Canyon to finance up to C$50 million; Adventrx plans convertible preferreds; Petro sells units

By Stephanie N. Rotondo

Portland, Ore., Oct. 6 - Canyon Services Group Inc. brought a C$30 million private placement to market Tuesday, making it one of the day's largest financings.

The company will sell common shares to a single investor to raise the funds. In addition, the company has planned a bought deal offering for an additional C$20 million.

Meanwhile, Adventrx Pharmaceuticals Inc. said it would conduct an over $11 million registered direct offering of convertible preferred shares. A company spokesperson said he was pleased the company was able to get the funding, even in a difficult market.

Petro Vista Energy Corp. arranged a C$5 million non-brokered placement of units. Cantrell Capital Corp will purchase the units.

Elsewhere, Pluristem Therapeutics Inc. will take in $3 million via a registered direct offering of stock and warrants. RenGen Biologics Inc. also brought a deal, a $3 million private placement, which will be used as bridge financing.

Canyon plans C$50 million financings

Canyon Services Group will raise C$30 million from a private placement of shares, along with another C$20 million from a bought deal offering.

Under the terms of the private placement, Canyon Services will sell 15 million common shares at C$2.00 per share to ARC Energy Fund 6.

In the bought deal, a group of underwriters led by Cormack Securities will buy 10 million shares, also at C$2.00 per share.

Proceeds will be used for the company's capital program, as well as to temporarily reduce its bank debt.

Calls seeking comment went unreturned Tuesday.

Canyon Services' stock (Toronto: FRC) fell 19 cents, or 8.12%, to C$2.15. Market capitalization is C$47.2 million.

Canyon Services group is a Calgary, Alta.-based company providing oilfield services for fracturing and well stimulation.

Adventrx to sell preferreds

Adventrx Pharmaceuticals will sell $11.3 million of series D convertible preferred shares in a registered direct offering, the company announced.

The shares bear interest at 4.2566% through Oct. 9, 2020. The shares are also convertible into common shares at a conversion price of $0.18805.

Investors will also receive warrants equal to 19.8 million common shares. The warrants are exercisable at $0.1468 for five years.

Proceeds will be used to fund operations as the company awaits FDA approval on its ANX-530 NDA, as well as for the continued development of its ANX-514.

"I am pleased to have raised sufficient money to get us through a couple important milestones," Brian Culley, principal executive officer, told Prospect News. "It is still a very difficult market."

Culley said that investors had thus far reacted positively, as there was "not much fluctuations in the stock," and trading was rather heavy.

"The benefit of reducing financing risk and providing comfort" that the company can go forward with its strategy "offsets any perceived negative side from dilution," he added.

Settlement is expected by Oct. 9.

Adventrx's equity (Amex: ANX) declined less than 1 cent, or 0.48%, to $0.1461. Market capitalization is $18.25 million.

Adventrx Pharmaceuticals is a San Diego-based specialty pharmaceutical company whose product candidates are designed to improve the safety of existing cancer treatments.

Petro, Cantrell agree on funding

Petro Vista Energy will sell units to Cantrell Capital Corp. in a C$5 million non-brokered private placement.

The company will sell 25 million of the units at C$0.20 each. Each unit will contain one common share and one warrant, which is exercisable at C$0.30 for two years.

Upon completion of the deal, Petro will grant Cantrell the right to participate in future financings for as long as Cantrell owns a 10% interest in the company.

Cantrell has also agreed to farm into Petro's Morichito and Block 5 properties.

"This partnership with Cantrell provides Petro Vista the ability to acquire interest in producing properties with upside potential that we have already identified and high-graded," said Read Taylor, president and chief executive officer, in a press release.

"This will enable us to generate cash flow and build reserves. The farm outs of Morichito and Block 5 allow us to reduce our overall capital costs while maintaining significant exposure to the drilling opportunities and exploration success we believe both blocks hold."

Proceeds from the financing will be used for operation costs in Colombia and Brazil, as well as for future acquisitions.

Petro's shares (TSX Venture: PTV) gained 3 cents, or 14.29%, to C$0.24. Market capitalization is C$9.14 million.

Petro Vista Energy is a Vancouver, B.C.-based petroleum exploration company.

Pluristem to conduct direct offering

Pluristem Therapeutics, a Haifa, Israel-based developer of stem cell production technology, arranged a $3.03 million registered direct offering of common stock, according to a press release.

The company will issue approximately 2.70 million shares at $1.12 per share. Investors will also receive warrants good for an additional 1.08 million shares. Each warrant is exercisable at 41.60 for five years.

Settlement is expected by Oct. 12.

The company was unavailable for comment Tuesday.

Pluristem's stock (Nasdaq: PSTI) dipped 18 cents, or 13.64%, to $1.14. Market capitalization is $18.2 million.

RenGen to issue convertibles

RenGen Biologics arranged a $3 million private placement of convertible debentures, according to a press release.

The company will sell 8% secured convertible notes due April 2, 2010, along with five-year warrants, to raise the funds. The funding will act as bridge financing as the company attempts to gain FDA approval on its Menaflex technology.

The company said it has already closed on $250,000 of the financing.

"A protracted FDA review and recent report by the FDA indicating that a re-review of the clearance of the Menaflex device was going to be undertaken, has severely reduced our financing options," explained Gerald E. Bisbee, Jr., chairman and CEO, in the release.

"This is unfortunate because it appears from the report that the FDA came to that conclusion due, not to any scientific issues, but to a number of internal FDA departures from processes, procedures and practices; including as stated in the report, '...the presence of widespread internal disagreement and confusion about the legal standard for 510(k) review...' and an admission from the FDA's Office of Chief Counsel that certain aspects of the Menaflex review, ...' supported ReGen's long standing argument that the Center was holding the CS device to the wrong review standard.'

"The science and resulting publications solidly support the safety and clinical benefit associated with the use of the Menaflex device," he concluded.

RenGen's equity (OTCBB: RGBO) improved by 5 cents, or 5.88%, to $0.90. Market capitalization is $6.55 million.

RenGen Biologics is a Hackensack, N.J.-based developer of orthopedic products.

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