San Gold plans C$25 million stock sale; Bayswatter seeks acquisition funds; Allon secures SEDA

By Stephanie N. Rotondo

Portland, Ore., March 3 - Canadian issuers took over the PIPEs market on Wednesday, and some of them were rather large-sized deals.

San Gold Corp. brought a C$25 million private placement of flow-through shares to market. The deal was underwritten.

Bayswater Uranium Corp. meantime announced two financings, the proceeds of which will be used to fund a planned acquisition. In the first deal, the company is seeking C$4.5 million from a private placement of units. Additionally, the company will raise $20 million in a separate placement of units.

Elsewhere, Allon Therapeutics Inc. said it had secured a C$10 million standby equity distribution agreement with a fund managed by Yorkville Advisors Inc.

And, SinoHub Inc. raised nearly $5 million from a private placement of equity. The company noted that the deal announced Feb. 24 had been lifted prior to closing.

Kiska Metals Corp. wrapped the first tranche of its private placement of units. The company took in C$4.44 million.

Also, Fibrocell Science Inc. intends to raise $3.81 million via a private placement of equity.

San Gold plans stock sale

San Gold is seeking more than C$25 million from a private placement of flow-through stock, according to a press release.

The company will sell 6.18 million shares at C$4.05 per share on a bought-deal basis.

Proceeds will be used for exploration and development activities at the company's Rice Lake camp. Settlement is expected by March 26.

Calls seeking further comment were not returned Wednesday.

San Gold's stock (TSX Venture: SGR) fell 5 cents, or 1.40%, to C$3.51. Market capitalization is C$928 million.

San Gold is a Bissett, Manitoba-based gold exploration company.

Bayswater seeks acquisition funds

Bayswater Uranium, a Vancouver, B.C.-based uranium exploration company, announced two deals associated with its acquisition of the Reno Creek Property.

First, the company arranged a C$4.5 million private placement of units with M Partners. Bayswater will sell approximately 8.18 million units at C$0.55 each. The units will consist of one common share and one half-share warrant.

Whole warrants are exercisable at C$0.75 for two years. The deal also includes an over-allotment option for up to 1.23 million units.

Second, Bayswater inked a term sheet agreement with Pacific Road Resources Funds for a $20 million private placement of units.

Under the terms of the deal, the funds will come in two tranches, with $3 million coming in the first portion.

The remaining funds will come in the second tranche. That investment will be made into a "special purpose entity," according to a press release. The new entity will actually own the Reno Creek property, with Pacific Road owning a 65.4% interest and Bayswater owning the remaining 34.6%.

"This is a financing that is being completed in a very difficult uranium market," said John Gomez, manager of investor relations for Bayswater.

"There's not many companies in our sector that can raise this kind of money," he said.

Gomez also noted that, in talking with a few existing investors, the response to the deal was very positive.

"Our shares are up so obviously the market right now is happy with the deal," Gomez remarked.

Additionally, investors had not expressed any dilution concerns, which Gomez attributed to the company's "very tight share structure."

Bayswater's equity (TSX Venture: BYU) gained 7 cents, or 12.73%, to C$0.62. Market capitalization is C$9.57 million.

Allon secures SEDA

Allon Therapeutics inked a C$10 million standby equity distribution agreement with YA Global master SPV Ltd., the company said in a press release.

According to the terms of the three-year agreement, YA will purchase Allon common shares at a 5% discount to the five-day weighted-average price at the time of the drawdown.

"Allon's corporate finance team has done an excellent job managing our resources," said Gordon McCauley, president and chief executive officer, in the release. "Consequently, we already have sufficient cash on hand to execute our business plan into 2011. With a number of important value milestones in the near term, the addition of this instrument allows us to continue our focus on execution."

"We are enthusiastic about our investment in Allon Therapeutics and believe the development of therapeutic treatments for neurodegenerative diseases like Alzheimer's and dementia is entering a very exciting and critical phase," added Michael J. Nowak, managing director at Yorkville Advisors, which manages the YA Global fund.

Allon's shares (Toronto: NPC) improved by 3½ cents, or 10.45%, to C$0.37. Market capitalization is C$28.9 million.

Allon Therapeutics is a Vancouver, B.C.-based developer of drugs used to protect against neurodegenerative diseases like Alzheimer's disease, stroke, traumatic brain injury, multiple sclerosis and neuropathy.

SinoHUb wraps oversubscribed deal

SinoHub raised $4.9 million from a private placement of equity, according to a regulatory filing and subsequent press release.

The deal originally priced at $4.1 million on Feb. 24. The deal settled March 2.

The Los Angeles-based holding company issued approximately 1.63 million common shares at $3.00 per share. Investors also received a half-share warrant per each common share purchased. Each whole warrant is exercisable at $3.25.

SinoHub's stock (Amex: SIHI) increased 3 cents, or 0.97%, to $3.13. Market capitalization is $78.1 million.

Kiska settles first tranche

Kiska Metals wrapped the first tranche of its previously announced private placement of units, taking in C$4.44 million.

The non-brokered deal originally priced at C$5.94 million on Feb. 22.

Kiska is selling a total of 9 million units at C$0.66 each. In the first tranche, 6.72 million units were issued.

The units contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.92 for one year.

Proceeds will be used for work at the Whistler Project in Alaska, as well as for general corporate purposes.

Calls seeking further comment were not returned Wednesday.

Kiska's shares (TSX Venture: KSK) firmed by 3 cents, or 4.11%, to C$0.76. Market capitalization is C$43 million.

Kiska Metals is a Toronto-based mineral exploration company.

Fibrocell to issue stock

Fibrocell Science is planning a $3.81 million private placement of common stock.

The company will issue approximately 5.07 million shares at $0.75 each.

And, investors will receive warrants for the same number of shares. The warrants are exercisable at $0.98 for five years.

An e-mail to the company seeking comment was not returned Wednesday.

Fibrocell's equity (OTCBB: FCSC) gained 8 cents, or 8.42%, to $1.03. Market capitalization is $13.6 million.

Fibrocell Science is an Exton, Pa.-based biotechnology company focused on the development of regenerative cell therapy for aesthetic, medical and scientific applications.

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