U.S. private placement volume falls, HeartSTAT to raise $5 million in offering

By Sheri Kasprzak

Atlanta, Nov. 18 - Private placement volume in the United State sagged Thursday on falling oil.

Oil prices dropped $0.62 Thursday to close at $46.22 per barrel.

"There's just not a lot of deals getting done out there today," said one sell-side source. "I've seen a few things here and there but they're not very big deals. Most of the things I've seen today have been under $1 million."

Canadian volume remained strong, however.

"We have seen pretty good volume today," said one Canadian source. "The resources markets are strong right now, so that's really pushing activity here."

Heading up private placement news in the United States, HeartSTAT Technology Inc. said it plans to raise $5 million through a convertible preferred stock deal.

Pricing details on the transaction are still being worked out, according to the company's investor relations department.

U.S. EURO Securities Inc. has been retained by the company for services related to the offering.

Los Angeles-based HeartSTAT is a Los Angeles-based company focused on marketing a system to monitor blood-flow perfusion and heart dynamics. The proceeds from the deal will be used to complete its final state research and diagnostics for its system.

The company's stock closed down $0.01 at $0.59 Thursday.

Details on Great Expectations deal

Great Expectations and Associates Inc. sold 117 units of 87,108 common shares and a warrant for $2.925 million through a previously announced private placement, details of which were announced Thursday.

On Nov. 12, the company priced the units at $25,000 each.

The warrants allow for the purchase of 87,108 shares at $0.40 for five years.

Great Expectations recently acquired Princeton, N.J.-based Advaxis Inc. The proceeds from the private placement will be used to fund development of Advaxis's Listeria-based therapeutic vaccine and a phase I clinical trial of Lovaxin C, a cancer vaccine.

Idaho General wraps $1.08 million deal

Idaho General Mines Inc. closed a $1.08 million private placement, the company said Thursday.

On Nov. 17, the company sold 2.7 million units of one share and one warrant for $0.40 per unit.

The warrants are good for an additional share at $0.80 for two years.

Based in Spokane, Wash., Idaho General Mines is a precious metals mining company. The company's stock closed unchanged at $0.80 Nov. 17, its last trade.

Canadian deals

Chartwell Technology Inc. led Canadian private placements Thursday with its C$10 million deal.

The company plans to sell 2,150,538 common shares at C$4.65 per share.

Clarus Securities Inc. will be underwriter in the deal.

The offering is expected to close Dec. 7.

Chartwell is a Vancouver, B.C.-based company that manufactures internet gaming software. The company will use the proceeds from the private placement for general corporate purposes.

On Thursday, the company's stock closed up C$0.25 at C$5.35.

Northern Sun's C$5 million deal

Northern Sun Exploration Co. Inc. is selling C$5 million in a private placement, the company said Thursday.

The offering includes four million non-flow-through units at C$0.50.and up to 5,454,546 flow-through units at C$0.55.

The non-flow-through units consist of one share and one warrant for an additional share at C$0.65 for one year and C$0.85 for the second year. The flow-through units consist of one flow-through common share and one warrant for C$0.65 for the first year and C$0.85 for the second.

PowerOne Capital Markets Ltd. is placement agent in the offering.

Based in Vancouver, B.C., Northern Sun is a petroleum and natural gas exploration company. It plans to use the proceeds from the offering to fund its exploration program on properties in Alberta. The company will also use some of the funds for general working capital.

On Thursday, the company's stock closed down C$0.03 at C$0.50.

Raven Energy to raise C$3.4 million

Raven Energy Ltd. will raise C$3.4 million in a private placement, the company said Thursday.

The offering consists of two million in flow-through common shares at C$1.70 per share.

Raven is an oil and gas exploration, development and production company based in Calgary, Alta. The company plans to use the proceeds from the offering for working capital.

On Thursday, the company's stock closed unchanged at C$1.40.

Diadem closes C$1.6 million deal

Diadem Resources Ltd. said it wrapped up a C$1.6 million non-brokered private placement.

The company sold 10,666,666 units of one flow-through common share and one half of one flow-through common share warrant at C$0.15 per unit.

The whole warrants allow for the purchase of an additional flow-through common share at C$0.20 per share for nine months.

"The price is a slight premium to the market, which closed at C$0.14 today on strong volume," said Diadem's chief financial officer Paul Carroll in an interview Thursday. "Flow-through shares should command some premium because of the tax expenditures that are flowed through, thus substantially reducing the actual cost of purchase."

The financing, Carroll said, was put together by financial advisor Crescent Financial Corp.

"A private placement, under securities laws, is a fairly efficient method of raising capital," Carroll said when asked why the company decided to conduct a private placement.

The deal is expected to close Dec. 22.

Toronto-based Diadem is a diamond, gold and silver exploration company. The company plans to use the proceeds to fund exploration expenditures and will be directed primarily toward the company's Franklin diamond project.

Diadem's stock closed up C$0.02 at C$0.14 Thursday.

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