Redzone plans unit sale; Hemispherx to take in $18.3 million; Petrel wraps £1.84 million deal

By Stephanie N. Rotondo

Portland, Ore., May 11 - Most deals in the private placement market Monday were on the smaller side, though there were a few good-size deals as well.

Redzone Resources Ltd. announced a plan to raise up to C$4 million through a sale of units. A company spokesman told Prospect News that the company tends to favor the private market when looking to raise funds.

Meanwhile, Hemispherx Biopharma Inc. is aiming to raise $18.3 million via a registered direct offering of shares. Proceeds will be used to further commercialize its drug lines.

Among completed deals, Petrel Resources plc wrapped a £1.84 million private placement of shares. The company said the funds would go toward furthering oil projects in the Iraqi oil fields.

Also, Kamada said it completed yet another deal, this time taking in $1.5 million. That is in addition to the $7 million the company took in last week.

Call Genie Inc. said it would issue convertible debt in its effort to raise C$1.5 million. The company also has an option to increase the offering by an additional C$2 million.

Redzone plans unit sale

Redzone Resources, a Vancouver, B.C.-based mineral exploration company, plans to raise up to C$4 million via a non-brokered placement of units.

The units will contain one common share and one half-share warrant. The company will issue 5 million to 10 million of the units at C$0.40 to raise between C$2 million and C$4 million.

Each whole warrant is exercisable at C$0.75 for one year.

"It's generally the way we raise money," Neil Halldorson, president of Redzone, told Prospect News regarding the choice to raise the funds in the private market versus another type of financing. "It's probably one of the easiest and fastest ways for us to do this."

Halldorson added that Redzone - and companies similar in size and scope to Redzone - "very seldom" do a financing that requires a prospectus.

"These days, there are so many accredited investors," he said. "This last year, nobody's done a prospectus, I don't think. It's been a really slow year."

But as the market is showing "glimmers of light," Redzone saw an opportunity to increase liquidity, which would allow it to "chase down [acquisition] deals."

"It seems like a good time to put some money in the treasury so we can do some of those deals," Halldorson commented.

The company is "seeking to acquire advanced exploration stage gold assets," according to a press release.

Halldorson noted that there was no expected date of settlement at this time.

Redzone's equity (Canada: REZ) gained 5 cents to close at C$0.45.

Hemispherx to take in $18.3 million

Hemispherx Biopharma will take in $18.3 million through a registered direct offering of stock and warrants, the company said.

The Philadelphia-based company will issue common stock at $1.10 per share. The two institutional investors participating in the offering will also receive series I warrants good for approximately 6.14 million additional shares at a strike price of $1.65 for five years. Series II warrants equal to 3 million additional shares were also issued, with an exercise price of $1.10 for 45 days.

The company expects to close on $15 million of the deal on Monday. The rest of the deal is expected to settle by May 16.

Hemispherx plans to use proceeds in part to "fund commercialization of Alferon N and for other research and development and general corporate purposes," according to a press release. Alferon N is an FDA-approved treatment "for a category of sexually transmitted diseases."

The company's shares (Amex: HEB) fell 30 cents, or 21.74%, to $1.08. Market capitalization is $91.4 million.

Hemispherx Biopharma develops drugs to treat debilitating disorders, like viral diseases and immune-system disorders.

Petrel wraps stock placement

Petrel Resources announced it settled a £1.84 million private placement of shares.

The company sold 4.09 million ordinary shares at 45p per share.

"The funds will be used as working capital to advance Petrel's projects in Iraqi oil exploration and development, and fully covers Petrel's existing and normally anticipated working capital requirements until the end of 2010," the company said in a statement.

"The first 10 years working in Iraq were the hardest, circumstances steadily improve," commented David Horgan, Petrel's managing director, in the statement. "As access and returns shrink elsewhere, Iraqi oil has never been more attractive. Put simply, Iraq offers the perfect package of the lowest exploration costs combined with the lowest production costs anywhere in the world. Iraqi structures are large, oil quality is excellent and exploration success are the best worldwide for massive structures of this type."

"The world needs Iraqi oil development urgently: Global oil demand remains resilient," Horgan continued. "Almost no net oil capacity has been added outside OPEC since 2004. Many exporting countries are in decline. OPEC capacity additions have been slow to appear. There has never been a better time to add major new low-cost capacity."

Furthermore, "No western company has more on-the-ground experience," he added. "Whilst we are entirely aware of the challenges that have been and remain inherent with Iraqi operations, we have never had material security; political or geopolitical concerns. We remain committed to working with the sovereign government of Iraq in Baghdad. This placing, undertaken at the initiative of a longstanding institutional shareholder, shows that Petrel's long-term commitment to working with the Iraqi authorities, to international professional standards, finds city support."

Petrel's stock (London: PET) closed at 46p. Market capitalization is £38.1 million.

Petrel Resources is a Dublin, Ireland-based oil exploration company.

Kamada settles $1.5 million deal

Israeli-based biopharmaceutical company Kamada said it completed a $1.5 million private placement of stock with Meitav.

The financing is in addition to a $7 million stock placement reported last week. The shares were sold to Ralf Hahn, Kamada's board chairman, and UDT Med Holdings LLC.

"We are pleased to report this transaction, which further enhances our capital base, represents a significant vote of confidence by a highly regarded, knowledgeable investment fund in Kamada and the company's prospects," said David Tsur, chief executive officer, in a press release.

Call Genie to issue converts

Call Genie, a provider of voice-enabled mobile local search services, plans to raise C$1.5 million by issuing convertible debentures.

Under the terms of the deal, the company will issue 1,500 of the 10% converts due May 30, 2012 at C$1,000 per note. The company also has an option to sell an additional C$2 million.

The notes are convertible into common stock at a conversion price of C$0.50. Warrants will also be issued at 240 warrants per note, with an exercise rice of C$0.225 for two years.

"We are very pleased to have lined up a financing for the company," noted Michael Durance, CEO of Calgary-based Call Genie, in a press release. "Proceeds from the financing will be used, among other things, to support the growing number of customer projects for which the company is being engaged."

Call Genie's stock (Toronto: GNE) increased 3.5 cents, or 33.33%, to C$0.14. Market capitalization is C$11.6 million.

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