ARYx gets new equity facility; Vyke inks credit agreement; Rainy River seeks C$8 million

By Stephanie N. Rotondo

Portland, Ore., Oct. 7 - ARYx Therapeutics Inc. brought one of Wednesday's largest deals to market, a $35 million equity facility with a small cap investment fund.

Vyke Communications plc also inked a financing agreement, securing a £10 million line of credit with GEM Global Yield Fund Ltd. Both companies will sell common shares at a pre-negotiated price.

Meanwhile, Rainy River Resource Ltd. announced a more than C$8 million private placement of shares. The funds will be used for exploration.

Hawthorne Gold Corp. amended the terms of a private placement announced in late September. Under the new terms, the company will sell units cheaper and warrants that are exercisable at a lower rate.

In settled transactions, Waste2Energy Holdings Inc. said it took in nearly $3 million from a private placement of convertible debentures on Oct. 1.

ARYx secures equity facility

ARYx Therapeutics, a Fremont, Calif.-based biopharmaceutical company, said it arranged a $35 million two-year committed equity financing facility with Commerce Court Small Cap Value Fund Ltd.

Under the agreement, the company can sell common shares to the fund at a pre-negotiated price based on a agreed upon formula. However, ARYx is not required to draw down the facility and is free to look at other financing options.

"This equity line provides us the continued assurance that ARYx will be able to complete the licensing of our products with the right partners on the most favorable terms," said Paul Goddard, chairman and chief executive officer of ARYx, in a statement.

ARYx's equity (Nasdaq: ARYX) fell 3 cents, or 0.96%, to $3.10. Market capitalization is $86.2 million.

Vyke inks credit agreement

Vyke Communications secured a £10 million line of credit with GEM Global Yield Fund Ltd., according to a press release.

The company can draw on the line for three years. Upon drawdown, Vyke will issue ordinary shares to the fund at a 10% discount to the average closing price over a 15-day period prior to the draw request.

Vyke is not obligated to use the credit line.

"We are delighted to have this agreement with GEM which shows their commitment to the future of the company," said Tommy Jensen, executive chairman, in the release.

Vyke's shares (London: VYKE) closed at 11.12p.

Vyke Communications is a London-based voice-over-internet protocol service provider.

Rainy River aims for C$8 million

Rainy River Resources will conduct an C$8.01 million private placement of flow-through shares, the company announced.

Rainy River will sell 2.84 million of the shares at C$2.82 per share on a best-efforts basis.

Proceeds will be used for exploration. Settlement is expected by Oct. 28.

The company did not return calls seeking comment Wednesday.

Rainy's stock (TSX Venture: RR) declined 5 cents, or 2.17%, to C$2.25. Market capitalization is C$130 million.

Rainy River Resources is a Vancouver, B.C.-based metals exploration company.

Hawthorne amends financing

Hawthorne Gold said it amended the terms of its C$4.5 million private placement of stock and units.

The deal originally priced Sept. 25.

Hawthorne will sell up to 3.71 million flow-through shares at C$0.54 each for proceeds up to C$2 million.

That portion of the financing also includes an over-allotment option for up to 1.84 million additional flow-through shares.

Also, the company will sell units in a non-brokered deal to raise the remaining C$2.5 million. Hawthorne changed the price per unit to C$0.40 from C$0.45. The units will consist of one common share and one-half share warrant.

The company also decreased the strike price of the warrants at C$0.50 from C$0.55.

Proceeds from both transactions will be used for continued development of the Cassiar Gold Mine and the Taurus gold deposit, as well as for general corporate purposes. Settlement is expected by Oct. 15.

The company was unavailable for comment on Wednesday.

Hawthorne's shares (TSX Venture: HGC) lost more than 4 cents, or 10.47%, to C$0.385 on Wednesday. Market capitalization is C$30.4 million.

Hawthorne Gold is a Vancouver, B.C.-based gold exploration and development company.

Waste2Energy seals nearly $3 million

In the day's completed placement, Waste2Energy Holdings announced it pocketed $2.92 million from a private placement of senior convertible debentures on Oct. 1.

The 12% convertible notes mature Oct. 1, 2010 and are convertible into common shares at $1.00 per share, according to a regulatory filing.

Investors also received warrants equal to 2.91 million additional shares. The warrants are exercisable at $2.00 until Oct. 1, 2012.

Waste2Energy's equity (OTCBB: WTEZE) ended unchanged at $1.06. Market capitalization is $50.9 million.

Waste2 Energy Holdings is a New York-based company that converts solid waste to energy.

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