Growth Capitalist (https://growthcapitalist.com/tag/pipe/page/102/)
Cempra (CEMP) announced that it has raised $25.1 million in a Common Stock transaction. The common stock was sold at $6.50 per share, an approximate
17% discount to the market price ($7.81) of CEMP at deal announcement. Jefferies & Company, Cowen and Company and Stifel Nicolaus Weisel acted as agents on the transaction. The Placement is subject to customary closing conditions and is expected to close by Oct. 24, 2012.
Research Frontiers (REFR) announced that it has raised $5.6 million in a Common Stock transaction. The common stock was sold at $4.49 per share, an approximate 0.44% discount to the market price ($4.51) of REFR at deal announcement. A series of 250,000 60-Month Warrants with an exercise price of $6.73 per share (49.22% premium) was issued to the investors in this transaction. Craig-Hallum Capital Group acted as the exclusive agent on the transaction. The transaction closed on Oct.
NIR Group founder Corey Ribotsky filed court documents contesting the Securities and Exchange Commission's claims that Ribotsky mislead PIPE fund investors and diverted over $1 million in clients' assets. Funds managed by NIR, which include four AJW entities and New Millennium Capital Partners II, committed $225 million to
144 PIPEs from 1999 through 2010, according to PlacementTracker data. In August, the commission filed an amended complaint (reported here) containing previously made allegations that Ribotsky engaged in fraudulent accounting, lied to investors and stole over $1 million from one of his funds. New allegations included further details about the regulator’s claims that Ribotsky derived management fees from phantom gains and engaged in improper accounting. Ribotsky's answer to the revised complaint denied over 100 allegations, mostly without comment, and responded to others by stating that allegations required a legal conclusion or were addressed in documents already in the hands of regulators.
Some $30 million entrusted to a money manager for bond investments was allegedly dissipated through actions including use of funds to prop up the price of a thinly traded stock so the manager could get out of his own position in the same issue. Sebastian Holdings principal Alexander Vik filed a suit accusing Michael Kugler and his Connecticut-based KJM Advisors of investing the $30 million outside a fixed income mandate, misrepresenting the value of the account, and using funds to buy shares of equities including Frankfurt-listed BKN International AG and U.S.-based PIPE issuer U.S. Precious Metals (USPR). Vik's Turks and Caicos Islands-based Sebastian Holdings filed the complaint in the New York State Supreme Court on Sept. 28. BKN was an animation company that issued PIPEs in 2005 and 2008.
