Enhanced Oil to raise C$25 million; MannKind to sell $250 million private placement of stock

By LLuvia Mares

New York, Oct. 3 - It was news as usual in the PIPEs sector Wednesday after several Canadian deals hit the market. Sources said that with Thanksgiving around the corner in Canada, a slowdown is expected at the end of the week.

In other news, the oil and mining sections are still striking gold in the market. Enhanced Oil Resources Inc. announced it plans a C$25 million private placement of units.

"We were approached by some large institutions looking to invest money in us and felt that they were large enough that we didn't want to say no to the opportunity," Don Currie, the company's vice president of corporate communications, told Prospect News.

"I think our business plans show that we are emulating ourselves after Denbury Resources and I think that we have made some substantial strides in starting that model off right. They were basically where we were six years ago and now they are at a $5 billion market cap and we are at a $150 million market cap, so if management executes on the business plan we are sure we will be able to show the market some increased value."

In the private placement, the company will sell 13,888,888 units of one share and one half-share warrant at C$1.80 per unit. Each whole warrant will be exercisable at C$2.50 for two years.

Expiry of the warrants may be accelerated to 30 days if the company's share price is at least C$0.75 for 20 consecutive trading days at any time more than four months after closing.

Enhanced Oil's stock (TSX Venture: EOR) closed at C$1.78 Wednesday, down C$0.05 from C$1.83 on Oct. 2.

Union Securities Ltd. will be the agent.

Proceeds will be used for oil field acquisitions, development and general working capital.

Currie said the company is actively looking into some acquisitions and future development plans.

Enhanced Oil, formerly Ridgeway Petroleum Corp., is a helium and carbon dioxide appraisal and development company based in Houston.

MannKind to issue $250 million

In the pharmaceutical sector, MannKind Corp. announced it is offering a total of $250 million of stock in direct placements.

The company plans to issue a total of 27,014,686 shares to Alfred E. Mann, the company's chief executive officer and funds affiliated with Legg Mason Capital Management Inc. and Fidelity Management & Research Comp.

MannKind will sell 15,940,489 shares to Mann at $9.41 each, totaling $150 million, and 11,074,197 shares to the other investors at $9.03 per share, totaling $100 million. No warrants were included.

The company's stock (MNKD) closed at $10.85, up $0.75 from Tuesday's $10.10 close and $9.41 from Monday when the deal was priced.

In addition, the company entered into a loan agreement with Mann to borrow up to $350 million before Jan. 1, 2010. Interest is at one-year Libor plus 300 basis points.

Valencia, Calif.-based MannKind is a biopharmaceutical company specializing in the discovery, development and commercialization of therapeutic products for diseases.

Living Cell plans A$9.8 million

Living Cell Technologies Ltd. is also in the negotiation stage after announcing it plans to sell A$9.8 million private placement of shares to investor NaviGroup Management Ltd.

"The placement will extend our international shareholding and bring in new sophisticated investors that are supportive of DiabeCell's clinical development," said Dr. Paul Tan, company chief executive officer, in a press release. "The full amount would alleviate LCT's capital requirements for the near-term period and the company will not need to raise additional funds for some period."

The private placement will consist of an initial A$2.4 million to settle within 30 days of Wednesday's announcement. One or more additional tranches equaling up to A$7.4 million might follow the first tranche, for a total potential closing of A$9.8 million.

In the initial tranche, the company sold 22,400,000 ordinary shares at A$0.11 each.

Future tranches will be priced at the lower of A$0.20 per share or 80% of the 30-day average closing bid price per ordinary share.

Living Cell's stock (Australia: LCT) closed at A$0.1550 Wednesday, down from Tuesday's A$0.165.

Proceeds will be used as working capital.

Based in Victoria, Australia, Living Cell develops live cell therapies used to replace or repair damaged human tissues.

Allegiance wraps A$30.24 million

Allegiance Mining NL announced it has completed a A$30.24 million private placement of shares. Merrill Lynch International (Australia) Pty Ltd. was the manager of the deal.

The company sold 42,000,000 ordinary shares at A$0.72 each.

"This placement, together with the project funding from Societe Generale/ANZ, completes all funding arrangements required to take Allegiance Mining NL into production early in 2008 and to continue and

accelerate both regional and near mine exploration," said David Deitz, company executive director, in a press release.

Tony Howland-Rose, Allegiance Mining chairman said: "With full project funding in place and an enthusiastic and highly competent implementation team pushing ahead at Avebury, the future never looked better."

Allegiance is a mining company based in Sydney, Australia.

Titan Energy plans up to $10 million

Titan Energy Worldwide, Inc. announced it plans to raise between $1 million and $10 million in a private placement of units.

The company will sell 100 to 1,000 units of series D preferred stock for $10,000 apiece. Each unit is convertible into 10,000 common shares.

Subscribers will also receive one type A warrant, exercisable at $1.20, and one type B warrant, exercisable at $1.40, for every three shares they convert.

Titan's stock (OTCBB: TEWI) closed at $1.09 Wednesday, up $0.01 from Tuesday's close at $1.08.

The offering closes on Dec. 31.

In addition, the company announced Tuesday it has named John Michael Tastad as chief executive officer.

"John has been successfully building energy companies and creating national and international business relationships for the last two decades," Thomas Black, the company president, said in a press release.

"We are extremely fortunate to have John join and lead Titan's team as we head into a new era of growth and development. His experience and commitment to our industry are bound to have an immediate impact on our success."

Based in Cardiff, Calif., Titan Energy, formerly known as Safe Travel Care, Inc., is a manufacturer, distributor and service provider for generators, emergency power equipment and specialized mobile utility systems.

Western Wind to raise C$2.8 million

Western Wind Energy Corp. announced it has negotiated a non-brokered C$2.8 million private placement of units.

The company will sell 2 million units of one common share and one half-share warrant at C$1.40 per unit. Each whole warrant will be exercisable at C$1.75 for two years.

The company's stock (TSX Venture: WND) closed at C$1.70, down C$0.04 from Wednesday's close at C$1.74.

Loewen, Ondaatje, and McCutcheon Ltd. and Ascenta Finance Corp. are the financial advisers for this deal.

Proceeds will be used for development.

Based in Coquitlam, B.C., Western Wind operates wind-energy electrical generation facilities.

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