Arena Resources secures $100.45 million; Payment Data Systems gets equity line

By Sheri Kasprzak

New York, June 15 - Arena Resources, Inc. led PIPE action on Friday as oil prices rebounded to round out the week.

The oil company secured $100.45 million from a registered direct placement of its stock.

Some institutional investors have agreed to buy 2.05 million shares under the company's shelf registration for $49.00 each.

Dahlman Rose & Co, LLC was the bookrunner for the offering.

The deal is expected to close on June 20.

The offering comes on the heels of news that Arena plans to build a natural gas pipeline with Aspen Pipeline, Inc. The project is expected to cost Arena $45 million over the next four years.

Arena last accessed the PIPE market in May 2006 when the company sold 1.15 million shares for $32.246 million.

On Friday, the company's stock gained $2.58, or 5.09%, to close at $53.25 (NYSE: ARD). In after-hours trading, the stock gave up more than 20 cents.

Based in Tulsa, Okla., Arena is an oil and natural gas exploration company.

In the broader market, oil prices rebounded on Friday, gaining 35 cents to end the session at $68.00 per barrel.

Looking to the week ahead, one sellside market source said technology and biotech offerings are in the works.

"This really should surprise no one," he said. "Those are really the big PIPE-issuing sectors anyway. I do think that volume will increase next week once we move further out of earnings season."

Payment Data's equity line

In other PIPE news on Friday, Payment Data Systems, Inc. penned a $10 million equity line agreement with Dutchess Private Equity Fund, Ltd.

The five-year agreement allows Dutchess to buy shares of Payment Data at 95% of the lowest closing bid price for the five consecutive trading days after notice of a draw.

The company's stock fell by four-tenths of a cent on Friday, or 5.2%, to close at $0.082 (OTCBB: PYDS).

Located in San Antonio, Payment Data Systems provides electronic payment services to businesses.

MedicalCV raises $4.5 million

In the biotech sector, MedicalCV, Inc. sealed a $4.5 million placement of senior secured debt with warrants.

The company issued 11% notes with a three-year term to a group of investors that includes Whitebox Advisors, LLC.

Whitebox bought $2 million of the notes as part of an option the investor received from its $10 million purchase of 11% senior secured notes in late April.

Those notes have the same terms as the notes issued Friday by MedicalCV.

The notes include five-year warrants for a number of shares equal to 60% of the principal amount invested divided by $4.00. The warrants are exercisable at $4.00 each.

The notes may be prepaid at an 8% premium in the first year, a 6% premium in the second year and a 3% premium in the third year.

The company, connected to the offering, agreed to not issue any additional 11% debt.

Proceeds will be used for working capital.

The company's stock remained unmoved at $5.35 Friday (OTCBB: MCVI).

Based in Inver Grove Heights, Minn., MedicalCV develops technologies for cardiac tissue ablation used in open-heart surgery.

BioSante stock drops

In other biotech news, BioSante Pharmaceuticals, Inc.'s stock fell on Friday, a day after the company sealed an $18,392,994 private placement of stock.

The stock fell 1.89%, or 13 cents, to settle at $6.75 (Amex: BPA).

On Thursday, the company's stock gained 3 cents to end at $6.88.

In the placement, the company sold shares at $6.00 each.

The placement priced in May for $16,529,994.

Rodman & Renshaw, LLC was the lead agent.

Proceeds will be used to expand the company's phase 3 clinical program for its LibiGel product.

Lincolnshire, Ill.-based BioSante develops hormone therapies.

Jite prices C$10 million

Moving north of the border, Jite Technologies Inc. negotiated the terms of a C$10 million private placement.

The company intends to sell 22,222,222 units at C$0.45 each.

The units are comprised of one share and one half-share warrant. Each full warrant is exercisable at C$0.65 for two years.

The deal closed on Friday.

Research Capital Corp. is the lead agent.

Proceeds will be used for the expansion of the company's manufacturing capacity and for general corporate purposes.

The company's stock gained 2 cents, or 3.85%, to close at C$0.54 (TSX Venture: JTI).

Based in Richmond Hill, Ont., Jite designs and manufactures electronic and electronic connection devices for the security, industrial control, automation, telecommunications and power-supply sectors.

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