Adventrx seeks up to $19 million; La Cortez seals $2.5 million issue; Levon settles unit sale

By Stephanie N. Rotondo

Portland, Ore., Jan. 4 - The PIPEs market got 2010 off to a slow start Monday, as few new deals entered the marketplace. However, several deals were completed.

Adventrx Pharmaceuticals Inc. brought a new deal, a registered direct offering of up to $19 million. The company will sell convertible preferred shares to raise the funds, which will then be used to advance the company's various drug candidates.

Among settled financings, La Cortez Energy Inc. took in $2.5 million from a private placement of equity units, the company said in a regulatory filing. A company spokesperson said the funding would help the company "move its projects forward," including a planned acquisition.

Levon Resources Ltd. also completed a financing. The company raised C$2.33 million from a private unit sale.

And Nevado Venture Capital Corp. pocketed C$1.92 million in an oversubscribed private placement of units. The financing also brought in a new investor to the company.

Adventrx seeks up to $19 million

Adventrx Pharmaceuticals announced a $19 million direct placement of convertible preferred shares.

The San Diego-based company said it will sell between 15,676 and 19,000 of the series E convertible preferred shares at $1,000 per share. Investors will also receive warrants good for 12.46 million common shares, exercisable at $0.3499 for 30 months.

The preferreds are convertible into common stock at $0.38115 per share. The preferreds also carry a 3.73% cumulative dividend until Jan. 7, 2015.

Proceeds will be used to advance the launch of ANX-530, as well as to further development of ANX-514. Settlement is expected by Jan. 7.

"It will be a very important financing for us," said Brian Culley, principal executive officer. "It certainly is a great way to start the year."

Culley said that the deal takes advantage of Adventrx's recent run "sharply upwards." Just a few weeks ago, he said, the stock was trading around 10 cents and now is around the 40-cent mark. As such, the company "had a number of investment banks" calling to see if the company wanted to take advantage of those equity gains.

"I'd always like to do better than we do," he added regarding the terms of the transaction. However, Culley said he was appreciative of the investors who see Adventrx as an "attractive" investment.

Adventrx's equity (Amex: ANX) fell 7 cents, or 20.01%, to $0.2799. Market capitalization is $47.2 million.

La Cortez seals $2.5 million

La Cortez Energy took in $2.5 million from a private placement of equity units, according to a regulatory filing.

The deal settled Dec. 29.

La Cortez issued 1.42 million units at $1.75 per unit. The units contained one common share and one half-share warrant. Whole warrants are exercisable at $3.00 for three years.

"It's additional financing that the company needs," said Bruce Nurse, who handles public relations for the oil and gas company. "It definitely helps the company to move its projects forward."

In particular, Nurse said the financing would help the company purchase Avante Colombia S.a.r.l., a subsidiary of Avante Petroleum SA. He also noted that the parent Avante was considering investing in La Cortez once the acquisition is completed.

"In today's market, it is difficult to close," Nurse said. "But we have been successful in raising cash" over the last few years, taking in about $12 million over the course of about two years.

La Cortez's stock (OTCBB: LCTZ) dropped 3 cents, or 1.10%, to $2.70.

La Cortez Energy is a San Diego-based oil and gas company focused on South American properties.

Levon settles unit sale

Among other completed deals, Levon Resources wrapped a C$2.33 million private placement of units, according to a press release.

The deal originally priced at C$2 million on Dec. 18 and also included a C$500,000 greenshoe.

The Vancouver, B.C.-based company sold approximately 6.65 million units at C$0.35 per unit. Each unit consisted of one common share and one half-share warrant. Whole warrants are exercisable at C$0.55 for one year.

Proceeds will be used for exploration and development and for general working capital.

Levon's shares (TSX Venture: LVN) ended unchanged at C$0.43. Market capitalization is C$23.3 million.

Nevado issues A and B units

Nevado Venture also closed a private placement of units, raising C$1.92 million.

The non-brokered deal originally priced at C$1.5 million on Dec. 7.

The Calgary, Alta.-based company issued series A and B units, taking in C$1.75 million from the sale of the former and C$175,000 from the sale of the latter.

The A units were sold at C$800 each and contained 2,000 flow-through common shares, 500 common shares and 2,500 warrants. The warrants are exercisable at C$0.40 for one year and at C$0.50 for another year.

The B units were sold at C$250 each and consisted of 1,000 common shares and 1,000 warrants. The warrants are exercisable at C$0.40 for one year.

The MineralsFields Group purchased C$1.25 million of the A units.

"We are very pleased to be entering into this relationship with the MineralFields Group," said Guy Girard, president and chief executive officer, in a press release. "This is an important milestone in the growth of Nevado Venture Capital Corp. and we look forward to working with the MineralFields Group as we develop our holdings in the Thetford Mines and Baie-Comeau regions."

Nevado's equity (TSX Venture: VDO) gained 10 cents, or 34.48%, to C$0.39. Market capitalization is C$2.15 million.

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