Volume picks up following holiday weekend; Sirna Therapeutics raises $28 million

By Sheri Kasprzak

New York, July 5 - PIPE volume picked up again Tuesday as market insiders headed back to work following a three-day weekend.

"Just backlog from the holiday," said one sell-sider of why volume picked up suddenly after a lull on Friday. "The day before a long weekend, people have absolutely no interest in getting things out there, but the day things start up again, there tends to be a pretty heavy slate."

In Canada, when the stock market was open Monday, natural resource deals led offerings, pushed by higher oil prices on Friday.

Even so, gold companies may not be seen in the market as much as they had been, according to one sell-side source. Gold prices continued a downward trend Tuesday. Gold issuers, however, had been a frequent presence in the PIPE market in the previous two weeks.

"It probably has more to do with need and the actual companies themselves than any trend," said one sell-sider familiar with natural resource issuers. "I hardly think if gold continues to go the way it has been these past few days that there will be a trend of [PIPE] issuance."

Oil companies were also in the game Tuesday and may stay there for a while, sell-siders said. Oil prices continued to march forward, gaining $0.84 to end at $59.59 per barrel.

Meanwhile, in the biotech sector, Sirna Therapeutics, Inc. led private placement news with word that it has secured $28 million from institutional and venture investors.

The company sold 17.5 million shares at $1.60 each.

The investors also received warrants, but the full details of those warrants could not be determined by press time Tuesday.

The deal is expected to close later this week.

Based in Boulder, Colo., Sirna is a biotechnology company focused on developing therapies using RNA interference technologies.

Sirna's stock closed down $0.05 at $1.62 on Tuesday.

PDG closes $7 million deal

Pittsburgh's PDG Environmental, Inc. has wrapped a private placement of common and preferred stock for $7,003,000, the company said Tuesday.

The offering included 1.67 million common shares at $0.90 each and $5.5 million in convertible preferred stock.

The preferred pay annual dividends at 8% and are convertible into common shares at $1 each.

The investors also received warrants for 3.6 million shares, exercisable at $1.11 each for half and $1.33 each for the remainder. The warrants expire in five years.

"With this new capital, PDG Environmental will be in a position to accelerate our growth and ongoing diversification into the mold/restoration industry," said John Regan, the company's chairman and chief executive officer, in a statement. "In January, PDG Environmental announced a letter of intent for the acquisition of a southwest-based restoration contractor pending financing. With the new capital, we will hopefully be in a position to conclude the acquisition in the near future."

Rodman & Renshaw, LLC was the placement agent.

Based in Pittsburgh, PDG is an environmental and specialty contractor focused on asbestos and lead abatement, insulation, demolition and other services of the kind.

PDG's stock closed down $0.14 at $0.94 Tuesday.

FemOne raises $1.5 million

FemOne, Inc. closed a $1.5 million convertible note offering.

The company sold 8% secured convertible notes, due in three years and convertible into common shares at the lesser of the three lowest intraday trading prices 20 trading days before conversion or $0.40 each.

The investors also received warrants for 44 million shares, exercisable at $0.25 each for five years.

"The raising of equity financing gives us additional capital to focus on the continued growth of our business and the global expansion of our Biopro Technology division," said Ray Grimm, the company's chief executive officer, in a statement. "There is a strong global interest in our products and we are dedicated to taking advantage of these international opportunities in a focused and efficient manner."

The proceeds will be used for business operations and expansion.

Based in Carlsbad, Calif., FemOne is a marketing company.

FemOne's stock closed unchanged $0.017 Tuesday.

VRB plans C$10.2 million deal

Heading up private placement news in Canada, VRB Power Systems Inc. said it plans to raise C$10,200,240 in a stock offering.

The company plans to sell 14,167,000 shares at C$0.72 each.

Based in Vancouver, B.C., VRB is an electrochemical energy storage company.

After the offering was announced Tuesday morning, VRB's stock dipped two pennies to close at C$0.88.

True North closes C$1.3 million deal

Mississauga, Ont.-based True North Corp. closed a C$1.3 million convertible debenture offering Tuesday.

The company sold the 8% debenture to the Quorum Group of Cos. The debenture matures on Dec. 15, 2009, and is convertible into common shares at C$0.35 each in the first year; C$0.385 each in the second year, C$0.4235 each in the third year; C$0.46585 each in the fourth year and C$0.512435 each in the fifth year.

"I'm extremely happy that Quorum has chosen to make this investment in True North," said Mark Anthony, the company's chief executive officer, in a statement. "This financing will allow True North to continue to pursue its growth strategy of seeking synergistic acquisitions, as well as reduce our overall borrowing costs. With Quorum on board, we're in a great position to achieve our growth objectives."

True North is a marketing and communications company.

Ronco's stock dips

After announcing the closing of a $50 million private placement on Friday, Ronco Corp.'s stock was sliced and diced Tuesday.

The company's stock slid $2.90, or 28.57%, to end at $7.25 Tuesday.

On Friday, the company announced it had sold preferred stock at $3.77 each. The preferreds are convertible into common shares at $3.77 each. After the deal was announced Friday, the company's stock closed up $1.25 to close at $10.15.

"You have to keep in mind," said one market source who saw the Ronco deal on Tuesday, "their stock was responding to a few things, not just the PIPE."

The source was referring to news that Ronco had also completed its merger with Fi-Tek Inc.

Ronco, based in Chatsworth, Calif., is a direct response marketing company that sells consumer goods via infomercials.

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