Crosstex Energy raises $100 million from private placement; Crowflight plans C$20 million sale

By Laura Lutz

Des Moines, March 26 - Crosstex Energy, LP led PIPEs news on Monday with a private placement for about $100 million.

The placement included about 3.9 million senior subordinated series D units. The series D units will convert to common units on March 23, 2009.

The placement was led by Lehman Brothers MLP Opportunity Fund LP and included ING Investment Management, LLC; Citigroup Global Markets Inc.; funds managed by Tortoise Capital Advisors, LLC; and Fiduciary Asset Management, LLC.

The Dallas-based natural gas company will use the proceeds to repay indebtedness.

"We believe that the issuance of the senior subordinated series D units, along with our existing credit facilities, will provide the capital we need to fund our existing announced projects while maintaining a conservative capital structure," president and chief executive officer Barry E. Davis said in a news release.

"We are grateful that we have received this strong support from the investment community."

Its stock gained $0.59, or 1.7%, to close at $35.24 on Monday (Nasdaq: XTEX).

In Canadian news, Crowflight Minerals Inc. priced a C$20 million private placement of units and flow-through shares.

The placement is expected to include 12.5 million units at C$0.80 each and 10 million flow-through shares at C$1.00 each.

The units will each consist of one share and one half-share warrant with each whole warrant exercisable at C$1.15 for one year.

A syndicate led by Orion Securities Inc. and including Canaccord Adams Inc., Sprott Securities Inc. and Pacific International Securities Inc. will be the underwriters.

The deal is expected to settle on April 12.

The Toronto-based company will use the proceeds for exploration.

Its shares closed up 3 cents, or 3.75%, at C$0.83 on Monday (TSX Venture: CML).

Soho ups deal to C$10 million

As has recently been the case, several other Canadian resource companies announced smaller private placements.

Among them, Toronto-based Soho Resources Corp. upsized its previously announced offering to C$10 million from C$8 million.

The company plans to sell 20 million units of one share and one half-share warrant at C$0.50 each. Each whole warrant will be exercisable at C$0.70 for two years.

That placement was first announced on March 23, but pricing had not previously been set.

A syndicate led by Sprott Securities Inc. and including Westwind Partners Inc. will act as agents.

The company intends to use the proceeds for exploration, development and general corporate purposes.

On Monday its shares dropped 5 cents, or 8.93%, to close at C$0.51 (TSX Venture: SOH).

Erdene to raise up to C$10 million

Erdene Gold Inc. also priced a C$10 million private placement.

The Halifax, N.S.-based mineral company intends to sell up to 10 million shares at C$1.00 each.

That deal will be underwritten by a syndicate led by National Bank Financial and including Wellington West Capital Markets Inc.

Proceeds will be used to advance the company's Zuun Mod molybdenum project and for general exploration and corporate purposes.

The company's shares closed down 10 cents, or 8.7%, at C$1.05 on Monday (Toronto: ERD).

Boston Life arranges $15 million convertible note deal

Moving back to the United States, almost all of the news was from technology companies of one kind or another.

Biopharmaceutical company Boston Life Sciences, Inc. negotiated a convertible promissory note purchase agreement for up to $15 million.

The company may make borrowings under the agreement until Dec. 31, 2007.

The investors are Robert L. Gipson, Thomas Gipson and Arthur Koenig.

The 5% notes will be due on Dec. 31, 2010.

At any time after Dec. 31, 2007, the holder may convert the notes into shares at $2.50 each or into the right to receive a payment related to the company's molecular imaging products. For each $1,000 principal amount of converted notes, that payment will be 2% of pre-commercial income plus a royalty equal to 0.5% of net sales of molecular imaging products.

The Hopkinton, Mass.-based company focuses on central nervous system disorders.

"We are pleased to obtain this new financing," Kenneth Rice, executive vice president and chief financial officer, said in a news release. "The $15 million loan will enable us to satisfy our obligations to BioAxone regarding our Cethrin program in the near term and to continue to support our operations well into this year as we pursue our other fundraising activities."

The company's stock rose 9 cents, or 3.63%, to close at $2.57 on Monday (Nasdaq: BLSI).

Avicena announces $3.5 million sale

Avicena Group, Inc., another American biotech company, priced its own convertible promissory note offering for up to $3.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The Biotechnology Ventures (III) Capital Trust will be the investor.

The 8% note will mature on March 31, 2009 or March 31, 2010. The maturity date will be selected by Biotechnology Ventures before the first advance on the note. The notes will be convertible into common stock at $5.00 per share.

The Palo Alto, Calif.-based company saw its stock lose 8 cents, or 1.37%, to close at $5.75 on Monday (OTCBB: AVGO).

LocatePLUS pockets $6 million

LocatePLUS Holdings Corp., which produces databases for law enforcement officials, arranged a $6 million private placement of secured convertible debentures.

Cornel Capital Partners LP is the investor.

The 8.5% notes mature in three years. They will be convertible at any time at $0.314 per share.

The offering also included warrants for 11,336,701 shares with exercise prices ranging from $0.01 to $0.50.

A $3 million tranche of that placement has already closed. Settlement of the remaining $3 million depends on milestones for a registration statement that the company expects to file.

LocatePLUS is based in Beverly, Mass. Its stock closed unchanged at $0.25 on Monday (OTCBB: LPHC).

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