Senesco raises $2.28 million in stock sale; Canadian PIPEs feature influx of flow-through deals

By Sheri Kasprzak

New York, Oct. 11 - Private placement action was led Wednesday by a $2,284,252 offering from Senesco Technologies, Inc.

Meanwhile, in Canada, flow-through stock deals made up the majority of activity there as the year winds down and investors seek out the connected tax break.

Senesco issued 1,986,306 shares at $1.15 each. About $1.5 million of the offering was purchased by members of the company's board of directors and the rest was purchased by institutional and accredited investors.

The price per share is equal to the company's $1.15 closing stock price on Oct. 9.

The investors received warrants for 993,153 shares, exercisable at $1.265 each.

Proceeds will be used for preclinical research for the company's programs in cancer and inflammatory diseases. The rest will be used for general corporate purposes.

According to the latest earnings statement, the company reported a net loss of $717,421 for the quarter ended March 31, compared with a net loss of $908,900 for the same quarter of 2005.

New Brunswick, N.J.-based Senesco develops treatments for cancer, glaucoma, ischemia and arthritis.

IR stock takes off

In other biotech-related news, IR Biosciences Holdings, Inc. watched its stock jump by 23.8% on Wednesday after announcing the completion of a $2,276,500 private placement Tuesday.

The stock climbed by 5 cents to end the session at $0.26 (OTCBB: IRBO). IR's stock remained unchanged on Tuesday to close at $0.21.

Volume of IR shares traded also took off with 308,662 shares compared to the average 73,012 shares.

The company sold 91.06 units at $25,000 each.

Each unit includes 156,250 common shares and a warrant for 78,125 shares.

IR Biosciences, based in Scottsdale, Ariz., is a biotechnology company focused on treatments for radiation exposure.

Arsenal, Liberty lead flow-throughs

Heading to the Canadian PIPE market, Arsenal Energy Inc. and Liberty Mines Inc. led a slate of flow-through stock offerings Wednesday.

One Canadian market source said earlier in the week that many Canadian issuers are pricing flow-through offerings as the year winds down because of the tax break connected to the securities.

In the Arsenal deal, the company plans to sell 5,454,545 shares at C$1.10 each, a 13.4% premium to the company's C$0.97 closing stock price on Tuesday. The deal is scheduled to close Oct. 18. Proceeds will be used for Canadian exploration expenses.

The company's stock dipped by 3 cents, or 3.09%, to close at C$0.94 (Toronto: AEI).

Calgary, Alta.-based Arsenal is an oil and natural gas exploration company.

The Liberty offering includes flow-through shares at C$0.90 each and units of one share and one half-share warrant at C$0.85 each. The whole warrants are exercisable at C$1.00 each. The exact terms of the deal have not been determined. Salman Partners Inc., the agent, has a greenshoe for up to C$1 million.

The company's stock gained 2 cents Wednesday to end at C$0.90 (TSX Venture: LBE).

Proceeds will be used for exploration on the Redstone, McWatters, Hart and McAra projects.

Slam plans offering

In other flow-through deals, Slam Exploration Ltd. intends to raise up to C$2.11 million private placement.

The offering includes up to 12 million flow-through units at C$0.13 each and up to 5 million non flow-through units at C$0.11 each.

The flow-through units are comprised of one share and one warrant. Each warrant is exercisable at C$0.30 for 18 months.

The non flow-through units consist of one share and one warrant. The warrants are also exercisable at C$0.30 apiece for 18 months.

The offering is being placed through a syndicate of agents led by Pacific International Securities Inc.

The deal was announced Wednesday afternoon, and the company's stock gained 4.55%, or half a cent, to settle at C$0.115 (TSX Venture: SXL).

Proceeds from the flow-through units will be used for exploration on the company's Nash Creek zinc, lead and silver deposit. The rest of the proceeds will be used for general corporate purposes.

Based in Miramichi, N.B., Slam is a mineral exploration company.

Titan stock rises on PIPE

After announcing a $1.25 million convertible debenture offering Wednesday morning, Titan Global Holdings, Inc.'s stock edged upward.

The stock gained 3 cents, or 3.75%, to close at $0.83 (OTCBB: TTGL).

In the offering, the company sold 8% debentures that are convertible at $1.00 each, a 26.5% premium to the company's $0.79 closing stock price on Friday.

The investors received warrants for 15,000 shares exercisable at $1.00 each for five years and warrants for 500,000 shares exercisable at $1.15 each for five years.

The debentures may be redeemed in stock at 90% of the lowest volume weighted average price for the 15 trading days before redemption.

If either warrant is exercised, the proceeds will be used by the company's Oblio Telecom unit for working capital and debt reduction.

Proceeds from the debentures will be used for growth and working capital.

"Titan, its management and strategic investors, continue to consider its share price as a compelling value proposition," said David Marks, the company's chairman, in a news release. "With this financing, we believe this institutional investor has ratified Titan's view of the value proposition its current share price represents given the significant premium to which the fixed convert was set as compared to our closing share price last Friday."

Titan, based in Dallas, is a telecommunications company.

Alchemy stock dips

Alchemy Enterprises, Ltd.'s stock fell by 5.44% Wednesday after concluding a $12,075,000 private placement on Tuesday.

The stock gave up 8 cents to end at C$1.39 (OTCBB: ACHM). On Wednesday, when the deal closed, the stock edged up 2 cents to close at $1.47.

In the placement, Alchemy issued shares at $0.35 each, a 75.8% discount to the company's $1.47 closing stock price on Monday.

Proceeds will be used for the company's research and development partnership with NASA's Jet Propulsion Lab. The company will also use the proceeds to deploy its electric power cell unit in a hybrid bus.

Scottsdale, Ariz.-based Alchemy develops electric power cell technologies.

© 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.