Activity seen set to increase; Dynasty brings upsized C$9.9 million; Transmeta plans $12.8 million direct placement

By LLuvia Mares

New York, Sept. 21 - A number of PIPE deals can be expected in the upcoming week if the stock market continues to strengthen, according to market observers.

"I think the appetite is there for the right kind of deals and for the companies who are in the right position to issue stock," said an investor relations advisor.

"I think that in some cases some of those stocks have come off with the market meltdown a couple of weeks ago," he said. "And for that reason they [investors] may want to see the valuation come back a little bit more before they go out into the market again, you know just for dilution."

Dynasty Metals & Mining Inc.'s announcement of a C$9.9 million private placement of shares Friday attested to one market source's belief that the mining sector is on the rise.

"I think that the confidence in the market and in the mining sector is basically strengthening and the fundamentals of understanding where the markets are heading right now is becoming a little clearer as time goes by," he said. "So I think that the uncertainty is not quite as great as maybe it was two weeks ago in this sector."

The company's deal originally was to be for C$8.25 million, but was upsized by $1.65 million on the same day it priced.

Dynasty will sell 1.2 million shares at C$8.25 apiece, up from the 1 million shares it initially intended to issue.

Cormark Securities Inc. is the underwriter.

Closing is expected to occur by Oct. 11.

Proceeds will be used for exploration and development of Dynasty's Ecuador properties as well as for general corporate purposes.

Dynasty is a mining company based in Vancouver, B.C.

"Gold prices are up and that's always good for the mining sector as well," said the market source.

Gold has risen 16% this year and is headed for the seventh straight annual gain, according to Bloomberg.com.

Transmeta offers $12.8 million direct placement

In the technology sector, Transmeta Corp. announced Friday it is offering $12.8 million of units in a direct placement to a group of institutional investors.

The company will sell up to two million units consisting of one share at $6.40 each and half a warrant with an exercise price of $9.00 each. The deal is expected to close on Sept. 26.

A.G. Edwards & Sons, Inc. is placement agent.

Transmeta will use the proceeds to meet its working capital requirements and fund its operations.

Santa Clara, Calif.-based Transmeta develops computing, microprocessor, semiconductor technologies and related intellectual property.

Proventure settles C$4.07 million units

Proventure Income Fund announced that it has raised C$4,074,997.50 in its previously announced non-brokered private placement of units.

The company (TSX Venture: PVT-UN) sold 2,328,570 trust units at C$1.75 per unit. Each unit came with a warrant which is exercisable for another trust unit at C$2.25 for two years.

Approximately 97% of the private placement was purchased by insiders.

Proceeds will be used for the acquisition of lands and buildings in Edmonton, Alta., to fund further capital expenditures and business acquisitions and for general corporate purposes.

The units and warrants have a four-month hold period.

Proventure Income Fund is a Calgary, Alta., open-ended mutual fund trust.

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