Callisto finalizes $5.16 million stock offering; sxr prices C$170.6 million PIPE

By Sheri Kasprzak

New York, Feb. 7 - Callisto Pharmaceuticals, Inc.'s $5.16 million private placement of stock led relatively light PIPE news Tuesday.

A group of institutional biotech investors bought 4.3 million shares at $1.20 each.

The company had 33,233,096 outstanding common shares as of Nov. 11.

Callisto issued to the investors 1.07 million warrants exercisable at $1.60 each for 18 months.

"We are pleased with the confidence and support this excellent group of investors has shown in Callisto by its participation in this financing," said chief executive officer Gary Jacob in a statement. "Callisto intends to use the net proceeds from the private placement to further the clinical trials of our two lead drug candidates, L-Annamycin and Atiprimod, and to finance other drug development activities."

After the offering was announced Tuesday afternoon, the company's stock dipped 2 cents, or 1.29%, to close at $1.53 (Amex: KAL).

Callisto recently reported a net loss of $3,320,569 for the quarter ended Sept. 30, 2005, compared with a net loss of $1,605,686 for the same quarter ended Sept. 30, 2004.

In the earnings statement, the company said it had not received any revenues for the quarter ended Sept. 30, 2005 or for the same quarter of 2004 because it had no commercial biopharmaceutical products. The company does not expect to have any products for "several years, if at all," the earnings report said.

New York-based Callisto develops treatments for cancer.

Moving to Canadian resources offerings, sxr Uranium One Inc. priced a private placement for C$170,595,000. The offering was announced in January as a C$65 million deal without any terms.

The company intends to sell 22.3 million shares at C$7.65 each. The shares are priced at a 2.3% discount to the five-day volume weighted average price of the company's stock.

The deal is being placed through a syndicate of agents led by BMO Nesbitt Burns Inc.

The placement is scheduled to close on Feb. 17.

Proceeds will be used for development of the company's Dominion uranium project and for general corporate purposes.

On Tuesday, the company's stock fell 3 cents, or 0.35%, to end at C$8.52 (Toronto: SXR).

Based in Toronto, sxr is a uranium exploration company.

Gold, oil prices fall

In the broader market, two major resources - oil and gold - suffered losses, something that may negatively impact PIPE volume later in the week.

"Didn't seem to make that much of a difference today," said one Canadian market source. "There are plenty of [resources] offerings out there today. It could mean fewer of these later this week."

After making some significant gains on Monday, oil prices took a turn, dropping $2.02 to end at $63.09 per barrel. On Monday, oil prices gained $0.83 to close at $66.20 per barrel.

Gold prices also took a dive, losing $19.50 to close at $550.70 per ounce.

Indeed, resources offerings made up the majority of private placements priced on Tuesday, including a C$25 million stock deal from U.S. Geothermal Inc.

The company intends to sell up to 25 million shares and at least 18.75 million shares to a group of institutions in the offering.

The offering was announced Tuesday morning, sending the company's stock down 10.83%, or C$0.13, to end at C$1.07 (TSX Venture: GTH).

Proceeds will be used for the continued development and construction of a project at Raft River, Idaho. The remainder will be used for working capital.

Based in Boise, Idaho, U.S. Geothermal develops alternative, renewable energy sources.

Dianor plans C$8 million deal

In the mineral sector, Dianor Resources Inc. priced an C$8 million placement of 4,347,827 units and 1,875,000 flow-through shares.

The units are priced at C$1.15 each and the shares at C$1.60 each. The units consist of one share and one half-share warrant, the whole of which is exercisable at C$1.70 each for 18 months.

Placement agent Westwind Partners Inc. has a greenshoe for up to 2,173,914 additional units and up to 1.25 million additional flow-through shares.

The offering is scheduled to close Feb. 21.

The company's stock Tuesday lost 14 cents, or 9.93%, to end at C$1.27 (TSX Venture: DOR).

Proceeds from the flow-through shares will be used for exploration on the company's Canadian properties. The proceeds from the units will be used for additional work on the company's Leadbetter diamond property in Ontario.

Based in Val d'Or, Quebec, Dianor is a diamond exploration company.

Castle Rock prices C$5 million offering

Castle Rock Petroleum Ltd. arranged a C$5,000,400 private placement Tuesday.

The company plans to sell up to 3,704,000 class A shares at C$1.35 each.

GMP Securities LP is the placement agent for the deal, which is expected to close Feb. 28.

Proceeds will be used for ongoing development and exploration. The rest will be used for general corporate purposes.

The stock closed unchanged at C$1.50 Tuesday (TSX Venture: RCK).

Based in Calgary, Alta., Castle Rock is an oil and natural gas exploration company.

PRB Gas stock rises

A day after completing a $22 million offering of senior secured convertible notes, PRB Gas Transportation, Inc.'s stock advanced slightly.

The stock gained 4 cents, or 0.69%, to close at $5.84 Tuesday (Amex: PRB).

On Monday, when the offering closed, the company's stock gained 2 cents to end at $5.80.

The notes are initially convertible into 3,142,857 shares at $7.00 each.

Denver-based PRB is an oil and natural gas development and production company.

VitalStream stock falls 1.9%

VitalStream Holdings, Inc.'s stock closed the day off almost 2% on Tuesday. The company completed a $14 million stock deal on Monday.

VitalStream's stock ended down 3 cents, or 1.91%, to settle at $1.54 Tuesday (OTCBB: VSTH).

When the offering closed on Monday, the company's stock remained unchanged at $1.57.

The company sold shares at $1.30 apiece to a group of new and existing investors, including Winslow Management Co., Crosslink Capital and Columbia Acorn Fund.

The price per share is a 17% discount to the company's closing stock price of $1.57 on Feb. 3.

Based in Irvine, Calif., VitalStream provides video and audio streaming products via the internet.

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