China Sky One seals $25 million stock offering; IDO raises $5.4 million from convertibles

By Sheri Kasprzak

New York, Feb. 1 - Rounding out the week in PIPEs was a $25 million offering closed Friday by China Sky One Medical, Inc.

The company issued 2.5 million shares at $10 apiece along with three warrants for every 10 shares. Each of those warrants is exercisable at $12.50 for three years.

Global Hunter Securities was the agent.

Proceeds will be used for acquisitions, working capital, and sales and marketing for new products.

China Sky's stock remained unmoved on Friday at $12.10 (OTCBB: CSKI).

Los Angeles-based China Sky One is a holding company for nutraceutical and medicinal products companies.

The offering is one of quite a few health care related offerings in the pipeline this week.

"Drug stocks have been lower, and it's not necessarily the drug companies doing these," said one market insider.

"I've seen more things like medical device companies. There have been a few drug companies out there, but I wouldn't say drug companies are making up a big portion of the market right now."

On Thursday, Cardium Therapeutics announced plans to price a $5.31 million direct placement of stocks and warrants with institutional and other accredited investors.

The company said it will sell 2.655 million shares at $2.00 each and issue warrants for 929,250 shares, exercisable at $2.00 each for five years.

Empire Asset Management Co. is the placement agent.

Proceeds will be used for the development of the company's ongoing programs and for general corporate purposes.

VisCorp's deal

Earlier in the week, pharmaceutical company VisCorp, Inc. closed the second tranche of its $15.23 million private placement for $5 million, selling 152.25 note units at $100,000 each, comprised of $100,000 principal pf 10% convertible notes due June 30, 2009, five-year class A warrants for 31,250 shares and seven-year class B warrants for 31,250 shares.

The five-year warrants are exercisable at $2.50 each and the seven-year warrants at $3.00 each.

Proceeds will be used for working capital and general corporate purposes.

The notes were touted as a "bright light in a bad market" by the broker-dealer, TriPoint Global Equities.

In an interview with Prospect News earlier this week, Mark Elenowitz with TriPoint Global said the company has 40% growth every year and has 22 drugs in the Chinese national catalog with several up for approval by the Chinese government. The units were priced at four times the weighted projection, according to Elenowitz.

VisCorp is based in Sewickley, Pa. The company produces pharmaceuticals in the People's Republic of China.

IDO raises $5.4 million

In other U.S. offerings, IDO Security Inc. settled an offering of about $5.4 million from the private placement of convertibles from Dec. 5 through Jan. 24, according to a filing from the Securities and Exchange Commission released Friday.

The 10% two-year secured convertible promissory notes are convertible into common stock at $1.00 per share.

IDO will be required to make monthly principal payments equal to 5% of the principal amount, beginning four months after issuance.

The investors also received warrants for 5,404,550 shares. Half of the warrants have a strike price of $2.00 and half have a strike price of $3.00.

Some of the proceeds were used to repay bridge loans that came due in November. The rest will be used for general corporate purposes.

All of the holders of those bridge notes, as well as other bridge notes that came due in January, participated in the placement.

The stock closed unchanged at $2.98 Friday (OTCBB: IDOI).

New York-based IDO develops technologies to detect metallic objects in footwear, ankles and feet.

Versadial closes first tranche

Versadial, Inc. pocketed $2.8 million from the initial tranche of a planned $5.5 million private placement of units, a filing with the SEC said Friday.

The company sold 1.75 million units at $1.60 apiece. Each unit consists of one share and one warrant for two-tenths of a share. Each whole warrant will be exercisable at $2.00 per share for five years.

Fursa Master Global Event Driven Fund, LP bought 1.25 million units in the first tranche and committed to buy 1.25 million units in a future tranche.

Versadial's stock didn't move on Friday, closing at $1.05 (OTCBB: VSDL).

Versadial is a New York-based manufacturer of dispensers that blend liquids for industrial purposes.

Fortress, other resources offerings price

Elsewhere, Fortress Minerals Corp. priced a C$13 million offering of stock Friday.

The company plans to sell 10 million shares in the non-brokered deal, according to a statement from the company. Of the total, Vostok Nafta Investment Ltd. will buy 6 million shares.

Proceeds will repay in full a loan announced Jan. 8 and will also fund ongoing work at the company's Svetloye project in Russia. The remainder will be used for working capital.

The stock fell by 8 cents on Friday, or 5.76%, to end the day at C$1.31 (TSX Venture: FST).

In other resource news, EnerGulf Resources Inc. reported that it sealed an C$8.8 million offering, selling 8 million units at C$1.10 apiece.

The units consist of one share and one warrant, with each warrant exercisable at C$1.35 for one year.

EnerGulf plans to use the proceeds for drilling, exploration and working capital.

The oil and gas exploration company is based in Houston.

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