Sequenom's stock drops 9% after $30 million PIPE, earnings report; Calibre raises $6.32 million

By Sheri Kasprzak

New York, March 28 - Sequenom, Inc.'s stock took a tumble Tuesday after the company secured agreements for a $30 million PIPE and released its fourth quarter earnings report.

A group of investors, including ComVest Investment Partners II LLC, Pequot Private Equity Fund IV, LP and L BI Group, Inc., an affiliate of Lehman Brothers, agreed to buy 54,545,454 shares at $0.55 each, a 26.6% discount to the company's $0.75 closing stock price March 27. The investors also will receive warrants for 32,727,272 shares, exercisable at $0.70 each - a 6.6% discount to the same closing stock price.

The company's stock fell 9.33%, or 7 cents, to end at $0.68 (Nasdaq: SQNM).

"Their 70-cent warrants present a real nice opportunity," said one sellside trader. "Even so, these developments will generate significant buying interest. It looks like they probably have enough capital now for at least another year of operation."

"This financing commitment is a foundational element of our strategy and paves the way for execution of our business plan," said Sequenom's chief executive officer Harry Stylli in a statement.

The offering is scheduled to close May 31 and the proceeds from the deal will be used for working capital.

Word of the deal comes on the same day Sequenom's fourth quarter earnings report was released.

For the quarter ended Dec. 31, 2005, Sequenom reported a net loss of $7 million compared to a net loss of $6.6 million for the same quarter of 2004. Expenses for the quarter were $11.5 million, compared to $13 million for fourth quarter 2004.

Net revenues for the year ended Dec. 31, 2005 were $19.4 million, compared to $22.4 million for 2004.

On March 21, Sequenom received a warning from the Nasdaq Stock Market that it was in danger of being delisted because it failed to comply with Nasdaq's $1.00 minimum closing bid price following a 180-day grace period that ended March 15.

A hearing in the matter is expected to be conducted within the next 30 to 45 days.

San Diego-based Sequenom develops genetic analysis products used in prenatal testing, biomedical research, molecular medicine and agricultural applications.

Calibre completes $6.3 million

Meanwhile, in the oil sector, Calibre Energy, Inc. wrapped a $6,319,400 private placement as oil prices jumped almost $2.00 per barrel Tuesday.

Oil prices advanced $1.91 to settle at $66.07 per barrel, oil's highest level in almost two months.

"I expect in the next few days we'll see an influx of stuff [from energy issuers]," said one sellside market source based in Vancouver, B.C.

Meanwhile, Calibre sold 1,579,850 units at $4.00 apiece to institutional investors. The price per share - $2.00 - is a 28.5% discount to the company's $2.80 closing stock price Tuesday.

The units include two shares and one warrant with each warrant exercisable at $2.75 for two years.

Proceeds will be used for ongoing drilling at the company's Barnett Shale development in Texas.

The company's stock remained unchanged Tuesday at $2.80 (OTCBB: CBRE).

Houston-based, Calibre is an oil and natural gas exploration company.

Endeavour leads Canadians

Looking to the Canadian PIPE market, Endeavour Silver Corp. led activity, pricing a C$22.5 million special warrant offering after the close of market.

The deal includes 5 million special warrants at C$4.50 each.

Each special warrant is exchangeable for units of one share and one half-share warrant with each whole warrant exercisable at C$5.25 for 18 months.

The price per special warrant is a 9% discount to the company's C$4.95 closing stock price Tuesday and the warrants issuable upon exchange are exercisable at a 6% premium to the same closing stock price.

A syndicate of agents led by Salman Partners Inc. has a greenshoe for up to 2 million additional special warrants.

The special warrants are exchangeable once a prospectus covering the underlying shares is declared effective.

The offering is scheduled to close April 21.

Proceeds will be used for acquisition, exploration and development expenses on the company's silver projects in Mexico and for working capital.

Endeavour's stock fell 0.8%, or 4 cents, to end at C$4.95 (Toronto: EDR).

Vancouver-based Endeavour is a silver exploration company.

Adaltis wraps C$15 million PIPE

Moving away from the resources sector, Adaltis Inc. closed a C$15 million convertible debentures sale Tuesday.

The 8% debentures are due March 31, 2011 and are convertible at $3.10 each a 20.6% premium to the company's C$2.57 closing stock price on March 16. The conversion price is a 6.9% premium to the company's C$2.90 closing stock price March 27.

National Bank Financial Inc. and Loewen, Ondaatje, McCutcheon Ltd. were the agents for the deal.

The company's stock slipped 10 cents, or 3.45%, Tuesday to end at C$2.80 (Toronto: ADS).

Based in Montreal, Adaltis develops in vitro diagnostic products.

Sigma's C$6 million unit offering

Elsewhere in Canada, Sigma Ventures Inc., a veteran to the PIPE market, priced a C$6 million offering of units Tuesday after closing a C$1 million convertible debentures deal late last week.

The latest deal includes 10 million units of one share and one half-share warrant.

The whole warrants allow for the purchase of another share at C$0.85 each.

The unit price is a 10.4% discount to the company's closing stock price of C$0.67 on March 28 and the warrant strike price is a 26.8% premium to the March 28 stock price.

The deal is being placed through a syndicate of agents led by Rathlin Capital International Inc. and Jones, Gables & Co. Ltd.

Proceeds will be used for debt repayment and for working capital.

On March 24, Sigma settled a C$1 million offering of 8% convertible debentures. The debentures are convertible at C$0.60 each.

On March 17, the company completed its acquisition of Faroex Ltd. for C$6.9 million.

The stock closed unchanged at C$0.67 Tuesday (TSX Venture: SVX).

Based in Quebec City, Sigma is an investment company focused on the technology sector.

Keryx's stock falls 1.3%

A day after announcing an $82.8 million direct placement of its stock, Keryx Biopharmaceuticals, Inc.'s stock lost more than 1.3%.

On Tuesday, the company's stock dropped 1.32%, or 25 cents, to close out the session at $18.76 (Nasdaq: KERX).

Trading volume of the company's stock also dropped off on Tuesday with 352,976 shares traded compared to the average 362,775.

When the deal was announced Monday, the stock gained 53 cents, or 2.87%, to close at $19.01.

On Monday, 653,813 shares of Keryx were traded, compared to the average of 357,982 shares traded.

Under the terms of the placement, two institutions agreed to buy shares of Keryx at $18.40 each, on par with the company's closing stock price March 23.

The shares are being offered under the company's shelf registration.

The deal is non-brokered.

New York-based Keryx develops drugs used to treat diabetes and cancer. Sulonex is an oral heparinoid compound for the treatment of diabetic nephropathy, a life- threatening kidney disease caused by diabetes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.