Navigator plans PIPE; Generex eyes direct offering; Commerce Resources wraps upsized units

By Stephanie N. Rotondo

Portland, Ore., Sept. 14 - There seemed to be little rhyme or reason to Monday's private placement market, with deals coming and going from issuers of all shapes and sizes.

Navigator Resources Ltd. said it closed on the first tranche of its A$15 million placement of stock. The company raised A$7.5 million in the first closing and expects the remainder to settle once shareholder approval is secured.

Meanwhile, Generex Biotechnology Corp. brought a $12.25 million registered direct offering of equity to market. Proceeds will be used to further advance the company's product candidates.

Commerce Resources Corp. settled an upsized placement of units, according to a press release. The deal included both brokered and non-brokered segments.

In the technology sector, Tower Semiconductor Ltd. said it was planning to raise more than $5 million in a registered direct offering of shares. The company said the funds would be used for materials to complete recent orders.

Elsewhere, Legend Power Systems Inc. said it wrapped a C$4.39 million private placement of units. Among other Canadian issuers, Culane Energy Corp. brought a C$3 million flow-through share offering to market.

Navigator plans deal

Navigator Resources negotiated an A$15 million private placement of stock, according to a press release.

The ordinary shares will be sold in two tranches at A$0.17 per share. Investors will also receive one half-share option per one share purchased. Each full option is exercisable at A$0.25 and expires Nov. 30, 2011.

The first tranche of the transaction has already been completed for proceeds of A$7.5 million. The remainder is expected to close once shareholder approval is secured.

Proceeds will be used to re-commission the Bronzewing Gold project, among other things.

Navigator's equity (Australia: NAV) closed at A$0.28.

Navigator Resources is a West Perth, Western Australia-based precious and base metal exploration company.

Generex announces direct offering

Generex Biotechnology, a Toronto-based developer of oral drug delivery systems, announced a $12.25 million registered direct offering of equity.

The company will sell 15.31 million common shares at $0.80 per share. Investors will also receive warrants equal to 5.05 million additional shares. The warrants are exercisable at $1.00 for five years.

"We are now on solid financial ground, allowing us to concentrate our efforts on forwarding our robust portfolio of products," said Anna Gluskin, president and chief executive officer, in a press release.

"With our recent USFDA approval of a treatment IND for our flagship product, Generex Oral-lyn, we have never been more excited about our company's future and we intend to dedicate all of our efforts toward reaching our commercialization goals for the benefit of all our shareholders."

Proceeds will be used for general corporate purposes. Settlement is expected by Sept. 14.

Generex's stock (Nasdaq: GNBT) fell a penny, or 1.61%, to $0.7576. Market capitalization is $140 million.

Commerce wraps upsized offering

Commerce Resources closed on an upsized private placement of units, the company announced.

The deal originally priced Aug. 11 for C$5 million. The company ended up raising C$6.67 million.

The company sold 16.67 million units, 9.65 million of which were sold on a non-brokered basis. Each unit was sold at C$0.40 apiece and held one common share and one half-share warrant.

Each two-year whole warrant is exercisable at C$0.50 for the first year and at C$0.54 in the second.

Proceeds from the financing will be used to further Commerce's work program at its Blue River Tantalum and Niobium project in British Columbia, among other things.

"We are very gratified by the strong investor response to the private placement," stated David Hodge, president, in a press release. "The additional funds will permit us to move forward with all due haste in the development of our Blue River Project and exploration of our Eldor Project. We are strengthened by the support shown by our current shareholders as well as from institutional investors."

Commerce's stock (TSX Venture: CCE) gained C$0.005, or 1.03%, to C$0.49. Market capitalization is C$55.2 million.

Commerce Resources is a Vancouver, B.C.-based mineral exploration company.

Tower plans stock sale

Israeli chipmaker Tower Semiconductor plans to sell $5.3 million of stock in a registered direct offering, according to a regulatory filing and subsequent press release.

The company will issue about 5.36 million shares at NIS 3.73, or approximately $1.00, per share. The stock price represents a 4% premium over the trading price as of Sept. 13.

Also, investors will receive warrants good for another 1.34 million shares. The warrants are exercisable at $1.06 until Aug. 7, 2011. The warrants will have the same terms as the company's existing series 6 warrants, which trade on the Tel Aviv Stock Exchange.

The funds raised in the transaction will pay for materials and supplies needed to satisfy current orders, among other things.

Tower's equity (Nasdaq: TSEM) slipped 6 cents, or 6.36%, to $0.927. Market capitalization is $150 million.

Tower Semiconductor is based in Migdal Haemek, Israel.

Legend Power settles deals

Legend Power Systems pocketed C$4.39 million in the first tranche of its brokered private placement of units, the company said in a press release.

The deal originally priced at C$7.5 million on July 30.

In this tranche, the company sold approximately 8.79 million units out of a total 15 million units. The units contain one common share and one half-share warrant and were sold at C$0.50 each. Each whole warrant is exercisable at C$0.60 for 18 months.

Additionally, Legend Power sold 200,000 units in a non-brokered private placement for proceeds of C$100,000 and 100,000 common shares in a separate placement for proceeds of C$45,000.

The units in the non-brokered placement were the same as the brokered deal, and were also sold at C$0.50 each. The common shares were issued at C$0.45 per share.

"We are elated that our company's efforts in raising new capital at a difficult time in the financial markets have resulted in such a strong showing of confidence in our company as well as our product," stated Gerry Gill, chairman and CEO, in the release.

"This new capital will finally allow us to implement a strong sales initiative to penetrate markets in British Columbia, Ontario and the United States. We wish to sincerely thank all our investors, agents and advisors for their resilient support."

Proceeds will help the company advance its marketing and sale plan, as well as to repay certain debt.

Legend's shares (TSX Venture: LPS) ended unchanged at C$0.50. Market capitalization is C$13.5 million.

Legend Power Systems is a Burnaby, B.C.-based electrical energy conservation company.

Culane aiming for C$3 million

Culane Energy is planning a C$3 million bought-deal private placement of flow-through shares.

Under the terms of the financing, Culane intends to sell about 1.39 million of the shares at C$2.15 per share.

"It's pretty well done," said Donald D. Staus, president and CEO, in an interview with Prospect News. "It was filled pretty fast."

Staus also said the company was pleased with the terms, which were "pretty standard."

The funds will be used for exploration, though Staus declined to specify exactly what properties would be explored.

"All we have announced was that we were looking at getting back to exploration drilling in the fourth quarter," he said.

Staus added that the company has spent the majority of the last three years focusing on its Killam project.

"The main asset in this company is the Killam project," he said. "And that's fully capitalized. The company is looking to expand past that."

Settlement is expected by Sept. 29.

Culane's stock (TSX Venture: CLN) declined 5 cents, or 2.62%, to C$1.81. Market capitalization is C$43 million.

Culane Energy is a Calgary, Alta-based oil and gas exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.