Galleon Energy announces bought deal; Hana Biosciences eyes units; Westgold wraps tranche

By Stephanie N. Rotondo

Portland, Ore., Oct. 8 - Thursday's private placement market saw a fair mix of pharmaceutical and resource companies coming to market.

Galleon Energy Inc. announced a C$17.16 million bought deal financing. The company will sell common shares to raise the funds, which will be used for exploration work.

Meanwhile, Hana Biosciences said it would issue units in a private placement. The company is looking to pocket $12.4 million from the sale. Proceeds will be used to advance the company's clinical trials.

In completed financings, Westgold Resources Ltd. settled the first tranche of an A$22 million private placement of equity. The company raised more than A$10 million in the first portion.

Repros Therapeutics Inc. will also sell stock in an effort to raise $4.4 million.

Also, Eacom Timber Corp. is planning a C$3 million private placement of units. The funds will be used to exercise the company's option to purchase a currently idled sawmill.

Galleon announces bought deal

Galleon Energy brought a C$17.16 million bought-deal private placement to market Thursday.

The company will sell 2.2 million class A flow-through shares at C$7.80 per share.

Proceeds will be used for exploration.

"Galleon plans to expand the horizontal drilling program and acquire additional seismic data in the successful Doig light oil resource project," the company said in a press release. "Galleon also plans to expand the drilling program in the Montney resource project."

Settlement is expected on Nov. 2.

Calls seeking comment went unreturned Thursday.

Galleon's shares (Toronto: GO) gained 18 cents, or 2.89%, to C$6.40 on Thursday. Market capitalization is C$529.67 million.

Galleon energy is a Calgary, Alta.-based mid-sized oil and natural gas explorer and producer.

Hana selling units

Hana Biosciences will sell $12.4 million of common stock and warrants in a private placement, the company announced.

The South San Francisco, Calif.-based biopharmaceutical company will issue about 41.7 million units. The units will consist of one common share and a seven-year warrant to purchase 1/10th of the shares held by the investor. Each unit will sell at $0.30.

Investors also have the option to substitute a seven-year warrant for the common share. In such cases, the price per unit will be $0.29.

Additionally, Hana issued 12.9 units to an affiliate of Deerfield Management, satisfying its requirement to pay the investor $3.9 million to redeem certain warrants.

"We are pleased with the support Hana has received from the highly respected institutional investors who participated in this financing, as it reflects their belief in Marqibo, the benefit this product may have for patients suffering from ALL, and Hana's ability to execute as planned," said Steven R. Deitcher, president and chief executive officer, in a press release.

Proceeds will be used to complete Hana's phase 2 clinical trial of its Marqibo drug, which is being tested as a treatment for adult patients with Philadelphia chromosome negative acute lymphoblastic leukemia (ALL) and lymphoblastic lymphoma in second relapse or who failed two prior lines of treatment.

Settlement is expected by Oct. 9.

Hana's stock (OTCBB: HNAB) declined 13 cents, or 20.31%, to $0.51. Market capitalization is $16.29 million.

Westgold wraps first tranche

Westgold Resources wrapped an A$10.2 million tranche of its A$22 million private placement of equity.

The company will sell a total of 55 million ordinary shares in the oversubscribed deal at A$0.40 per share. In this portion, approximately 25.6 million shares were sold. Once shareholder approval has been secured, the company will sell the remaining 29.4 million shares for proceeds of A$11.8 million.

Metals X Ltd., a major shareholder of Westgold, will participate in the placement to maintain its 29.6% equity interest in the company.

"The funds raised from the placement will primarily be focused on further exploration work being conducted at the Rover Project to advance the resource potential, allow for additional drilling to be directed at a number of other promising targets that are considered likely to contain similar deposits to that identified at Rover 1, fully fund the 2010 exploration program and provide additional working capital," the company said in a press release.

Westgold's stock (Australia: WGR) closed at A$0.485.

Westgold Resources is a Perth, Australia-based gold and base metals exploration company.

Repros to issue equity

Repros Therapeutics, a biopharmaceutical company based in the Woodlands, Texas, said it would take in up to $4.4 million from a private placement of common stock.

The company will issue 3.5 million shares at $1.27 per share.

Repros did not specify what proceeds would be used for in a press release announcing the financing, and calls seeking comment went unreturned Thursday.

Settlement is expected by Friday.

Repros' shares (Nasdaq: RPRX) fell 51 cents, or 27.42%, to $1.35. Market capitalization is $21.55 million.

Eacom seeks C$3 million

Eacom Timber will conduct a C$3 million non-brokered private placement of units, according to a press release.

The company will sell 10 million of the units, with each unit containing one common share and one three-year warrant. The units will be issued at C$0.30 each, and the warrants are exercisable at C$0.60.

"Completion of this offering will put Eacom in a position to exercise its option to purchase the Big River sawmill in Saskatchewan and to initiate operations," commented Rick Doman, president and CEO, in the release. The company entered into the option agreement with Domtar Corp. on June 1. Eacom purchased the option for C$140,000, which will be applied to the total purchase price.

The sawmill has been idle since 2006.

Eacom's equity (TSX Venture: ETR-H) ended unchanged at C$0.50.

Eacom Timber is a Richmond, B.C.-based wood products company.

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