Hudson boosts coffers to chase opportunities; RXi, Canadian Gold Hunter, Continuum plan offerings

By Kenneth Lim

Boston, June 24 - Hudson Holding Corp. has added $4 million to its capital reserves as the company prepares to take advantage of opportunities in the market.

RXi Pharmaceuticals Corp. said it is selling $8.72 million worth of stock in a private placement, while Canadian Gold Hunter Corp. plans to raise C$8 million.

Continuum Resources Ltd. announced a C$3.5 million non-brokered sale of stock and warrant units.

Hudson eyes opportunities

Hudson Holding said it sold $4 million worth of stock to an accredited investor on June 20 through a private placement.

The company sold 8 million common shares at $0.50 apiece. Hudson common stock (OTCBB: HDHL) closed unchanged at $0.45 on Tuesday.

The investor also received warrants for 4 million common shares, exercisable at $0.75 for five years.

Jersey City, N.J.-based Hudson, the parent company of broker-dealer Hudson Securities, Inc. and securities technology company Hudson Technologies Inc., said it will use the proceeds to strengthen its balance sheet and facilitate additional recruitment.

As a result of the financing, Hudson's stockholder's equity now exceeds $15 million, the company said.

"We're excited about this validation of our business model," Hudson chairman and chief executive Marty Cunningham said in a statement. "Building a formidable reserve of working capital will permit Hudson to pursue a variety of strategic opportunities, including the acquisition of complementary businesses and the recruitment of additional proven producers."

Cunningham told Prospect News that the current turmoil in the financial markets has created opportunities that Hudson hopes to capture.

"It would be unusual to suggest that we don't have someone come to talk to us everyday [looking for work or pitching a strategic opportunity]," Cunningham said.

Hudson has not said if the company has any firm plans on acquisitions or hiring, but Cunningham said the company's goal is to significantly increase its market capitalization in the next six to 12 months.

"We are open to any deal that makes sense for us," he said.

Hudson finds itself in a strong position now because it is managing to weather the market's concerns, Cunningham said.

"We've been blessed not to have any exposure to subprime or any of this mess," he said.

"It's also helpful to be small and flexible," Cunningham said. "At the moment we're still a lot like a family-type organization with everyone pitching in, everyone making an attempt to manage the expenses in their own units. We all come from a history of small firms...and we've been through a lot of ups and downs. We've become very good at that, and we've also morphed that into how to grow our business."

The latest investment is validation for the company's success and prospects, Cunningham said.

"If you look carefully, the shares were sold at a premium, and in today's market it's nothing short of astonishing," he said. "It shows extraordinary faith in us."

The pricing of the deal used the previous placement by Hudson, at about $0.60, as a rough guideline, Cunningham said.

"This a great accomplishment for us," he added. "It's not always that we sit and pat ourselves on the back, but to get these kinds of prices in a market like this, we think it's nothing short of astonishing. And we're intent on delivering and executing to our investors."

RXi to sell stock

RXi Pharmaceuticals said it plans to sell $8.72 million worth of stock in a private placement.

The company is offering about 1.07 million common shares at $8.12 per share. RXi common stock (Nasdaq: RXII) closed at $8.55 on Tuesday, lower by 5.42% or $0.49.

Jefferies & Co. is the lead agent.

RXi, a Worcester, Mass.-based early-stage biopharmaceutical company, said it will use the proceeds for working capital and other general corporate purposes, including building its pipeline of products for potential collaborations.

RXi Pharmaceuticals is a Worcester, Mass., discovery-stage biopharmaceutical company.

Canadian Gold Hunter eyes C$8 million

Canadian Gold Hunter plans to offer C$8 million worth of common and flow-through stock through a private placement.

The company will sell C$7 million worth of common shares at C$2 apiece. The flow-through financing will involve an additional C$1 million, or 435,000 flow-through shares at C$2.30 per share.

Canadian Gold Hunter common stock (TSX: CGH) rose 6.42% or C$0.12 to close at C$1.99 on Tuesday.

Vancouver, B.C.-based Canadian Gold Hunter, a mining company, said it will use the proceeds for exploration.

Continuum to raise C$3.5 million

Continuum Resources said it is selling C$3.5 million worth of stock and warrant units.

The deal will involve 70 million units at C$0.05 apiece. Each unit comprises one common share and one warrant, which is exercisable for two years at C$0.10.

Proceeds will be used for exploration work on Continuum's La Predilecta prospect, to meet its obligations under a joint venture and for working capital.

Vancouver, B.C.-based Continuum is a mineral exploration company.

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