Converted Organics, Rexahn plan offerings; AuEx hopes for new investors; TanzaniteOne wraps sale

By Stephanie N. Rotondo

Portland, Ore., May 20 - Registered direct offerings continued to be popular Wednesday, but other types of deals were also coming to market as well.

Converted Organics Inc. and Rexahn Pharmaceuticals Inc. announced direct offerings Wednesday. Converted said it would take in $2.1 million through its equity placement, while Rexahn was aiming for $3 million.

Among other deals, AuEx Ventures Inc. announced a C$11 million private placement of stock. A company spokesman told Prospect News that the company hoped to attract new investors through the transaction.

TanzaniteOne Ltd. said it settled a stock sale of £3.49 million, or $5.3 million. Proceeds will be used in part to acquire more tanzanite at depressed prices.

Also, Watermark Global plc said it would issue equity to raise £2 million. The company plans to use the funds for a feasibility study.

Converted, Rexahn plan offerings

Converted Organics announced a $2.1 million registered direct offering of equity.

The company plans to sell 1.5 million common shares at $1.40 per share. Investors will also receive one short-term warrant for each share purchased. The warrant is exercisable at $1.40 until Aug. 14, 2009.

Converted's stock (Nasdaq: COIN) fell 16 cents, or 9.7%, to $1.49. Market capitalization is $11.2 million.

Converted Organics is a Boston-based producer of fertilizer and soil products using recycled food waste.

Among other direct deals, Rexahn Pharmaceuticals said it would take in $3 million through its stock offering.

The Rockville, Md.-based biopharmaceutical company will issue approximately 2.86 million common shares at $1.05 per share to a single institutional investor. Warrants equal to an additional approximate 5.64 million shares are also included in the deal.

Warrants for approximately 2.2 million of the shares are exercisable at $2.05 for 90 days. Warrants for approximately 1.86 million shares are exercisable at $1.25 for three years. And, warrants for approximately 1.55 million shares are exercisable at $1.50 for five years.

Rexahn's shares (OTCBB: RXHN) finished the day unchanged at $4.50.

AuEx hopes for new investors

AuEx Ventures plans to raise C$11 million via a private placement of equity units, according to a press release.

The Vancouver, B.C.-based company will sell 5 million units containing one common share and one half-share warrant at C$2.20 per unit. Each whole two-year warrant is exercisable at C$2.75 for the first year and at C$3.30 for the second.

The warrants may expire sooner should AuEx's volume-weighted average trading price of its shares reach C$4.12 or higher for 20 consecutive trading days in the first year or C$4.95 or higher for 20 consecutive trading days in the second year. In that case, the warrants will expire 30 days after the company notifies holders.

Richard Bedell, executive vice president and co-founder of the precious metals exploration company, said that the deal was designed to attract new institutional investors.

"We have been very well held by institutions," Bedell told Prospect News. "This deal is big enough to kind of spread it out to multiple institutions."

"We have had outstanding shareholders and we have been very well supported," he added regarding the company's current investors.

Additionally, Bedell said that Haywood Securities Inc. - which along with Dundee Securities Inc. is acting as placement agent - has helped the company raise money nearly from its inception.

Bedell said that AuEx was formed six years ago, "through a series of private placements." The founders began discussing the idea of going public and then Haywood stepped in and, having heard good things about the fledgling company, said it wanted to help fulfill that dream. Since that time, Haywood has been involved in all of the company's financings, Bedell commented.

AuEx's equity (Toronto: XAU) slipped 12 cents, or 4.90%, to C$2.33. Market capitalization is C$70.6 million.

TanzaniteOne settles stock sale

Hamilton, Bermuda-based TanzaniteOne wrapped a £3.49 million, or $5.3 million, private placement of stock, the company said.

The tanzanite distributor sold approximately 23.27 million common shares at 15p per share.

TanzaniteOne plans to use up to $2 million of the funds to acquire more gem quality tanzanite "during this period of depressed prices," the company said in a statement. About $1 million will be used to further its tsavorite projects, while the rest will be used for general working capital.

"I am extremely pleased that TanzaniteOne has been able to raise this additional capital at a time of such turbulence in world markets," said Bernard Olivier, head of development, in the release. "This placing will enable us to follow our strategy; to concentrate on supporting the tanzanite prices by purchasing gem quality tanzanite via our trading operation in Arusha and fund further development work on our tanzanite assets as well as developing our tsavorite projects. We are encouraged by the recent signs of improvement in the tanzanite market particularly the sales and demand increases, which was evident in our recent upturn in total sales; $ 4.64 million tanzanite sales in the four months to 30 April 2009."

TanzaniteOne's shares (London: TNZ) closed at 18p. Market capitalization is £13 million.

Watermark to issue equity

Watermark Global negotiated a £2 million private placement of stock, according to a press release.

The company will sell 400 million ordinary shares at 0.5p per share. Peregrine Corporate Ltd. has already agreed to purchase up to £500,000 of the shares.

Proceeds from the financing will go toward funding the definitive feasibility study relating to iWatermark's plans to address the issue of acid mine drainage in the Western, Central and Eastern Witwatersrand Basins in South Africa, the company said in the release. The study is expected to conclude in the third quarter of 2009.

"The [study] is an important milestone in achieving the full commercialization of the project and we are delighted to have obtained the support we need from lenders and investors in this very difficult market," commented Peter marks, chairman of Watermark, in the statement.

Watermark's equity (London: WET) ended at 0.98p. Market capitalization is £2.68 million.

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