La Cortez Energy raises $6.33 million; International Ferro wraps sale; Amarin gets bridge loan

By Stephanie N. Rotondo

Portland, Ore., Aug. 3 - As the new month started, a few companies announced completed financings in Monday's marketplace.

First up, La Cortez Energy Inc. said it raised more than $6 million. The company sold units containing stock and warrants. International Ferro Metals Ltd. meanwhile sold equity in its quest to raise £22.16 million.

Elsewhere, Amarin Corp. plc said it would sell bridge loan notes to raise $3 million. The funds will help pay for operations through the end of September, when the company expects to close on another financing valued at $55 million.

Research Frontiers Inc. said it would sell stock in a nearly $3 million placement. The proceeds will fund the company's development of its SPD-Smart Glass products.

La Cortez takes in $6.33 million

Among the day's settled transactions, La Cortez Energy said it wrapped a $6.33 million private placement of equity units.

The company sold approximately 5.06 million units containing one common share and one warrant. Each unit sold at $1.25 and each warrant is exercisable at $2.00 for five years.

The deal had originally priced at $15 million. The company raised $6.08 million in the first tranche, which closed June 19.

"We are very pleased to announce the final closing of this private placement," said Andres Gutierrez, president and chief executive officer, in a news release. "We are very happy with the results of our ability to raise capital in these tumultuous times. It reflects a vote of confidence in the La Cortez executive team and the ability of our board of directors to successfully execute the company's strategic plan. We remain attentive to other opportunities in a variety of basins in Colombia and in Peru that we believe have opportunities to allow La Cortez to build our production base and benefit from upside exploration."

Proceeds from the fundraising will go toward development on La Cortez's interest in the Maranta block, as well as the Putumayo 4 block in Colombia.

La Cortez's stock (OTCBB: LCTZ) closed steady at $1.99.

La Cortez Energy is a San Diego-based early stage oil and gas exploration and production company.

IFL wraps stock sale

International Ferro Metals said it closed on a £22.16 million placement of ordinary shares.

The Sydney, Australia-based company sold approximately 50.36 million shares at 44p per share.

The company plans to use proceeds to fund its investment in the Clean Development Mechanism compliant electricity co-generation plant. The plant was created in January 2007, according to a press release, as a CDM project by the Kyoto Protocol.

"We are delighted to announce a share placing across a broad base of new and existing shareholders," stated David Kovarsky, CEO, in the release. "The success of the placing illustrates support for the company, the ferrochrome market and the proposed co-generation project. By investing in the co-generation facility, IFL will achieve a significant reduction in carbon dioxide emissions. The plant will produce c.11% of overall power requirements and allow for re-instatement of the 10% ferrochrome production capacity lost as a result of Eskom's restrictions, thus allowing us to take advantage of strong demand from the Chinese market."

Internationals Ferro's shares (London: IFL) closed at 56.5p. Market capitalization is £252 million.

Amarin gets bridge loan financing

Biopharmaceutical company Amarin is planning to raise $3 million via a private placement of 8% convertible bridge loan notes.

Under the terms of the notes maturing Sept. 30, principal and accrued interest are convertible into American Depositary Shares at the closing of the company's next financing. The price per share will be equal to the lower of 90% of the financing's price per share, or the average volume-weighted price of the ADSs for the 30 days prior to the closing of the next financing.

In addition, investors will receive five-year warrants. The warrants are convertible into common shares at a price equal to 50% of the conversion of the ADSs and are exercisable at a price equal to the price per share paid in the next financing.

"This bridge financing provides the company with sufficient funds to operate through Sept. 30, 2009, during which time the company will continue its ongoing discussions with potential investors in order to secure long-term equity financing," the company said in a press release. "The company recently announced that it has signed a non-binding term sheet for a private placement of American Depositary Shares (each representing one ordinary share) for up to $55 million in which the lead investors would purchase an aggregate of up to $30 million, with the balance of approximately $25 million reserved for other investors mutually acceptable to both the company and the lead investors."

In addition to the financing news, Amarin said it secured an amendment from lenders on its existing $2.5 million bridge loan. The amendment extends maturity until Sept. 30.

Amarin's equity (Nasdaq: AMRN) improved 2 cents, or 1.64%, to $1.24. Market capitalization is $37.4 million.

Amarin is based in Dublin and has research and development offices in Mystic, Conn.

Research Frontiers to issue equity

Research Frontiers will take in $2.85 million from a sale of stock, the company announced.

The company will issue 780,831common shares at $3.65 per share. Investors will also receive warrants good for an additional 156,161 shares.

The warrants are exercisable at $6.00 and expire July 31, 2014.

"Recent events have created exciting opportunities in the SPD-SmartGlass industry," noted Joseph M. Harary, president and CEO of Research Frontiers, in a statement. "Governments, businesses and people throughout the world are focusing more intensely on green building initiatives that save energy, encourage environmental stewardship and improve individual well-being. Several of our licensees have recently announced expansions of their facilities and production capacity for smart glass, launched products and increased their marketing visibility. Less than two weeks ago, Hitachi Chemical, a strategically important licensee of ours, launched a web site specifically devoted to their SPD light-control film business after their president had noted earlier that their SPD business had become an urgent sales growth project within Hitachi Chemical with the anticipation of its developing into one of Hitachi Chemical's new core businesses. Also exciting for our industry are the recently released independent data regarding energy efficiency and other sustainability benefits that SPD-Smart technology offers, and licensee news regarding targeted sales levels for SPD film."

Research Frontiers expects to use the sale proceeds to further develop and market its product.

The company's equity (Nasdaq: REFR) gained a nickel, or 1.3%, to $3.90. Market capitalization is $61.4 million.

Research Frontiers is a Woodbury, N.Y.-based developer of light-control coatings for glass and plastics.

Meanwhile, China Aoxing Pharmaceutical Co. Inc. is also planning to sell equity in its effort to raise $5 million.

The New York-based developer of analgesic drugs for the Chinese market will sell the shares at $0.95 per share.

China Aoxing's stock (OTCBB: CAXG) fell 8 cents, or 8.41%, to $1.40. Market capitalization is $116 million.

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