Qiao Xing Universal pockets $50 million; Electro-Optical seals $13.18 million PIPE

By Sheri Kasprzak

New York, Nov. 1 - Heading up PIPE activity Wednesday was a $50 million private placement of stock and convertibles from Qiao Xing Universal Telephone, Inc.

The securities were sold to DKR Soundshore Oasis Holding Fund Ltd. and Cedar DKR Holding Fund.

The Chinese telecommunications equipment company issued 2 million shares at $12.00 each in the deal.

Investors received warrants for 400,000 shares, exercisable at $14.30 each for four years.

The company also issued $26 million in 4.5% convertible notes. The notes are due April 30, 2009 and are convertible at $14.30 each.

Worldwide Gateway Co., Ltd. was the placement agent.

On Wednesday, the company's stock gave up 56 cents, or 3.62%, to close at $14.89 (Nasdaq: XING). In after-hours activity, the stock gained 5 cents.

Proceeds will be used to acquire Qiao Xing Mobile Communications.

Qiao Xing has tapped the private placement market for capital before. In April, the company issued $40 million in convertible notes. Those notes are convertible at a price equal to 115% of the volume weighted average price for the five trading days after a term sheet is signed. Worldwide was the placement agent for that offering as well.

Located in Guangdong, China, Qiao Xing develops and distributes telecommunications products.

Electro-Optical's $13.18 million PIPE

Moving to the biotech sector, Electro-Optical Sciences, Inc. is gearing up to wrap a $13,180,589 private placement of its stock.

The company is one of two medical device companies conducting a PIPE transaction Wednesday.

After news of the Electro-Optical offering was announced in the morning, the stock gained 14 cents, or 2.43%, to end at $5.90 (Nasdaq: MELA).

The company plans to sell 2,312,384 shares at $5.70 each. The price per share is only a slight premium to the company's $5.76 closing stock price on Tuesday.

The investors in the deal will also receive warrants for 346,858 shares, exercisable at $6.70 each for five years. The strike price of the warrants represents a 16.3% premium to the company's closing market price on Tuesday.

Jefferies & Co., Inc. was the placement agent.

Proceeds will be used for general corporate purposes.

Located in Irvington, N.Y., Electro-Optical is a medical device company focused on developing non-invasive, point-of-care instruments to diagnose melanoma.

PhotoMedex to raise $11.46 million

In another medical device offering, PhotoMedex, Inc. saw its stock slip after announcing its plans to settle a $11,466,000 stock offering.

The stock gave up 6.62%, or 9 cents, to close the day at $1.27 (Nasdaq: PHMD).

The company plans to issue 9.8 million shares at $1.17 each to institutional investors and warrants for 2.4 million shares.

The warrants are exercisable at $1.60 each.

The offering is scheduled to close Thursday.

Cowen & Co., LLC was the placement agent.

Proceeds will be used for working capital.

"We now have the working capital to increase the size of our sales force and accelerate our launch of the XTRAC laser system," said Jeff O'Donnell, the company's chief executive officer, in a statement. "In addition, we plan on expanding our surgical services business to take advantage of a national laser services contract."

Based in Montgomeryville, Pa., PhotoMedex develops laser and fiber optic systems used to treat psoriasis, vitiligo, atopic dermatitis and leukoderma.

Antigenics' stock ends up

Elsewhere in biotech news, Antigenics Inc.'s stock ended the day up slightly, a day after announcing a $25 million private placement of convertible notes.

The stock gained a penny, or 0.46%, to end the session at $2.20 (Nasdaq: AGEN). On Tuesday, the stock climbed 18 cents, or 8.96%, to end at $2.19.

Along with the placement announced Tuesday, the company also posted its third-quarter earnings.

In the offering, the company sold convertible notes to Ingalls & Snyder Value Partners LP and Penrith Ltd. with a conversion price of $3.50. The conversion price represents a 74% premium to the company's $2.01 closing stock price on Monday.

Antigenics posted a net loss of $11.2 million for the third quarter, compared with a net loss of $17.5 million for the corresponding 2005 quarter.

New York-based Antigenics develops treatments for cancers, infectious diseases and autoimmune disorders.

Triton wraps C$4 million deal

Looking to Canadian energy offerings Wednesday, Triton Energy Corp. concluded a C$4 million private placement of flow-through stock

The company issued 3,137,256 shares at C$1.275 each, including the greenshoe for 784,314 shares exercised by a syndicate of underwriters led by Acumen Capital Finance Partners Ltd. and CIBC World Markets Inc.

Proceeds will be used for ongoing exploration.

On Wednesday, the stock gave up 9 cents, or 5.3%, to close at C$1.61 (TSX Venture: TEX).

Calgary, Alta.-based Triton is an oil and natural gas exploration company.

In secondary energy offerings, RSX Energy Inc. watched its stock drop after pricing a C$12.15 million offering on Tuesday.

The stock lost 15 cents, or 4.62%, to close at C$3.10 (TSX Venture: RSX). On Tuesday, when the deal priced, the stock gained 5 cents, or 1.56%, to end at C$3.25.

In the placement, the company plans to issue shares at C$4.05 each through a syndicate of underwriters led by Raymond James Ltd.

The deal is set to close Nov. 17.

Proceeds will be used for ongoing exploration.

Calgary.-based RSX is an oil and natural gas exploration company.

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