Pharming to enter PIPE market; Harte Gold settles tranche; Equatorial Palm to raise £5 million

By Stephanie N. Rotondo

Portland, Ore., May 27 - Issuers outside the United States dominated Thursday's PIPE market, as companies from countries such as the Netherlands and Canada sought financing.

Pharming Group NV said it would soon be coming to the PIPE market for funds up to €12 million. The company said it had already received interest from potential investors regarding a private placement of equity.

Meanwhile, Harte Gold Corp. closed on the first tranche of its planned C$5.5 million private placement of units and stock. In the first closing, the company pocketed nearly C$4 million. The proceeds will be used to make a required payment in regards to a planned acquisition, as well as for exploration purposes.

Equatorial Palm Oil plc announced a £5 million private placement of equity. The company will sell ordinary share to a single investor.

Also, Canada Zinc Metals Corp. brought a C$3 million private placement of units to market. A company spokesperson said that the price-per-share was at a significant premium to the market.

And, Gold Canyon Resources Inc. said it was seeking C$2 million from a private placement of units. The funds will be used for exploration.

Pharming to enter PIPE market

Pharming Group intends to conduct a private placement of equity for proceeds of up to €12 million, according to a press release.

The Leiden, the Netherlands-based biotechnology company said it had already received a number of "pre-commitments" from existing and new shareholders. Investors will be required to subscribe for a minimum of €50,000.

"Pharming expects to be able to make further announcements on the intended offering shortly," the company said in the release.

Proceeds will be used for corporate activities, including for the ongoing regulatory approval processes and start of commercialization of Rhucin, and selective development of subsequent indications of rhC1 inhibitor.

Harte settles first tranche

Harte Gold took in C$3.88 million in the first tranche of its C$5.5 million non-brokered private placement of units and equity, the company announced.

The final closing is expected by June 10.

The Toronto-based company is selling 45 million units at C$0.10 each. The units will consist of one common share and one half-share warrant.

Whole warrants are exercisable at C$0.15 for 18 months.

In the first tranche, approximately 38.79 million units were issued.

The company is also selling 8 million flow-through common shares at C$0.125 per share.

According to Tim Campbell, vice president and secretary of Harte Gold, about C$2 million of the proceeds will be used to make a payment to Corona Gold Corp. The payment is in consideration for Harte's purchase of Corona's 51% interest in the Sugar Zone Property in White River, Ontario. Harte currently owns a 49% interest in the property.

Campbell said the "balance will be used for exploration and working capital."

Harte's stock (TSX Venture: HRT) gained a cent, or 3.85%, to C$0.14. Market capitalization is C$7.84 million.

Equatorial Palm to raise £5 million

London-based Equatorial Palm Oil is seeking £5 million via a private placement of stock.

BioPalm Energy Ltd., a fully owned subsidiary of Indian conglomerate the Siva Group, is the sole investor.

The company will sell approximately 33.33 million ordinary shares to the investor at 15p per share. The price per share represents a 42.9% premium over the May 26 closing price.

"The funds will be used for the continued development of the company's 169,000 hectare land position and the acceleration of the plantation rollout program," the company said in a press release.

"We are very pleased with the investment by the Siva Group, a major Indian conglomerate which has a strong understanding of the palm oil sector, EPO's strategy and its potential," remarked Michael Frayne, chairman, in the release. "The subscription will provide additional capital for the development of our 169,000 hectare land position in Liberia and the acceleration of the plantation rollout program.

"These are exciting times for palm oil operations in West Africa and particularly in Liberia, where major corporations such as Sime Darby and Golden Agri have announced significant palm oil investment plans," he added. "The global demand for palm oil continues to rise, and the need for new plantation developments such as ours has been identified by the Siva Group as an attractive opportunity."

Equatorial's equity (London: PAL) closed at 12.75p. Market capitalization is £12 million.

Canada Zinc seeks C$3 million

Canada Zinc Metals announced a C$3 million private placement of units.

Canada Zinc will sell 5 million units at C$0.60 each. The units will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.80 for 18 months.

"The proceeds of the private placement are anticipated to be used for further exploration of the Akie Sedex zinc-lead deposit and for working capital purposes," according to a press release.

Peeyush Varshney, chief executive officer and chairman, told Prospect News the company chose to find funding via the PIPE market as "we were being offered money at about a 35% premium to our market price.

"And, obviously, we wanted funding to advance our projects as well."

"Most people see this as a very positive thing," he said of investors' reaction to the deal, given that "we're raising money at a higher price than what we are trading at."

Canada Zinc's shares (TSX Venture: CZX) improved by 6 cents, or 13.79%, to C$0.50. Market capitalization is C$41 million.

Canada Zinc Metals is a Vancouver, B.C.-based mineral resource exploration company.

Gold Canyon plans unit sale

Gold Canyon Resources will raise C$2 million from a private placement of units, according to a press release.

The company will issue 6.25 million of the units at C$0.32 each. The units will hold one flow-through common share and one half-share warrant.

Whole warrants are exercisable at C$0.42 for two years.

Proceeds will be used for exploration activities at Gold Canyon's Springpole Gold Project in the Red Lake Mining District of Ontario.

Gold Canyon's equity (TSX Venture: GCU) fell 2 cents, or 7.41%, to C$0.25. Market capitalization is C$16.9 million.

Gold Canyon Resources is a Vancouver, B.C.-based mineral and precious metals exploration company.

© 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.