Serefex seals up $5 million equity line with Cornell; higher oil prices spark rash of new energy PIPEs

By Sheri Kasprzak

New York, June 16 - PIPE activity remained light to round out the week as stocks slipped and oil prices climbed.

The higher oil prices, however, sparked new offerings in the resource-focused Canadian market.

Heading up light action in U.S. private placements was a $5 million equity line Serefex Corp. received from Cornell Capital Partners, LP.

The equity line is one of several that have popped up in the market this week. Acacia Research Corp. received a $50 million equity line from Cornell on Thursday and on Monday Lexicon Genetics Inc. wrapped a $75 million equity line with Azimuth Opportunity Ltd.

The two-year line requires Cornell to buy shares of Serefex at 95% of the volume weighted average price of the company's stock for the five trading days after notice of a draw.

There is a $300,000 limit on each draw.

Newbridge Securities Corp. was the placement agent.

The stock lost less than a penny on Friday to close at $0.05 (OTCBB: SFXC).

Based in Naples, Fla., Serefex manufactures adhesive-backed magnetic tape.

One market source said equity lines are always popular when the stock market takes a hit.

"When stocks are down, it just makes sense to look at other possibilities," he said. "Equity lines are incredibly popular because your current stock doesn't really matter. If things get bad and you need money, it's a really good tool."

Oil prices advance

Elsewhere in PIPEs Friday, oil prices crept up over $70 per barrel, pushing several energy placements in Canada.

Oil prices gained 38 cents to end at $69.88 per barrel after trading higher earlier in the session. On Thursday, oil prices gained 36 cents to close at $69.50 per barrel.

Heading up those oil offerings was a C$15 million placement priced by Albion Petroleum Ltd.

The company intends to sell up to 30 million receipts, which are exchangeable on a one-for-one basis for units.

The units are comprised of one share and one half-share warrant. Each whole warrant is exercisable at C$0.75 for one year.

Albion's stock remained unchanged at C$0.42 Friday (TSX Venture: ABP).

Albion, located in Calgary, Alta., is an oil and natural gas exploration company.

Another Calgary-based oil concern, Defiant Resources Corp., negotiated a C$10,375,000 private placement of up to 2.5 million flow-through shares at C$4.15 each.

The deal is being placed through a syndicate of underwriters led by Dundee Securities Corp.

The offering is scheduled to wrap up by June 29.

The stock gained 4 cents, or 1.21%, to close at C$3.34 (Toronto: DFR).

Proceeds will be used for the company's 2006 capital program.

Finally, Stylus Energy Inc. arranged a C$10,003,500 private placement.

The offering includes up to 2,106,000 flow-through shares at C$4.75 each.

The placement is being conducted through a syndicate of underwriters led by Peters & Co. Ltd. The deal is slated to close June 30.

On Friday, the company's stock gained 8 cents, or 2.11%, to end at C$3.88 (Toronto: STY).

Proceeds will be used for exploration on the company's Canadian oil and natural gas properties.

Stylus is also based in Calgary.

Richards Oil's stock ends up

In other energy news, Richards Oil & Gas Ltd. saw its stock edge up slightly after the company priced a C$6.5 million private placement of 8% convertible debentures on Thursday.

The company's stock climbed 2 cents, or 1.23%, to end at C$1.65 (TSX Venture: RIX).

On Thursday, the stock gained 8 cents, or 5.16%, to settle at C$1.63.

The five-year debentures are convertible into common shares at C$1.65 for the first two years, at C$1.82 in the third year; at C$2.00 in the fourth year and at C$2.20 in the fifth year.

Richards is an oil and natural gas exploration company based in Calgary.

Western Uranium's C$3.25 million PIPE

In other Canadian private placement offerings, Western Uranium Corp. priced a C$3.25 million deal.

The offering includes up to 2.6 million flow-through shares at C$1.25 apiece.

The deal is being placed through agent Dundee Securities Corp. and Haywood Securities Inc.

Proceeds will be used for exploration on the company's Canadian mineral properties in the Thelon basin in Nunavut and in the Northwest Territories.

The stock closed unchanged at C$1.35 (TSX Venture: WUC).

Vancouver, B.C.-based Western is a uranium exploration company.

Streetlight plans stock deal

Streetlight Intelligence Inc. watched its stock jump by 10.37% after it priced a C$2,500,004 stock offering.

The stock gained 14 cents to close at C$1.49 (TSX Venture: SLQ).

The offering includes up to 1,923,080 shares, at C$1.30 each. The price per share is a 3% discount to the company's C$1.35 closing stock price on Thursday.

Proceeds will be used for working capital.

Based in Victoria, B.C., Streetlight develops technologies that allow streetlights to be remotely programmed to turn on and off at specific times.

Acacia's stock edges up

After closing the previously announced $50 million equity line on behalf of subsidiary CombiMatrix Group, Acacia Research Corp.'s stock advanced by just a penny on Friday.

The stock closed the day $1.71 (Nasdaq: CBMX).

On Thursday, when the equity line was announced, the stock gained 8.28%, or 13 cents, to close at $1.70.

In the equity line, Cornell Capital Partners, LP agreed to buy shares of CombiMatrix at a 2.5% discount to the volume weighted average price for the five trading days after notice of a draw.

Newport Beach, Calif.-based CombiMatrix Group develops technologies to produce customizable arrays - or semiconductor-based tools used to determine the roles of genes, gene mutations and proteins.

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