Derma Sciences looks for C$6.1 million from stock; Aspyra negotiates $2.78 million convertibles sale

By Laura Lutz

Des Moines, April 1 - Derma Sciences, Inc. led a slow day for PIPE deals with plans for a $6.1 million private placement of stock.

Aspyra, Inc., another medical technology company, announced a $2.78 million private placement of convertibles and warrants.

In the mining sector, Avnel Gold Mining Ltd. announced a $3 million term loan and a C$2.29 million stock placement.

Several Canadian mining companies also appeared in the day's news. Western Warrior Resources Inc. plans to raise C$2 million, and Selwyn Resources Ltd. plans to raise C$1.5 million.

Derma prices stock

Derma Sciences said it plans to sell 6.1 million shares at $1.00 each along with warrants for 3.1 million shares.

Each warrant will be exercisable at $1.20.

Settlement is expected April 2

Princeton, N.J.-based Derma manufactures and markets advanced wound-care products.

The company said it hopes to use some of the proceeds to broaden its licensing agreement with Comvita New Zealand, Ltd., Derma's commercialization partner for its Medihoney product, a wound and burn dressing.

Proceeds will also be used to expand the company's sales force and for general corporate purposes.

"The proceeds from this private placement will help ensure that we achieve our key strategic initiatives - to expand our sales force more rapidly and to maximize our growing success with the Medihoney brand," Derma chairman and chief executive officer Ed Quilty said in a news release.

Derma "continues to self-fund its research and product development costs on all other products in its product line, and does not anticipate a further need for finances beyond this one-time push for Medihoney," the release said.

"The time is right for Medihoney, and we decided not to wait," Quilty added in the release.

The company's shares lost 19 cents, or 19.19%, on Tuesday to close at $0.80 (OTCBB: DSCI).

Aspyra sells convertibles

Aspyra arranged to sell $2.78 million of secured convertible notes along with warrants for 5,045,454 shares, according to an 8-K filed on Tuesday.

The notes mature on March 26, 2010 and bear interest at 8%, compounded semiannually. They are convertible at $0.55 per share.

Each warrant is exercisable at $0.55 for five years.

Based in Calabasas, Calif., Aspyra provides clinical and diagnostic information technology for the health care sector.

The company also reported on Tuesday its results of operations for the quarter and year ended Dec. 31.

Those results showed decreased sales and increased losses compared to the previous year, but the company's interim chief executive officer said in a news release that this private placement provides reason for optimism.

"The completion of this new financing, along with continued strong maintenance renewal billings from our installed base give Aspyra the resources needed to return the company to profitable growth," James Zierick, the interim CEO, said it the release.

The company's stock slid 3 cents, or 6%, to close at $0.47 on Tuesday before gaining back 2.73 cents in after-hours trading (Amex: APY).

Avnel to bring C$2.29 million

Avnel Gold Mining announced plans for a C$2.29 million non-brokered private placement of shares.

The company plans to sell 6,542,857 ordinary shares to Elliott International, LP, Liverpool LP and two other existing shareholders for C$0.35 per share.

Avnel also said it received a $3 million secured term loan from Manchester Securities Corp.

The loan will mature on Dec. 31, 2009 and is secured by a security interest over all of the Avnel Gold Ltd. ordinary shares owned by the company and its interest in an intercompany loan agreement among Avnel Gold Mining, Avnel Gold and Société d'Exploitation des Mines d'Or de Kalana, SA.

Both deals are expected to settle on April 10.

Avnel is a gold exploration company based in St. Peter Port, Guernsey.

Its shares close C$0.01, or 4.11%, to finish Tuesday at C$0.35 (Toronto: AVK).

Western Warrior makes plans

Western Warrior Resources said it will conduct a C$2 million private placement of units.

The company plans to sell 8,695,652 units to MineralFields Group at C$0.23 per unit.

Each unit consists of one flow-through common share and one half-share warrant with each whole warrant exercisable at C$0.30 for one year.

The warrants may expire earlier if the company's shares trade at C$0.45 or higher on a volume-weighted average basis for any 10-trading-day period. In that case, the warrants will expire 15 calendar days after the company notifies holders.

The Calgary, Alta.-based mineral exploration company said it will use the proceeds for exploration

Its shares closed at C$0.24 on March 28, the date of the last trade (TSX Venture: WWR).

Selwyn to sell shares

Also in Canada, Selwyn Resources said it will raise C$1.5 million from a non-brokered private placement of shares.

The deal will consist of 8,333,333 flow-through shares at C$0.18 apiece.

Settlement is expected on April 17.

Selwyn, a Vancouver, B.C.-based exploration company, said it will use the proceeds for exploration.

The company's shares closed down C$0.01, or 8.11%, at C$0.17 on Tuesday (TSX Venture: SWN).

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