Medgenics plans convertibles sale; Dyadic pockets $3 million; Augusta to sell shares to HudBay

By Stephanie N. Rotondo

Portland, Ore., Aug. 24 - Medgenics Inc. announced a private placement of convertible debentures Tuesday.

The company plans to raise up to $3 million in the financing, which also includes warrant coverage.

Dyadic International Inc. meantime said it had raised $3 million via the placement of convertible promissory notes. The company said the financing instrument was less dilutive than other options.

Elsewhere, Augusta Resource Corp. said it had secured HudBay Minerals Inc. as an investor. The investor will purchase nearly C$30 million of units.

Also, Redstone plc is seeking £7.02 million from a placement of equity. The funds will be used, in part, to develop the company's business.

Medgenics plans convert sale

Vienna, Va.-based Medgenics will conduct a private placement of 4% convertible unsecured debentures for proceeds of up to $3 million.

The notes mature in one year and are convertible into ordinary shares at 13p, representing a 57.58% premium over the 8.25p closing share price on Aug. 23.

Once the company completes an underwritten public equity offering - and raises a minimum of $6 million - the debentures will automatically convert into shares.

The conversion price will be the lesser of 13p or 75% of the public offering price per share.

Additionally, investors will receive 75% warrant coverage. The warrants will be exercisable at 16p for five years. The strike price is a 93.94% premium over the Aug. 23 closings share price.

Proceeds will be used "to finance further advances with its phase I/II clinical trial for its product Epodure (for the treatment of anaemia) and to initiate steps towards the launch of a phase I/II trial for its product Infradure (for the treatment of hepatitis-C), according to a press release.

Medgenics' stock (London: MEDG) closed at 8.97p. Market capitalization is £12.72 million.

Dyadic pockets $3 million

Dyadic International took in $3 million from a private placement of 8% convertible subordinated secured promissory notes, the company said in a press release.

Two investors participated in the deal.

The notes come due Jan. 1, 2013 and are convertible into common shares at $1.82.

The initial conversion price represents 120% of the average closing price for the 30 days preceding the closing date of the transaction.

The notes bear interest on a quarterly basis.

Proceeds will be used for working capital, which could include continued research and development investments and new product introductions.

"This financing provides Dyadic with a timely source of capital on terms that are substantially less dilutive for Dyadic's stockholders than other capital raising alternatives," remarked Mark Emalfarb, president and chief executive officer, in the release.

"The proceeds of this offering strengthen Dyadic's balance sheet and improves our working capital which puts Dyadic in a better position to negotiate additional licensing arrangements and strategic collaborations on the best possible terms for the benefit of Dyadic and its stockholders."

Dyadic's equity (Pink Sheets; DYAI) gained 3 cents, or 2.40%, to $1.28. Market capitalization is $39.69 million.

Dyadic International is a Jupiter, Fla.-based biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of products and solutions for the bioenergy, industrial enzyme and biopharmaceutical industries.

Augusta to sell shares to HudBay

Augusta Resources, a Vancouver, B.C.-based mineral exploration company, arranged a C$29.99 million private placement of units, according to a press release.

HudBay Minerals Inc. is the investor. Upon closing, Hudbay will hold an 11% equity stake in the company.

Augusta will sell approximately 10.91 million of the units at C$2.75 each. The units will hold one common share and one half-share warrant.

Whole warrants are exercisable at C$3.90 for 18 months. The strike price reflects a 78.08% premium over the Aug. 23 closing share price of C$2.19.

"HudBay's investment in the company underscores the quality of our Rosemont copper project and allows us to continue to progress the development of Rosemont on plan and maintain Augusta's strategic flexibility," commented Gil Clausen, president and chief executive officer, in the release.

Augusta's shares (Toronto: AZC) improved by 21 cents, or 9.59%, to C$2.40. Market capitalization is C$293.15 million.

Redstone seeks development dollars

Redstone intends to raise £7.02 million via a private placement of ordinary stock, the company announced.

The London-based integrated and converged communications services provider will sell approximately 1.4 million shares at 0.50p each.

The price per share is a 73.4% discount to the 1.88p closing share price on Aug. 23.

Redstone will use the funds to strengthen its balance sheet, as well as to provide working capital and to fund business development.

"We have been delighted by the level of support shown by investors for Redstone, reinforcing the belief Tony and I have in this business and the investment we are making into its future," said Ian Smith, non-executive director of Redstone, in a press release.

"This fundraising and refinancing will significantly strengthen the company's balance sheet, giving us a solid foundation to implement our revised strategy. We are confident that we now have the platform in place to capitalize on opportunities in the UK ICT sector and deliver tangible value to shareholders."

Redstone's equity (London: RED) ended at 0.85p. Market capitalization is £2.71 million.

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