Tri-Valley wraps stock deal; Cyclacel brings direct offering; xG Technology plans equity sale

By Stephanie N. Rotondo

Portland, Ore., Jan. 11 - The PIPEs market got off to a slow start Monday, though some new deals - particularly registered direct offerings - were seen entering the marketplace.

Of the day's settled financings, Tri-Valley Corp. said it raised over $7 million from a private placement of equity.

In new deals, Cyclacel Pharmaceuticals Inc. brought a $7.2 million registered direct offering of units. The deal also includes a greenshoe.

xG Technology Inc. also announced a private financing. The company intends to raise over $6.5 million via a private placement of equity.

Also, Hydrogenics Corp. said it was seeking $5 million from a registered offering of stock and warrants. The company hopes to use the funds to grow the business.

Tri-Valley wraps stock deal

Bakersfield, Calif.-based Tri-Valley said it completed a private placement of stock in a regulatory filing.

The deal settled Jan. 5 for proceeds of $7.17 million.

The oil and natural gas exploration company sold a total of 5.15 million restricted common shares.

Calls seeking comment went unreturned Monday.

Tri-Valley's shares (Amex: TIV) fell 6 cents, or 2.68%, to $2.18. Market capitalization is $70.6 million.

Cyclacel brings direct offering

Cyclacel Pharmaceuticals announced a $7.2 million registered direct offering of equity units.

The deal also includes a $2.3 million greenshoe.

The company intends to issue 2.85 million units at $2.51 each. The units will consist of one common share and one quarter-share warrant. Whole warrants are exercisable at $3.26 for five years.

"The proceeds of the financing together with our current cash, cash equivalents and marketable securities should provide the financial resources to continue clinical development of sapacitabine and seliciclib, the company's lead drugs," said Spiro Rombotis, president and chief executive officer, in a pres release.

"We will be submitting a special protocol assessment request for a pivotal study of sapacitabine in patients with hematological malignancies during the first quarter of 2010."

Settlement is expected by Jan. 13.

Cyclacel's stock (Nasdaq: CYCC) dropped 45 cents, or 15.20%, to $2.51. Market capitalization is $59.2 million.

Cyclacel Pharmaceuticals is a Berkley Heights, N.J.-based developer of treatments for cancer and other disorders.

xG plans equity sale

xG Technology, a Sarasota, Fla.-based wireless technology developer, will take in $6.62 million from a private placement of common shares, according to a press release.

The company has already raised $5.12 million. Treco International Ltd. is the investor.

In total, the company will sell approximately 19.47 million common shares at $0.334 per share.

xG's equity (London: XGT) closed at 0.35p. Market capitalization is £33.2 million.

Hydrogenics seeks growth funds

Hydrogenics is planning a $5 million registered direct offering of stock and warrants, the company announced.

The company will issue 12.5 million common shares at $0.40 per share. Investors will also receive warrants.

Approximately 5.98 million of the warrants are exercisable until Jan. 14, 2015 at $0.52 per share. Another 6.51 million warrants will be issued, which are exercisable at $0.52 for five years.

"As Hydrogenics prepares for what we anticipate will be an active 2010, we felt it prudent to bolster the company's financial position as we implement our growth plans to capture a number of compelling market opportunities this year," said Daryl Wilson, president and CEO, in a press release.

"We are grateful to the institutional investors for their support and interest in our business and in the expanding hydrogen economy unfolding around the globe."

Settlement is expected by Jan. 14.

Hydrogenics' stock (Nasdaq: HYGS) slipped 7 cents, or 15.57%, to $0.4002. Market capitalization is $37.08 million.

Hydrogenics is a Mississauga, Ont.-based developer and manufacturer of hydrogen generation and fuel cell products,

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