Resverlogix plans $15 million placement; Yoho raises C$15.1 million

By Laura Lutz

Des Moines, Jan. 2 - Resverlogix Corp. priced a $15 million private placement of subordinated convertible promissory notes during a slow day on Tuesday.

With most U.S. trading halted for former President Gerald Ford's memorial service, PIPEs activity was dominated by Canadian companies, including Resverlogix.

The biotech company plans to sell 8% notes convertible into common stock at $10.40 per share. Investors will also receive warrants for about 361,000 shares, exercisable at $13.00 each.

Oppenheimer & Co. Inc. acted as placement agent with Caris & Co. as co-agent.

After the deal was announced on Tuesday morning, the company's stock lost C$1.25, or 8.12%, to close at C$14.15 (Toronto: RVX).

Calgary, Alta.-based Resverlogix focuses on therapies for cardiovascular disease.

Yoho settles placement

Canadian resource companies constituted most of the rest of the activity on Tuesday. Yoho Resources Inc. closed a private placement of shares for C$15,108,945. The company had increased the offering size from the C$14.8 million deal that priced on Dec. 19.

The company sold 2,063,050 non flow-through shares at C$4.90 each and 800,000 flow-through shares at C$6.26 each.

The placement was conducted through a syndicate led by FirstEnergy Capital Corp. and including Peters & Co. Ltd., Sprott Securities Inc. and Westwind Partners Inc.

The company plans to use the proceeds to partially fund an acquisition of petroleum and natural gas properties in British Columbia and for working capital.

Based in Calgary, Alta., Yoho is an oil and natural gas company.

Piper and Garson pocket $11 million

Two other resource companies, Piper Capital Inc. and Garson Resources Ltd., settled parallel private placements to fund their joint acquisition of the New Britannia Mine in Manitoba.

Piper sold 16,090,500 non flow-through units and 7,987,750 flow-through shares for C$6,739,610.

Garson sold 16.035 million non flow-through units and 4.415 million flow-through shares for C$4,310.750.

In both deals, the units were priced at C$0.20 each, and the flow-through shares were priced at C$0.25 per share. The units consist of one share and one half-share warrant with each whole warrant exercisable at C$0.27 for two years.

MineralFields Group bought C$1.5 million of the flow-through shares from Piper, which said in a Tuesday release that it was "pleased to be associated" with the investor.

When the deals priced on Dec. 5, Piper planned to raise C$6.06 million and Garson planned to raise C$4.04 million.

Piper will hold a 60% interest in the New Britannia Mine, and Garson will hold 40%. Their interest in the mine will be held through Pegasus Mines Ltd.

Bolder Investment Partners Ltd. was the agent for both placements. The portion purchased by MineralFields was non-brokered.

Both mineral companies are based in Vancouver, B.C.

Numerex sells convertible note

In the only U.S. deal announced on Tuesday, Numerex Corp. said it arranged a private placement of a secured convertible note with investor Laurus Master Fund, Ltd.

The 9.5% four-year note is convertible into common stock at $10.37 per share.

The company may force conversion of the note in tranches of up to $2.5 million if the company's shares trade above $11.40 for 12 consecutive trading days.

Laurus also received warrants for 158,562 shares, exercisable at $10.13 each.

Proceeds from the deal will be used for strategic initiatives including joint ventures, co-marketing programs and acquisitions.

"We are pleased with the confidence that Laurus continues to express in Numerex," Stratton Nicolaides, chairman and chief executive officer of Numerex, said in a news release.

"This note contains a number of attractive features including the ability to prepay all outstanding amounts at any time without restrictions or penalties."

Based in Atlanta, Numerex provides software for wireless networking.

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