Cardiome sells $25 million; IGR wraps $1.3 million; Sheffield to get £14.29 million; Drury on tap

By Devika Patel

Knoxville, Tenn., July 23 - Cardiome Pharma Corp. said it hopes to raise $25 million in a non-brokered private placement of series A convertible preferreds, and International Gold Resources, Inc. announced it has completed a $1.3 million sale of stock and warrants, most of which was sold to an insider.

Meanwhile, the Brits dominated the remainder of the Wednesday PIPE deals, with Sheffield United plc announcing plans for a £14.29 million sale of its convertible loan notes and Drury Lane Capital plc arranging a £14.64 million stock sale, the proceeds of which it will use to acquire Adastra Software Ltd.

Cardiome plans $25 million

Cardiome said it has arranged a $25 million non-brokered private placement of series A convertible preferred shares.

The company will sell 2,272,727 preferreds at $11.00 apiece to CR Intrinsic Investments, LLC.

The preferreds will be convertible into common shares on a 1 to 1 basis. They will not pay dividends.

Proceeds will be used for general corporate purposes, costs associated with the ongoing strategic process and continued development of Cardiome's clinical programs.

The Vancouver, B.C.-based cardiovascular drug development company's shares (Nasdaq: CRME) dropped 1.96%, or $0.23, on Wednesday, to close at $11.50.

"We view this transaction as an important bridge which provides us with additional near-term financial flexibility and a strengthened balance sheet as we enter an important phase of our current strategic discussions," Cardiome president and chief business officer Doug Janzen said in a press release.

"We are pleased that our largest shareholder is willing to support Cardiome with a transaction which will assist us in maximizing the value of our vernakalant franchise following our recent positive oral data."

IGR raises $1.3 million

Denver-based International Gold Resources concluded a $1.3 million private placement of stock, in which it sold 3.25 million common shares at $0.40 per share. Investors also received one half-share warrant for each share they bought. The whole warrants are exercisable at $1.00 for one year.

The company's chairman, David H. Francisco, bought $500,000 of the shares.

Proceeds will be used to sustain operational needs while the company finalizes and files its amended application for its Cupixi mining license and awaits its approval from the Brazilian Department of Mines.

"We will use these funds to sustain operational needs while the company finalizes and files its amended application for its Cupixi mining license and awaits its approval from the Brazilian Department of Mines," the company's president and chief executive officer, Robert L. Dumont, said in a news release. "We are very pleased to have Dave (Francisco) participating in this financing and his continued support and enthusiasm for our ongoing efforts."

The early stage gold exploration company's shares (Pink Sheets: IGRU) soared 20%, or 6 cents, to close at $0.36 on Wednesday.

Sheffield wraps £14.29 million

Sheffield has arranged to sell £14.29 million of its convertible loan notes in multiples of £1.

Interest will accrue on the notes at the three months' sterling Libor plus 4% per annum.

The company may redeem the notes at any time for par plus accrued interest.

The notes will be automatically converted on Aug. 31, 2009 at 10p per share.

A portion of the proceeds will be used to roll over the £10.58 million existing loan and unpaid interest the company owes to SDG Caledonia Holdings Ltd., which is due on Aug. 31. The remainder will be used to obtain planning permission for the redevelopment of the Fraser's Property KOP stand at Bramall Lane, to underpin investment in the first team and for working capital.

"The directors have decided not to offer all shareholders the opportunity to subscribe for the convertible loan notes, given the relatively small amounts raised from shareholders (other than the directors) through previous open offers and in order to save the additional cost and delay associated with the production of a prospectus in connection with such an offer," the company said in a press release announcing the deal.

The soccer, property and leisure services business is based in Sheffield, England. Its shares (London: SUT) dropped 7.27% on Wednesday, or 0.72p, closing at 9.18p.

Drury to get £14.64 million

Drury Lane said it will take in £14.64 million in a private placement of shares.

The London-based company will sell 86,088,235 ordinary shares at 17p per share.

Proceeds will be used toward the company's bid to acquire Adastra Software Ltd., which Drury Lane announced alongside the placement.

Its shares (London: DRUR) jumped 7.58% on Wednesday, or 1.25p, to close at 17.75p.

Drury Lane seeks to invest in a United Kingdom, European or North American businesses. The company will focus on sectors, such as natural resources, energy and media services.

Commenting on the proposed acquisition and fundraising, the company's executive director, Mark Watts, said in a press release, "We believe Adastra is well-placed within the fragmented industry for health care software services and represents an excellent platform from which to execute a consolidation strategy in the sector."

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