Capstone aims for $12.5 million; Kamada wraps stock offering; Fortress Minerals plans stock sale

By Stephanie N. Rotondo

Portland, Ore., May 4 - The private placement market on Monday had a mix of Canadian and U.S. companies coming to market, with deals ranging from the low millions to $12.5 million.

A majority of the day's deals came from the mineral exploration sector. Issuers associated with the medical arena were also represented.

Capstone Turbine Corp. brought one of the day's biggest placements. The turbine manufacturer hopes to raise $12.5 million via a direct offering of units, according to a press release.

In the biopharmaceutical sector, Israeli company Kamada Ltd. announced it closed an approximately $7 million placement of stock and warrants. The company plans to use proceeds to advance its clinical pipeline.

Among the mining companies coming to market, Fortress Minerals Corp. said it was planning a C$3.5 million placement of stock. Kinross Gold Corp. is the lead investor.

Also, El Nino Ventures Inc. plans to use proceeds from its C$2.25 million placement of units to further its Kasala work program.

Back in the health care sector, Haemacure Corp. arranged a $2.5 million bridge loan. The company expects the funds will fund operations through the year.

Capstone aims for $12.5 million

Capstone Turbine, a Chatsworth, Calif.-based developer of low-emissions micro-turbine systems, announced a registered direct offering of equity units Monday.

Under the terms of the $12.5 million deal, Capstone will sell approximately 14.45 million units at $0.865 per unit. The units will consist of one common share and one warrant equal to 0.75 shares. Each whole warrant is exercisable at $0.95 for seven years.

The company expects net proceeds to be $11.2 million. Settlement is expected by May 7.

E-mails to the company seeking comment went unreturned Monday.

Capstone's stock (Nasdaq: CPST) fell $0.1277, or 14.76%, to $0.7373. Market capitalization is $131 million.

Kamada wraps stock placement

Biopharmaceutical company Kamada concluded a private placement of stock and warrants, the company announced.

The company sold approximately 2.62 million shares at NIS 11.00 per share to its board chairman, Ralf Hahn, and to UDT Med Holdings LLC. Investors also received 40% warrant coverage.

All told, the company raised NIS 28.84 million, or $7 million.

"We are pleased that we were able to involve both existing and new investors in this financing," said David Tsur, chief executive officer of Kamada, in a statement. "We believe it demonstrates confidence in Kamada's development projects and we look forward to using the proceeds of the offering to advance our clinical pipeline and to accelerate the entrance of our products into the U.S. and E.U. markets."

Kamada's stock (Pink Sheets: KAMAF) remained unchanged at $9.25, where it last traded on June 2, 2008.

Kamada is a Rehovot, Israel-based company that develops, produces and markets pharmaceuticals administered by infusion during emergency and trauma situations.

Fortess plans stock sale

Fortress Minerals announced plans to raise C$3.5 million through a private stock placement.

The Vancouver, B.C.-based company will issue 14 million common shares atC$0.25 per share. Kinross Gold Corp. has already committed to purchasing C$2.5 million, or 10 million shares. Upon completion, Kinross will hold 6% of Fortress' equity, according to a press release.

Proceeds from the financing will be used to further the company's Svetloye gold project. The project is located in eastern Russia and has thus far produced 1.428 million ounces of gold, the company said. Fortress is planning an "aggressive work program" in 2009, which includes trenching, sampling, geophysics and more than 8,000 meters of drilling. It is expected that two diamond drill rigs will begin drilling the mine in May.

"We are very pleased to have Kinross recognize our excellent team as well as the high potential of the Svetloye Gold Project," said Lukas Lundin, president and chief executive officer, in the release. "We look forward to further success on this exciting project and exploring new opportunities in Russia."

Fortess' equity (TSX Venture: FST) gained 6 cents, or 2,060%, to $0.35. Market capitalization is C$40.6 million.

El Nino to issue units

El Nino Ventures will take in C$2.25 million via a private placement of units, the company said.

Under the terms of the non-brokered deal, El Nino will sell up to 22.5 million units at C$0.10 per unit. Each unit will contain one common share and one warrant. The warrants are exercisable at C$0.25 for 18 months.

El Nino plans to use proceeds to further 2009 exploration program for the DRC project. The project focuses on the Kasala East Zone in the Congo. The company said that results from the Kasala Main Zone in 2008 proved to be significant and it is believed that the East Zone will bring similar results.

"This financing will give the company the funds required to move the Kasala Project forward," said Jean Luc Roy, president and CEO, said in a statement. "This project has great potential and the planned drill program will allow a full initial assessment. Much work has been done in compiling and analyzing the data from our 2008 exploration program resulting in the identification of several first class drill targets following the geological model we have put together for this project."

El Nino's shares (TSX Venture: ELN) moved up 2.5 cents, or 35.71%, to C$0.095. Market capitalization is C$3.42 million.

El Nino Ventures is a Vancouver, B.C.-based exploration stage company engaged in the acquisitions, exploration and development of mineral properties.

Haemacure secures loan

Haemacure has secured a $2.5 million convertible senior secured bridge loan from Angiotech Pharmaceuticals Inc., according to a press release.

The loan is convertible into other securities under certain circumstances. The release declined to specify which securities and under what sort of circumstances.

In connection with the deal, Angiotech has already advanced $200,000 to Haemacure. Settlement is expected by May 31.

Haemacure said it expects the funds will "enable it to operate for a period of approximately 10 to 12 months from the date of the closing of the loan."

"This is great news for Haemacure," stated Joseph Galli, chairman and CEO, in the release. "We look forward to closing this bridge financing and collaborating with Angiotech."

Haemacure's stock (Toronto: HAE) increased 3 cents, or 428.47%, to C$0.037. Market capitalization is C$9.28 million.

Haemacure is a Montreal-based developer of biological adhesives and other materials used to surgical wound care. Angiotech Pharmaceuticals is a global specialty pharmaceutical and medical device company.

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