Prime Sun secures €51.32 million from Bangkok Solar; Arena Pharmaceuticals gets $35.5 million

By Stephanie N. Rotondo

Portland, Ore., June 3 - Thursday's PIPE market saw a fair mix of sectors entering the market - from mining to energy to pharmaceuticals - but it also saw a couple double-digit deals.

Prime Sun Power Inc. announced a strategic investment and partnership with Bangkok Solar Power Co. Ltd. Bangkok will invest €51.32 million in a private placement of stock and will also be appointed general contractor of Prime Sun's contract.

Meanwhile, Arena Pharmaceuticals Inc. is receiving further support from Deerfield Management. The investor will purchase more than $35.5 million in Arena's stock, giving the company enough funding to advance its drug candidate.

In the mining arena, Ucore Uranium Inc. said it was seeking C$4 million in exploration funding via a private placement of units.

YM BioSciences Inc. wrapped a private stock sale, taking in more than $3 million. The funding will help the company with its accelerated clinical trials.

And, Galantas Gold Corp. said it would issue new units in order to raise C$2.5 million. The company wants the money to finance its 2010 drilling program.

Prime Sun, Bangkok Solar partner

Prime Sun Power, a Summit, N.J.-based provider of renewable energies, raised €51.32 million from a private placement of common stock, according to a press release.

Bangkok Solar Power Co. Ltd. was the investor. The deal was completed on May 21.

Prime Sun issued approximately 6.64 million of the shares at €7.73 per share.

The companies "have agreed to work together in a strategic alliance whereby BSP shall be appointed as the general contractor to perform the EPCI contract for PSP solar power plants for at least 50 mega watts peak per annum until 2013," the company said in the release.

"BSP will purchase the PSP shares in increments of €400,000 upon activation of each megawatt peak of solar power to be covered by the EPCI service agreement. If all of strategic alliance shares are acquired, BSP will own 14.2% of PSP's issued and outstanding shares of common stock."

"The partnership with BSP is a very important milestone in the company's expansion plans and strategy to partner with industry leaders to achieve our business plan goals and maintain sustainable growth," remarked Olivier de Vergnies, chief executive officer, in the release.

"The investment decision is a major forward step in our strategy to expand our company's activities and increase the company's market share in Europe," added Podduang Don Kongkamee, chief operations officer of BSP.

Prime Sun's stock (OTCBB: PSPW) improved 5 cents, or 5.56%, to $0.95. Market capitalization is $35.9 million.

Arena gets investment from Deerfield

San Diego-based Arena Pharmaceuticals announced a $35.53 million private placement of equity.

Deerfield Management is the sole investor.

Arena will sell 11 million common shares at $3.23. And, in connection with the financing, Arena has agreed to reduce the exercise price of 16.2 million warrants issued to Deerfield in June 2009 to $3.45 from $5.42. Deerfield had previously received 28 million warrants in connection with a loan given to Arena last year.

The company intends to use the proceeds to advance its lorcaserin drug.

"We are pleased that Deerfield continues to support our efforts as we seek to obtain FDA approval of lorcaserin," stated Jack Lief, president and CEO, in a press release. "Our intention remains to establish an agreement with a pharmaceutical company to commercialize lorcaserin. This funding puts us in a stronger financial position as we continue to pursue this goal and progress towards lorcaserin's advisory committee meeting and PDUFA date."

Arena's equity (Nasdaq: ARNA) 10 cents, or 3.10%, to $3.13. Market capitalization is $326 million.

Ucore plans unit offering

Ucore Uranium arranged a C$4 million private placement of units, the company said in a statement.

Ucore intends to sell the units at C$0.22 each, with each unit containing one common share and one half-share warrant. Whole warrants are exercisable at C$0.30 for two years.

Proceeds will be used for exploration, with particular focus on Ucore's Bokan Mountain property, as well as for general working capital. Settlement is expected by June 22.

Calls seeking further comment were not returned Thursday.

Ucore's shares (TSX venture: UCU) gained 2 cents, or 6.67%, to C$0.24. Market capitalization is C$19.9 million.

Ucore Uranium is a Halifax, N.S.-based uranium exploration company.

YM seals over $3 million

YM BioSciences pocketed $3.18 million from a private placement of equity.

The Mississauga, Ont.-based company sold 2.5 million common shares at C$1.27 each.

"The investment was made by a leading international health-care-specific investment fund management company recognizing the increased demands on YM's cash resources from the recently announced expansion by the company into the earlier-than-planned phase 2 component of its trial at Mayo Clinic with CYT 387 in myelofibrosis," the company said in a press release.

"The recent decision by the company to accelerate the current phase 1/2 clinical trial of CYT387 in myelofibrosis through an earlier-than-planned initiation of the phase 2 component supports our belief that CYT387 has excellent potential for clinical success," said David Allan, chairman and CEO, in the release.

"We anticipate that headline safety and tolerability data from the phase I arm of this study will be available in the next quarter with preliminary phase II data expected to be submitted for presentation at the American Society of Hematology conference late in 2010. The company is also exploring opportunities for significant further expansion of the program, in light of the favorable findings to date."

YM's equity (Amex: YMI) firmed by a penny, to 0.76%, to $1.33. Market capitalization is $100 million.

Galantas to sell units

Galantas Gold is seeking C$2.5 million from a private placement of units.

The company will sell 50 million units at C$0.05 each. The units will consist of one common share and one warrant.

The warrants are exercisable at C$0.10 for two years.

"The company intends to use the funds from the placing for an expanded drilling program, mobile and fixed plant improvements and working capital," Galantas said in a press release. "The expanded drilling program will concentrate initially on targets close to the operating mine site that have already been reported upon by consultants ACA Howe and will commence summer 2010."

Galantas' stock (TSX Venture: GAL) ended unchanged at C$0.03. Market capitalization is C$5.7 million.

Galantas Gold is a Toronto-based gold 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.