Pharming lifts SEDA; China Ritar arranges direct placement; IA Global secures equity facility

By Stephanie N. Rotondo

Portland, Ore., Oct. 5 - The private placement market was on the busy side Monday, though there was no clear dominating sector.

Pharming Group NV announced it had increased the size of a standby equity distribution agreement with Yorkville Advisors Global Master SPV Ltd. The facility was increased to €30 million from €20 million and more than €23 million remains available, the company said.

Meanwhile, China Ritar Power Corp. brought a $12.9 million registered direct offering of stock to market. The funds will be used in part to increase production.

IA Global Inc. announced it had secured a $5 million equity facility. The company is required to draw down at least $1 million under the facility.

Elsewhere, CanAlaska Uranium Ltd. said it would pocket C$2.5 million from a private placement of units. According to a company spokesperson, more than half of the funds have already been subscribed for.

Among the day's completed financings, Reliable Energy Ltd. said it wrapped a $5.20 million placement, while Genco Resources Ltd. took in C$2.5 million.

Pharming ups SEDA

Pharming Group, a Netherlands-based biotechnology company, said it upsized a standby equity distribution agreement with Yorkville Advisors Global Master SPV Ltd. to €30 million from €20 million.

The deal originally priced April 15.

Under the terms of the deal, Yorkville has committed to purchasing up to €400,000 of stock in regular tranches. The price per share equals a 5% discount to market price.

Pharming said that more than €23 million is still available under the facility.

"We are very pleased with this €10 million extension of the SEDA with YA Global," said Sijmen de Vries, chief executive officer of Pharming, in a news release. "It gives us the opportunity to raise additional cash when needed while minimalizing dilution. In addition to the debt reduction commitments announced last week, the SEDA extension allows us to strengthen our financial position and has shown over the previous months to be a significant financial instrument to reduce our net cash burn."

Pharming's equity (Pink Sheets: PHGUF) closed unchanged at $0.97.

China Ritar arranges direct placement

China Ritar Power will sell $12.9 million of common shares in a registered direct offering, the company announced.

The Nanshan, China-based lead-acid battery maker will issue 2.15 million shares at $6.00 per share.

About half of the financing will be used to purchase and install equipment at the company's new Hengyang industrial park. China Ritar also plans to add 10 new production lines in 2010, bringing the total to 29 lines.

"We would like to express our appreciation to our investors for their support and confidence in China Ritar," said Jiada Hu, chairman and CEO, in a press release. "With this additional financing we are in the position to expand our production capacity for lead acid batteries which should help strengthen our position as a high technology battery manufacturer in China and enhance our ability to grow both our revenues and net income."

China Ritar's shares (Nasdaq: CRTP) dropped 38 cents, or 6.25%, to $5.70. Market capitalization is $110 million.

IA Global inks equity deal

IA Global, a Burlingame, Calif.-based company, secured a $5 million two-year committed equity facility from Ascendiant Capital Group LLC.

The company will sell common stock to Ascendiant over the course of two years. IA Global has the right to determine the price per share and timing of the sales.

However, the facility will not go into effect until IA Global has filed a registration statement with the Securities and Exchange Commission. Once effective, IA Global is required to sell at least $1 million of stock over the agreed time period.

"This equity financing instrument will provide needed working capital to fuel our operations while providing the flexibility to manage growth opportunities as needed," said Brian Hoekstra, CEO, in a press release. "Further, we are pleased with Ascendiant and the terms of this financing commitment are favorable considering the current challenging capital environment."

IA's stock (Amex: IAO) declined $0.0015, or 3.00%, to $0.0485. Market capitalization is $11.1 million.

IA Global is a business process outsourcing and financial services corporation targeting the business-to-business and business-to-consumer markets in the Asia region.

CanAlaska to raise project funds

CanAlaska Uranium will conduct a C$2.5 million private placement of units, according to a press release.

The company will sell both flow-through units and ordinary common share units in the non-brokered placement. Each flow-through unit - consisting of one flow-through share and one half-share warrant - will sell at C$0.21. Whole warrants are exercisable at C$0.28 for 18 months.

The ordinary units will contain one common share and one half-share warrant. The units will sell at C$0.19 each and whole warrants are exercisable at C$0.28 for 18 months.

Emil Fung, director and vice president of corporate development, said that the company was pleased with the deal, as the price per unit was at a "slight premium" to the current market price.

"Obviously everybody has backed off from really risky plays," Fung said in an interview with Prospect news. In the last 18 months, the uranium sector - like the rest of the economy - has experienced a downturn.

But during that time, he said, CanAlaska has continued to "keep on trucking," and funding from strategic partnerships allowed the company to continue its exploration projects.

"I think there is an understanding of where we are in terms of the uranium space," he said.

Fung noted that about C$1.7 million of the units had already been subscribed for, but he was not sure when the deal would close.

Proceeds will be used for uranium exploration in Canada, as well as for general corporate purposes.

CanAlaska's shares (TSX Venture: CVV) slipped C$0.005, or 2.70%, to C$0.18. Market capitalization is C$25.5 million.

CanAlaska Uranium is a Vancouver, B.C.-based uranium exploration company.

Reliable settles stock placement

Among settled transactions, Reliable Energy said it took in C$5.2 million from a private placement of common shares.

The company sold the shares at C$0.15 each.

Reliable sold approximately C$4.83 million of the shares to a single investor, Crescent Point Energy. The company also said that it had entered into a joint venture agreement with the investor on a project in the southeast Saskatchewan and southwest Manitoba regions.

Under the joint venture, Reliable will take a 75% working interest in the project. Crescent Point paid Reliable C$.1.6 million for its 25% stake.

John Newman, Reliable's chief financial officer, said that Crescent Point was considered to be "the best known Bakkan oil play company in Canada."

Newman added that he was "absolutely" pleased with the terms of the deal and that funds would be used for exploration of its Bakkan assets.

Reliable's shares (Toronto: REL) dipped 3 cents, or 10.34%, to C$0.26. Market capitalization is C$36.2 million.

Reliable Energy is a Calgary, Alta.-based capital pool company.

Genco wraps unit sale

Genco Resources also completed a private placement, raising C$2.5 million.

The company issued approximately 7.14 million units in the oversubscribed deal. Each unit consisted of one common share and one warrant and was sold at C$0.35 per unit. The warrants are exercisable at C$0.45 until Sept. 30, 2011.

"The placement closed very quickly and, despite the short period of time in which it was open, was over-subscribed," stated Robert C. Gardner, Genco's acting CEO, in a press release. "This is indeed a strong affirmation by the investors of Genco's strategic plan."

Jada Soomer, manager of corporate communications, told Prospect News that the participating investors were mainly European.

"It was quite popular," she said. "It was amazing how fast it closed."

Soomer added that proceeds would be used for general operating purposes.

Genco's stock (TSX Venture: GGC) gained 6 cents, or 15%, to C40.46. Market capitalization is C$29.9 million.

Genco Resource is a Vancouver, B.C.-based silver and gold mining company.

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