Nova wraps $55 million in convertible notes; Acta raises £5.75 million from stock private placements

By LLuvia Mares

New York, Sept. 28 - The PIPEs sector kept busy Friday after several deals graced the market during the day. Market sources said a slowdown in the sector isn't expected, if issuance stays at a steady pace.

In the day's biggest announcement, Nova Biosource Fuels, Inc. closed a $55 million private placement of 10% convertible senior secured notes due 2012.

"This private placement is a key part of our financing structure," said Kenneth T. Hern, company chairman and chief executive officer, in a press release. "These funds will be used to complete the already announced acquisition of the Clinton County BioEnergy refinery and to fund the company's growth strategies including the construction of a new biodiesel refinery."

The notes are convertible at $3.66 per share.

Nova's stock (Amex: NBF) closed at $2.81 on Friday, up $0.11 from $2.70 at the close on Thursday.

If after the second year, the closing sale price of the company's stock exceeds $6.00 per share for 20 days in any 30 consecutive day period, the company may redeem the notes at par.

In addition, after Sept. 20, 2010 but before Sept. 30, 2011 if conditions are satisfied, the company can redeem the notes at a price of 105. After Sept. 30, 2011 the notes are callable at 102.5.

Jefferies & Co., Inc. was placement agent.

Proceeds will be used to complete an acquisition, repay indebtedness, for capital expenditures and other general corporate purposes.

Nova Biosource is a Houston energy company that refines and markets standard biodiesel and related co-products.

Acta sells £5.75 million

In other news, Acta SpA announced it has secured £5.75 million from two private placements of shares.

The company will sell a total of 4 million ordinary shares at 115p apiece to Sumitomo Corp. in two equal tranches of £2.3 million each. The first tranche of 2 million shares has already closed, and the second tranche will be completed within six months.

Acta also said it has sold 1 million shares at the same price to institutional investors, for a total of £1.15 million.

Its stock (London: ACTA) closed at 88p on Friday, a decrease of 0.50p from Thursday's close of 88.50p.

"We are delighted to complete this first stage of our financing and to welcome Sumitomo as investors in Acta. Sumitomo has a unique position from which to judge the commercial potential of Acta's patented technology, and their investment is therefore particularly significant," said Paolo Bert, company chief executives aid in a press release.

"The funds raised, including Sumitomo's second stage investment are expected to fund our activities into 2010."

Based in Pisa, Italy, Acta researches and develops platinum-free catalysts for the fuel cell industry and for renewable energy applications.

Napo to raise £2 million

Napo Pharmaceuticals, Inc. announced it will take in £2 million in a private placement of shares.

The company will sell 2,844,584 new common shares at 70p apiece.

"Napo is pleased to have completed this equity fund-raise, the first in expected resource-generating efforts to allow the company to execute on an optimized product development program to bring CRO-HIV to market, as well as provide diversification of our clinical pipeline.," said Lisa A. Conte, company chief executive officer, in a press release.

Napo's stock (London: NAPL) closed at 76p Friday, up 3p from Thursday's close of 72p.

Proceeds will be used to finance costs of the US CRO-HIV Phase 3 Two Stage Adaptive Design clinical trial.

Based in South San Francisco, Calif., Napo focuses on the development and commercialization of proprietary pharmaceuticals.

Centrus upsizes offering

Centrus Ventures Inc. announced it plans to increase two concurrent private placement offerings.

The company amended the terms of a U.S. private placement offering, which was approved in early June, raising the size to 7.5 million in units from 5 million shares. Each unit consists of one share and one-half share purchase warrant.

With each warrant the investors can purchase an additional share of common stock at $1.25 each for two years from closing.

The company also amended the terms of a foreign private placement offering, also announced in early June, also raising the size to 7.5 million in units from 5 million shares. Each unit consists of one share and one-half share purchase warrant at $1.25 each for two years from closing

No securities had been sold as of Thursday.

Centrus' stock (OTCBB: CTUV) closed Friday at $1.15, down $0.02 compared to Thursday's close of $1.17.

Blaine, Wash.-based Centrus is an exploration stage company engaged in the acquisition and exploration of mineral properties.

Galleon settles C$60 million stock

Galleon Energy Inc. raised C$60 million in a private placement of shares. The deal closed Friday.

The company sold 1,869,200 class A shares at C$16.05 each and 1,463,400 flow-through class A shares at C$20.50 each.

Its stock (Toronto: GO.A) closed Friday at $15.32, down $0.6 from Thursday's $15.38 close.

The deal was completed by an underwriting syndicate led by GMP Securities L.P., and including Cormark Securities Inc., FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and Maison Placements Canada Inc.

Galleon is an oil and gas company based in Calgary, Alta.

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