General Moly seeks $80 million; Glen Rose seals convertible deal; YM Biosciences to sell units

By Devika Patel

Knoxville, Tenn., March 5 - General Moly, Inc. plans to raise $80 million by selling common stock in two tranches to Hanlong (USA) Mining Investment, Inc., which will result in the investor owning 25% of the company's shares.

The issuer's shares jumped 53.46%, or $1.39, after the deal was announced Friday, closing the week at $3.99.

The exploration and mining company led the PIPEs market with the $80 million deal on a day that saw many placements pricing or selling for a few million dollars.

Fellow mining company Glen Rose Petroleum Corp., for example, said it completed a $3.35 million placement of convertible notes with Iroquois Capital Opportunity Fund, LP. The company will use the proceeds to purchase a 12.5% working interest in the non-producing portions of its leases in the Wardlaw Field in Texas. Company shares (Nasdaq: GLRP) soared 182.35% Friday, or 46.5 cents, closing at $0.72.

Among the day's larger issues was YM Biosciences Inc.'s $15 million registered direct offering of units, which the company plans to close by March 10. The company's shares (Amex: PKT) dropped 16.43% on Friday, or 23 cents, closing at C$1.17.

Interleukin Genetics Inc., another health care company, will also sell units in a registered direct offering for up to $5.25 million. Company shares (Amex: PKT) fell 30.66% on Friday, or 46 cents, closing at $1.04.

Tradeshow Marketing Co., Ltd. said it sold $1.2 million of its common shares in a private placement Friday. The company will use the proceeds to launch additional products in 2010.

General Moly: $80 million

General Moly negotiated an $80 million private placement of common stock Friday, in which it plans to sell shares to Hanlong (USA) Mining Investment, a subsidiary of Sichuan Hanlong Group (Hanlong). The deal is expected to provide funding for the company's Mt. Hope project.

The company will sell about 11.895 million shares at an average price of $3.36 apiece to Hanlong (USA) Mining Investment in the first tranche and approximately 15.86 additional shares at approximately $2.52 per share in second tranche. Both tranches will be for $40 million.

"This transaction with Hanlong provides superior value to our stockholders than alternative transactions we have recently evaluated," chief executive officer Bruce D. Hansen said in a press release. "We believe this transaction positions General Moly to reach its strategic goal of being the world's largest publicly listed pure-play moly producer with ultimate targeted production of approximately 50 million pounds per year."

Added president Hui Xiao of Hanlong: "We feel their Mt. Hope and Liberty projects are two of the most promising moly assets worldwide. Our investments in General Moly and Moly Mines position Hanlong to be a significant participant in the future of the molybdenum industry, which we find very attractive."

Based in Lakewood, Colo., General Moly is a molybdenum mineral development, exploration and mining company.

Glen Rose sells $3.35 million

Natural gas and crude oil producer Glen Rose Petroleum sold $3.35 million of its two-year 8% secured convertible notes to Iroquois Capital Opportunity.

The notes are convertible into common stock at $0.30 per share with the company having the right to force conversion under some circumstances. The investors also received 11,666,667 warrants, which are exercisable at $0.60 for five years.

"The investment led by ICO brings to Glen Rose so much more than just the finance to develop the Wardlaw Field," the company's president and chairman Andrew Taylor-Kimmins said in a release. "ICO provides Glen Rose with a highly sophisticated financial partner with a depth of oil and gas development knowledge and experience."

The company is based in Dallas.

YM negotiates $15 million

Mississauga, Ont.'s YM Biosciences will sell about $15 million of its units at $1.20 apiece. The units consist of one common share and a half-share warrant, with the whole warrants exercisable at $1.60 for five years.

Roth Capital Partners, LLC is the lead agent. Bloom Burton & Co. Inc., Griffin Securities, Inc. and Haywood Securities Inc. are co-placement agents.

Proceeds will be used for drug development activities and general corporate purposes.

Interleukin: $5.25 million

Waltham, Mass., biotechnology firm Interleukin Genetics plans to raise $5.25 million in a registered direct offering of units via agent Rodman & Renshaw, LLC.

The company will sell 4,375,002 units of one common share and 0.40 of a warrant at $1.20 per unit. The whole warrants are each exercisable at $1.30 for five years.

The deal is expected to settle March 10.

Tradeshow wraps $1.2 million

Tradeshow Marketing concluded a $1.2 million non-brokered private placement of common stock, in which it sold 1,100,918 shares at C$1.09 per share.

Proceeds will be used to launch additional products in 2010 on Direct Response Television, expand the company's trade show operations and for general operating expenses and working capital.

"We are pleased to complete this private placement, which will assist in funding our long-term growth plans and the continued expansion of our business," president and chief executive officer Luniel de Beer stated. "This additional capital will not only accelerate our ability to execute on our product initiatives for DRTV, but will also enable us to create additional streams of revenue for the company by expanding our trade show operations.

"Also notable, we were able to complete this transaction under a very favorable structure for our shareholders, resulting in less than 5% dilution," de Beer added. "This new equity investment in our company is representative of the strong support in management and the confidence in our business model and long-term growth opportunities."

The Sammamish, Wash.-based product development and consumer specialty retail company's shares (Pink Sheets: TSHO) rose 8.97% Friday, or 7 cents, to close at $0.85.

© 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.