Genta stock dives after $10.8 million stock offering; AFP Imaging secures $8 million from PIPE

By Sheri Kasprzak

New York, March 14 - Genta Inc. saw its stock fall more than 20% on Wednesday after the company announced its plans to close a $10.8 million direct placement of shares.

The stock dropped 21.23%, or 10 cents, to settle at $0.37 (Nasdaq: GNTA). In after-hours trading, the stock edged up a little more than a penny.

The stock began its descent early, losing 19.15% in pre-market activity.

In the placement, a group of institutional investors agreed to buy 30 million shares at $0.36 each, a 21.7% discount to the company's $0.46 closing stock price on Tuesday.

The shares are being sold under the company's shelf registration, and the deal is expected to wrap up on Friday.

Rodman & Renshaw, LLC is the placement agent.

"It's not exactly the greatest time in the world to be doing these offerings," said one sellside market source. "And it's probably a less-great time for some companies than others. But you have to settle for what you can get."

Proceeds will be used to diversify and develop the company's product portfolio. Proceeds may also be used for research and development, commercialization, licenses and acquisitions of products, technologies or businesses. The rest will be used for general corporate purposes.

Berkeley Heights, N.J.-based Genta is a biopharmaceutical company focused on treatments for cancer.

AFP to raise $8 million

Elsewhere in the biotech sector, medical device company AFP Imaging Corp. secured $8 million from an offering of 5.5 million shares.

The exact share price could not be determined by press time Wednesday but is about $1.45 per share.

Proceeds will be used for the acquisition of Quantitative Radiology, an Italian company.

The completion of the offering is contingent upon the closing of the acquisition, which the company expects within the next 30 to 45 days.

"We are very pleased with the relationship we have developed with the Scandinavian investors," said David Vozick, the company's chairman, in a statement.

"The contemplated equity investment is anticipated to be utilized to fund the growth in our new three-dimensional dental imaging product line. These in-office CT scanners are sold worldwide under the trademark NewTom 3G, which indicates that it is a third-generation product line."

Vozick said that with the addition of Quantitative Radiology, AFP will "benefit from an expanded global sales and distribution network."

The company's stock gave up 5.71%, or 10 cents, to end the day at $1.65 (OTCBB: AFPC).

Based in Elmsford, N.Y., AFP is a digital imaging company focused on products used by dental and medical facilities.

e-Future closes $10 million deal

Moving to the tech sector, e-Future Information Technology Inc. pocketed $10 million from a private placement of senior convertible notes.

The five-year notes were sold to three funds associated with two institutional investors.

The notes bear interest at 3% for the first year, at 5% for the second year, at 7% for the third year and at 10% for the fourth and fifth years.

The notes are convertible into 400,168 common shares at $24.99 each.

The investors also received A warrants for 184,077 shares, exercisable at $28.25 each through Sept. 9, 2012 and B warrants for 230,097 shares, exercisable at $24.99 each for 12 months after the effective date of the registration statement, beginning Sept. 9, 2007.

Westminster Securities Corp. was the placement agent.

Proceeds will be used for working capital and general corporate purposes, which may include strategic acquisitions.

The company's stock slipped $1.76, or 8.26%, on Wednesday to close at $19.56 (Nasdaq: EFUT). The stock gained 13 cents in after-hours trading.

"We are pleased to have completed this financing transaction," said Adam Yan, the company's chief executive officer, in a news release. "We believe that this transaction provides us with the capital we need to further develop our organic growth and enhances our flexibility to make appropriate strategic acquisitions. In addition, this transaction solidifies our institutional shareholder base and gives us strong financial partners to work with in the future."

Beijing-based e-Future develops supply chain management software in China.

Robcor stock climbs

A day after announcing a $20 million private placement of stock, Robcor Properties, Inc.'s stock settled higher.

The stock gained 5%, or 10 cents, to close at $2.10 (OTCBB: RBCR). The stock fell $1.50, or 42.86%, to settle at $2.00 on Tuesday after the offering was announced.

Volume remained elevated on Wednesday with 3,900 shares traded compared with the average 121.667 shares. There were 6,000 shares traded Tuesday.

Steve Horvitz, the company's chief financial officer, said he could not comment on the offering Wednesday.

"We hope to be able to open a dialogue soon," he noted.

In the placement, which was conducted as part of a reverse merger with Redpoint Bio Corp., Robcor issued shares at $0.81 each, a 76.8% discount to the company's $3.50 closing stock price on Monday.

Under the merger terms, Robcor issued 35.1 million shares to the stockholders of Redpoint. Redpoint will now be a wholly owned subsidiary of Robcor.

National Securities Corp. and Brean Murray, Carret & Co., LLC were the placement agents.

Proceeds from the placement will be used for Redpoint's research and development and for working capital.

Redpoint Bio is a development-stage biotechnology company using advanced technology to discover and develop novel taste enhancers for the food, beverage and pharmaceutical industries.

CanMex prices C$20 million deal

Heading north of the border, CanMex Minerals Corp. negotiated the terms of a C$20 million stock offering Wednesday.

The deal sent the company's stock up by more than 2%, or 10 cents, to close at C$5.00 (TSX Venture: CXM).

The company plans to sell 4 million shares, on a non-brokered basis, at C$5.00 each, a slight premium to the company's C$4.90 closing stock price on Tuesday.

Proceeds from the deal will be used for the company's work program on the Nogal and Dharoor oil projects in Puntland, Somalia. The rest will be used for working capital.

Vancouver, B.C.-based CanMex is an oil and natural gas exploration company.

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