Westside settles $10 million stock offering; ProMetic closes $10 million note sale for $8 million

By Sheri Kasprzak

New York, Jan. 10 - Westside Energy Corp. led private placement news on Tuesday, wrapping a $10,325,700 stock deal while ProMetic Life Sciences Inc. raised $8 million in proceeds from the sale of $10 million in convertible notes.

In the Westside deal, the company sold 3,278,000 shares at $3.15 apiece to 27 investors.

As of Nov. 9, 2005, Westside had 17,376,745 outstanding common shares.

The company plans to use the proceeds to acquire additional acreage, explore and develop its properties and provide working capital.

After the offering was announced early Tuesday afternoon, Westside's stock slipped 11 cents, or 2.93%, to end at $3.65.

On Nov. 2, 2004 Westside concluded a $20 million private placement of 10 million shares and granted warrants for 300,000 shares, exercisable at $2.00 each for five years.

In its most recent earnings report, Westside reported a net loss of $320,078 for the quarter ended Sept. 30, 2005 compared with a net loss of $405,995 for the same quarter of 2004.

Based in Houston, Westside is an oil and natural gas exploration, development, production and acquisition company.

Despite a dip Monday and Tuesday in oil prices, one market source based in Canada said energy offerings aren't out of the PIPE market yet.

"Energy stocks are still performing well, there's plenty of demand," he said.

Meanwhile, oil prices fell Tuesday after making some gains early in the session. Oil prices lost $0.13 to end at $63.37 per barrel. On Monday, oil prices fell $0.71 to end at $63.50 per barrel.

Heading to the biotechnology sector, ProMetic issued $10 million in senior secured convertible notes and pocketed $8 million from the discounted notes.

The zero-coupon notes were priced at 80 and mature in three years. For the first eight months, half of the principal of the notes is convertible into common shares at $0.27 each. After that period, the remainder will also be convertible at the same price. The investors also received warrants for 18,434,065 shares, exercisable for five years at $0.30 each.

T.R. Winston and Co. was the placement agent.

The closing of the private placement was announced Tuesday afternoon and ProMetic's stock gained 4.93%, or $0.0148, to end at $0.3148.

Based in Montreal, ProMetic is a biopharmaceutical company focused on developing technologies to eliminate pathogens.

Crdentia raises $4 million

Crdentia Corp. wrapped a $4 million private placement Tuesday.

The company sold 3,333,333 shares at $0.60 each and issued $2 million in 8% convertible debentures.

The company had 30,544,634 outstanding common shares as of Oct. 28.

The three-year debentures are convertible into common shares at $0.60 each.

With the debentures, the investors received warrants equal to half of the shares issuable upon conversion of the debentures. The warrants are exercisable at $0.60 each for five years.

Dawson James Securities, Inc. was the placement agent.

Proceeds will be used for debt retirement and working capital.

"We are pleased to have completed this financing which will enable us to continue to move forward with our plans to consolidate the health care staffing industry," said James Durham, the company's chief executive officer, in a statement. "Importantly, it also enables us to refinance our term debt which will substantially reduce our interest expense, taking us one step closer to meeting our near-term objective of achieving cash-flow positive status."

The company reported a net loss of $877,841 for the quarter ended Sept. 30, 2005, compared with a net loss of $9,773,370 for the quarter ended Sept. 30, 2004.

Based in Dallas, Crdentia provides staffing services to the health care sector.

The company's stock remained unchanged Tuesday at $1.60.

Phantom Fiber closes $3.5 million deal

Heading to the technology sector, Phantom Fiber Corp. wrapped a $3.5 million convertible note deal, and one market source said technology offerings may be making a comeback.

"We're seeing more and more," he said. "[Tech] stocks are improving and I think in general more [issuers] are pulling together some things."

In the Phantom Fiber deal, the company issued 1% notes to Magnetar Capital Master Fund, Ltd. and a number of accredited investors.

The closing was announced Tuesday morning and the company's stock gained 21.05%, or 12 cents, to settle at $0.69.

The notes mature in two years and are initially convertible into 7 million common shares at $0.50 each. The investors also received warrants for 7 million shares exercisable for three years. Half of the warrants are exercisable at $0.56 each and the other half at $1.50 each.

Oberon Securities, LLC was the placement agent.

Proceeds will be used for internal growth and the acceleration of product deployment.

"This financing provides the additional funding necessary to accelerate product deployments and mobile adoption across all clients," said Jeff Halloran, the company's CEO, in a statement. "Our number one priority is to increase profitability and growth and this can only be achieved by increasing market share through partner channels with additional sales, through increased mobile product deployments and through aggressive marketing and advertising activity."

Phantom Fiber, based in Toronto, develops wireless platform software used in global communications networks.

Fortress leads Canadians

Fortress Minerals Corp. led private placements among Canadian issuers, pricing a C$5 million stock offering.

The deal includes 4 million shares at C$1.25 each.

The company intends to use the proceeds for exploration on its properties in Russia and Mongolia. The remainder will be used for working capital.

Based in Vancouver, B.C., Fortress is a mineral exploration company.

On Tuesday, the company's stock gained 7.2%, or C$0.09, to close at C$1.34.

Sahara stock gains another 13%

A day after its stock shot up 41.5%, Sahara Energy Ltd.'s stock gained another 13.33% on Tuesday after the company upsized to C$1,035,000 a convertible debenture placement.

On Tuesday, the stock gained C$0.10 to end at C$0.85.

The debentures Sahara intends to sell are convertible into units of one share and one warrant at C$0.45 each. The warrants are exercisable at C$0.55 each for two years.

The deal was first announced Jan. 4 as a C$900,000 offering under the same terms.

Sahara's stock began trading on the Toronto Stock Exchange's Venture Exchange on Dec. 16.

Based in Calgary, Alta., Sahara is an oil and natural gas exploration company.

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