Millennium Takes Advancis Stake - TheStreet

Millennium Takes Advancis Stake

The news comes shortly after a big private placement.
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Israel Englander's Cayman Island-based hedge fund Millennium Partners has built a roughly 10% stake in drug maker

Advancis Pharmaceutical

(AVNC)

.

Millennium and its subsidiaries acquired a little over 4.8 million shares, as well as 900,000 warrants, in the Germantown, Md.-based antibiotic manufacturer, according to a filing with the

Securities and Exchange Commission

.

A spokesman for the roughly $5 billion Millennium Partners had no comment, and a call to Advancis CEO Edward Rudnic was not returned.

Last Monday, Advancis disclosed that it raised $24 million by privately placing 10.2 million shares, and warrants for an additional 7.6 million shares, at a price of $2.36375 per unit. The warrants, which have a five-year term and an exercise price of $2.27 per share, allow holders to purchase 0.75 shares of common stock.

In a statement regarding last week's private placement, Rudnic said, "Coupled with our already-announced cost reduction initiatives, we believe the proceeds from this financing will provide sufficient capital to fund our operations through the first quarter of 2008, barring any unforeseen developments."

Rudnic added that the proceeds from the sale "allows us to explore other strategic alternatives."

Advancis did not identify buyers.