VisCorp pockets $15.23 million from PIPE; Grande Cache Coal negotiates C$37.5 million financing

By Sheri Kasprzak

New York, Jan. 28 - VisCorp, Inc. kicked off the week in PIPEs by sealing the second tranche of its private placement for $5 million, bringing to $15.23 million the amount the company has raised so far in the deal.

Mark Elenowitz with broker-dealer TriPoint Global Equities said in an interview with Prospect News on Monday that the company is a "bright light in a bad market," and this helped VisCorp to conduct a PIPE that was oversubscribed.

"They have 40% growth every year," said Elenowitz. "The reason they were able to do so well is that, in this market, with all the negative things that are going on, they're kind of like a bright light in a bad market."

The company has 22 drugs in the Chinese national catalog, Elenowitz said, and several additional drugs are up for approval by the Chinese government.

"It [the PIPE] priced at four times our weighted projection, so we feel pretty good," he added. "It was fair for the issuer and fair for the investor."

On Monday, VisCorp's stock climbed by 10.29%, or 28 cents, to close at $3.00 (OTCBB: VSCO).

VisCorp sells note units

In the offering, the company sold 152.25 note units at $100,000 each in two tranches. In the first tranche, which closed Jan. 17, the company sold 102.25 units.

Each unit includes $100,000 principal of 10% convertible exchangeable notes due June 30, 2009, five-year class A warrants for 31,250 shares and seven-year class B warrants for 31,250 shares.

The five-year warrants are exercisable at $2.50 each and the seven-year warrants at $3.00 each.

In an earlier press release, VisCorp indicated that it plans to register another 25 million series A convertible preferred shares. When that happens, each $100,000 in notes will automatically be converted into 62,500 preferred shares.

The preferreds have a 10% dividend and are convertible into common shares on a one-for-one basis.

Proceeds will be used for working capital and general corporate purposes.

VisCorp is based in Sewickley, Pa. The company produces pharmaceuticals in the People's Republic of China.

Grande Cache plans financings

Moving north of the border, Grande Cache Coal Corp. negotiated the terms of a C$37.5 million financing that includes C$17.5 million in convertible debentures and C$20 million in a secured revolving credit facility with Brookfield Bridge Lending Fund Inc., according to a term sheet.

The three-year debenture bears interest at Canadian Prime rate plus 175 basis points. The conversion price is C$1.825 each, convertible at Brookfield's option.

The debenture is redeemable at any time in multiples of C$250,000 upon 30-days notice at 107% of par plus interest.

Grande Cache may require Brookfield to convert half of the debenture at the conversion price, assuming the 15-day volume weighted average price of the company's stock exceeds C$2.50 per share. Grande Cache may require the investor to convert the balance of the debentures if the 15-day volume weighted average trading price exceeds C$4.00 per share.

The metallurgical coal-mining company plans to use the proceeds for general corporate purposes.

The offering is set to close Feb. 15.

The company's stock gained 5%, or 8 cents, to end at C$1.68 (Toronto: GCE).

Grande Cache is based in Calgary, Alta.

Bullion River closes offering

In other resources-related offerings, Bullion River Gold Corp. recently wrapped a $2.5 million offering of units, according to a filing with the Securities and Exchange Commission.

The company issued 10 million fully detachable units at $0.25 each. Each unit includes one share and one warrant with the warrants exercisable at $0.40 each for two years.

The proceeds from the deal will be used for working capital.

Bullion River's stock slipped by 6.67%, or 2 cents, on Monday to close at $0.28 (OTCBB: BLRV).

Located in Reno, Nev., Bullion River mines for gold and silver.

Wolverine Tube closes PIPE

In other PIPE news Monday, Wolverine Tube, Inc. announced the completion of its $4.49 million offering of preferred stock with the Alpine Group, Inc.

Alpine purchased 4,494 series A preferreds.

The preferreds are convertible into common shares at $1.10 each.

The investment allows Alpine and its co-investors to maintain its 55% ownership in Wolverine.

Shares of Wolverine ended the day up 33 cents to close at $21.52 (NYSE: WWW).

Wolverine is a copper and copper alloy tube, fabricated products and metal joining products provider based in Huntsville, Ala.

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