64 each to a group of investors that includes Biotechnology Value Fund. The units consist of two shares and one warrant, exercisable at $1.20 each through Aug. 31, 2008.

"This financing, which we were able to complete at a premium to the market price of our stock, is an important achievement for Osteologix," said Philip J. Young, the company's chief executive officer, in a statement.

"We are very pleased to have attracted new, high-profile investors like Biotechnology Value Fund into the company, while simultaneously receiving a vote of confidence from the largest shareholder through its additional investment."

Young went on to say in the statement that the proceeds from the deal will take the company into the second half of next year, beyond the release of data results from the phase 2 study in osteoporosis treatments, expected to occur during the fourth quarter of 2007.

San Francisco-based Osteologix develops treatments for bone disease and women's health issues.

Meanwhile, the recent slips in the stock market do not appear to have impacted PIPE offerings, according to one sellside market source.

"We're doing OK," the sellside source said. "I don't think it's making a difference at all. If anything, we're seeing more now than we had previously this year."

On Thursday, the Dow Jones Industrial Average fell 198.94 to close at 13,266.73 and the Nasdaq composite index gave up 45.80 to settle at 2,541.38. The Standard & Poor's 500 composite index dropped by 26.66 to close at 1,490.72.

NeoGenomics' $4 million deal

In other biotech news, NeoGenomics concluded a $4.005 million offering of 2.67 million shares.

The shares were sold at $1.50 each.

Noble Financial Group was the placement agent.

Proceeds will be used to repay $1.7 million in existing short-term debt. The rest will be used for general corporate purposes.

In other news, NeoGenomics entered into a $4 million credit facility with Wachovia Bank. The facility bears interest at Libor plus 302 basis points.

"The achievements we are reporting today represent a turning point in the evolution of NeoGenomics," said Robert Gasparini, the company's CEO, in a news release.

"I am delighted to report that our stock offering was well-received and significantly oversubscribed. Indeed, we are truly honored that so many institutional investors have elected to become shareholders in our company. To have the confidence of the institutional investment community at this state of our development is perhaps one of the greatest compliments that we could receive.

"Absent major new strategic initiatives, we believe this equity raise and the new debt facility will fully fund our business plan for the foreseeable future."

Based in Fort Myers, Fla., NeoGenomics is a cancer genetics diagnostics testing company.

U.S. Wireless' $9 million deal

Elsewhere, U.S. Wireless Data Inc. announced the completion of a $9 million private placement of senior secured debentures with warrants on behalf of subsidiary StarVox Communications, Inc.

The 10% debentures due Aug. 1, 2007 were sold to DKR Soundshore Oasis Holding Fund Ltd., SMH Capital Inc. and Trinad Capital Master Fund Ltd.

The investors received warrants for 2.52 million shares, exercisable at $0.01 each through June 1, 2012.

The company's stock remained unmoved at $0.0001 (Pink Sheets: USWCQ).

Based in New York, U.S. Wireless Data is a shell company currently looking to complete an asset acquisition, merger, exchange of capital stock or business combination.

Towerstream stock climbs

In secondary market action, Towerstream Corp.'s stock recovered some of its losses a day after the company announced a $40 million registered direct placement of stock.

The stock gained 5 cents to close at $4.00 (Nasdaq: TWER). On Wednesday, the stock fell 32.71%, or $1.92, to end at $3.95.

The offering includes shares priced at $4.00 each.

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

Lazard Capital Markets LLC is the lead agent for the deal, which is expected to wrap up on Monday.

Proceeds will be used to build out the company's target markets.

Towerstream, based in Middletown, R.I., is a fixed wireless service provider.

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