Stella-Jones offers subscription receipts; Rainy River places units; Quetzal seeks funds

By Stephanie N. Rotondo

Portland, Ore., Feb. 25 - Thursday's PIPE market saw a couple of relatively large placements, though the majority of transactions during the day came in single-digit dollar amounts.

Stella-Jones Inc. and Rainy River Resources Ltd. had the day's largest deals. Stella announced its intent to raise more than C$80 million via a private placement of subscription receipts, while Rainy River said it had settled a private placement of units for proceeds of more than C$55 million.

Meanwhile, Quetzal Energy Ltd. said it was seeking C$6.3 million from a private placement of units. The company could raise more than C$9 million if its greenshoe is fully exercised.

Also, International Isotopes Inc. pocketed $3.08 million from a registered direct offering of convertible debentures.

Among other registered direct offerings, Palatin Technologies Inc. brought a $2.58 million deal to market. The company will sell units in its effort to raise the funding.

Stella-Jones to sell subscription receipts

Stella-Jones, the Westmount, Quebec-based producer of treated wood products, announced an C$80.05 million private placement of subscription receipts.

The company will sell the receipts - which are convertible into common stock on a one-for-one basis - at C$25.00 each.

Stella Jones International SA and Solitary Fund QFL have committed to purchasing C$15 million and C$5 million of the receipts, respectively. The purchases are not expected to affect control of the company.

The remaining C$60.05 million is underwritten.

Proceeds will be used to fund the planned acquisition of Tangent Rail Corp. Settlement is expected by March 15.

Stella's stock (Toronto: SJ) declined 15 cents, or 0.57%, to C$25.95 on Thursday. Market capitalization is C$327 million.

Rainy River concludes units sale

Rainy River Resources settled its previously announced private placement of units, taking in C$55.01 million.

The deal originally priced at C$40 million with a C$10 million greenshoe on Feb. 1. The greenshoe was upsized to C$15.01 million on Feb. 19.

The company issued a total of 11.11 million units at C$4.95 each. Approximately 3.03 million of the units were part of the over-allotment option.

The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$7.10 for two years.

Proceeds will be used to advance the Rainy River Gold Project in Northwestern Ontario, as well as for working capital.

Calls seeking comment were not returned Thursday.

Rainy River's equity (TSX Venture: RR) gained 5 cents, or 1.02%, to C$4.94 on Thursday. Market capitalization is C$295 million.

Rainy River Resources is a Vancouver, B.C.-based metals exploration company.

Quetzal seeks up to C$9.1 million

Quetzal Energy is seeking C$6.3 million from a private placement of units, according to a press release.

The deal also has a C$2.8 million, or 20 million units, greenshoe.

The company will sell the units consisting of one common share and one warrant at C$0.14 per unit. The warrants are exercisable at C$0.20 until Oct. 26, 2011.

Proceeds will be used for exploration and development and for general corporate purposes. Settlement is expected by March 18.

Quetzal's shares (TSX Venture: QEI) fell half a cent, or 3.45%, to C$0.14 on Thursday. Market capitalization is C$25.6 million.

Quetzal Energy is a Toronto-based energy company.

International Isotopes settles offering

International Isotopes, an Idaho Falls, Idaho-based medical technology company, raised $3.08 million via a private placement of 18-month convertible debentures, according to a regulatory filing and subsequent press release.

The debentures are convertible into common stock at $0.35 per share. The debentures mature Aug. 24, 2011.

Additionally, investors received 50% warrant coverage. The warrants are exercisable at $0.60 for four years.

"Our 'green' uranium de-conversion and fluorine extraction project continues to gain momentum and its progress is being well received by prospective customers," said Steve T. Laflin, chief executive officer, in the release. "In this most recent capital raise we have seen the continued confidence of many of our strongest existing shareholders as well as the return of several major shareholders from past investment rounds and new investors as well.

"The project remains on schedule and is making positive progress on all fronts," he added. "The company continues to work toward developing additional financing for future project development."

International's stock (OTCBB: INIS) dipped 2 cents, or 4.65%, to $0.41 on Thursday. Market capitalization is $126 million.

Palatin plans direct placement

Palatin Technologies is planning a $2.58 million registered direct offering of units, the company announced.

The company will sell 9.6 million of the units at $0.27 each. The units will contain one common share, a series A warrant for 0.33 of a common share and a series B warrant for 0.33 of a share. The series A warrants are exercisable at $0.30 for three years, while the series B warrants are exercisable at $0.27 for 180 days.

Proceeds will be used to advance clinical studies of bremelanotide for treatment of erectile dysfunction, for funding research and development and for general corporate purposes. Settlement is expected by March 2.

Palatin's equity (Amex: PTN) dropped 2.9 cents, or 9.77%, to $0.265. Market capitalization is $25.3 million.

Palatin Technologies is a Cranbury, N.J.-based biopharmaceutical company.

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