CGX Energy to raise $30 million, TGX World Energy announces C$12 million deal

By Laura Lutz

Des Moines, Oct. 16 - Canadian companies dominated PIPEs news on Tuesday, led by CGX Energy Inc. The Toronto-based oil and gas exploration company announced plans for a $30 million private placement of shares.

The placement will consist of 15 million shares at $2.00 each.

There is a $5 million greenshoe in the deal.

Cormark Securities Inc. will lead a syndicate of underwriters that also includes Fraser MacKenzie Ltd., Jennings Capital Inc., Brant Securities Ltd. and Toll Cross Securities Inc.

CGX's shares finished Tuesday unchanged at C$2.15 (TSX Venture: OYL.U).

TG World Energy Corp., another Canadian oil and gas exploration company, arranged a C$12 million private placement of shares through agents Wellington West, Tristone Capital Inc. and Jennings Capital Inc.

The agents in that offering have a greenshoe for C$3 million.

The company plans to set pricing in the context of the market, according to a news release.

"The principal purpose of the offering is to allow TG World to advance its exploration program in Alaska while it awaits the receipt of funds from the State of Alaska's exploration credit program," the company said in the news release.

The proceeds will also be used for working capital.

TG World is based in Calgary, Alta. Its shares rose C$0.02, or 3.85%, to close at C$0.54 on Tuesday (TSX Venture: TGE).

SPI Lasers pockets £10.5 million

On the other side of the Atlantic, SPI Lasers plc raised net proceeds of £10.5 million from three private placements of shares.

The company sold 29,635,415 through two institutional placements, for net proceeds of £8.5 million. That offering was divided into two parts in order to protect the company's venture capital trust status, according to a news release.

In addition, Furukawa Electric Co., Ltd. bought 6,666,667 shares of SPI for a total of £2 million.

Panmure Gordon was the underwriter.

SPI's news release said that Furukawa Electric decided to make the investment in order to strengthen the fiber laser business of FEC Group, including its affiliate, OFS Fitel, LLC.

"We are delighted to have completed the fundraising with the support of existing and new institutional investors together with a key strategic investment from FEC," David Parker, chief executive of SPI, said in the release.

"Whilst the operational benefits of our relationship with FEC will materialize over time, it is clear that the skills and resources now available to us will increase our competitive advantage," he said.

The SPI release also quoted Haruki Ogoshi, vice president of Fitel Products Division, Telecommunications Company, who commented, "We are delighted to make this strategic investment in SPI. We hope this strategic investment and its ancillary potential business collaboration with SPI will expand the fiber laser business and establish a win-win relationship for FEC and SPI."

SPI is a fiber-based laser company with headquarters in Southampton, England. Its shares fell 37.5p, or 42.86%, to end Tuesday at 50p (London: SPIL).

OncoMethylome raises €10.63 million

Over in Belgium, OncoMethylome Sciences SA announced completion of an oversubscribed €10.63 million private placement of shares.

The company sold 1,063,351 shares at €10.00 each.

The offering settled for more than double its planned amount because of "interest from a large number of high-quality European institutional investors," according to a news release.

"I am very pleased that we have secured this additional funding which reinforces our financial position and will support our product development and clinical trials," chief executive officer Herman Spolders said in the release.

"The funds were raised from a broad range of institutional investors thus further strengthening our shareholder base and share liquidity."

Piper Jaffray Ltd., Kempen & Co. and ING Belgium acted as agents.

OncoMethylome is a molecular diagnostics company based in Liege, Belgium. The company is focused on developing tests for detecting cancer.

Its shares lost €0.46, or 4.2%, to close at €10.49 on Tuesday (Brussels: ONCOB).

Aastrom plans $13.5 million sale

In U.S. news, Aastrom Biosciences, Inc. negotiated a $13.5 million direct placement of units.

The company plans to sell about 11.8 million units of one share and one half-share warrant at $1.14 per unit. Each whole warrant will be exercisable at $1.5875 for five years, beginning six months after issuance.

BMO Capital Markets Corp. acted as placement agent.

Settlement is expected within the next few days.

Based in Ann Arbor, Mich., Aastrom is focused on a technology that uses a patient's own cells to manufacture cell products for treatment of chronic diseases and serious injuries.

The company's shares closed down 17 cents, or 13.39%, at $1.10 on Tuesday before dropping another 1 cent in after-hours trading (Nasdaq: ASTM).

Scorpio Mining prices deal

Scorpio Mining Corp. set pricing in the C$20 million private placement of units that it announced on Monday.

The company plans to sell units of one share and one quarter-share warrant at C$1.40 per unit. Each whole warrant will be exercisable at C$1.85 for three years.

The agents, a syndicate led by CIBC World Markets Inc. and including Blackmont Capital Inc., have a greenshoe for up to C$2 million. The greenshoe is exercisable until 48 hours before closing.

After showing a 2.76% gain on Monday, the company's shares lost C$0.08, or 5.37%, to close at C$1.41 on Tuesday (Toronto: SPM).

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