Dynamotive wraps $10.5 million equity financing; QGX closes C$3 million tranche; Longford sells C$2.2 million

By LLuvia Mares

New York, Oct. 9 - Business picked up in the PIPEs market Tuesday after a slow start on Monday, and a market source said he expects an increase in deal announcements this week.

Dynamotive Energy Systems Corp. made lead news in the PIPEs sector with its $10.5 million equity financing made up of stock and warrants.

The company sold a total of 11.4 million shares at $0.9215 per share, with Quercus Trust investing $10 million and other private investors taking down $500,000.

The investors were also issued warrants to purchase up to 4.56 million shares at $1.06 per share. The warrants expire in five years and carry three year anti-dilution rights.

The company's stock (OTCBB: DYMTF) closed at $0.99 on Tuesday, up $0.03 from Monday's $0.97 close.

"Proceeds will be used for working capital and general corporate purposes," Brian Richardson, company chief financial executive, told Prospect News. "It will also provide us the capital to complete two projects that are underway and also allows us start-up investments into other new projects we are developing."

Vancouver, B.C.-based Dynamotive is an energy solutions specialist and provides carbon/greenhouse-gas-neutral pyrolysis technology.

QGX closes on C$3 million

QGX Ltd. confirmed the oil and mining markets are booming this season after completing a C$3 million tranche of a C$20.75 million private placement of shares.

The company sold 722,892 common shares at C$4.15 apiece to JUST Group Industries. It will sell a total of 5 million shares at that price.

The company's stock (Toronto: QGX) closed at C$3.5670, up from C$0.4161from Monday's close of C$3.151.

JUST Group has an extension until Oct. 25 to complete the remaining balance of the deal.

Proceeds will be used for development.

QGX is a mineral exploration company based in Waterdown, Ont.

Longford wraps C$2.2 million

Longford Corp. announced it has a closed a C$2.2 million private placement of convertible debentures.

The two-year debentures will have a 12% coupon, calculated and paid semi-annually. Any principal or interest outstanding under the debentures will be secured against the company's general assets. The note may be repaid at the company's option without penalties.

Aberdeen International Inc. has bought C$750,000 in debentures and Stan Bharti, a director of both Longford and Aberdeen, has indirectly bought C$200,000 in debentures.

Its stock (TSX Venture: LFD) closed at $0.06, up $0.01 from Tuesday's $0.05 close.

Longford is a Toronto-based oil and gas exploration company.

Alto plans C$2.2 million

Alto Ventures Ltd. announced it plans a non-brokered private placement of units and shares to raise up to C$2.2 million.

The company will sell up to 6,363,636 units at C$0.11 apiece and 11,538,462 flow-through shares at C$0.13 per share. Each non-flow through unit will consist of one common share and one warrant. Each warrant is exercisable at C$0.20 for one year.

The warrants expire sooner if the company's shares have an average closing price of C$0.30 or more for 20 consecutive trading days. In that case, holders will be given 30-days' notice to exercise the warrants before the warrants expire.

Alto Ventures stock (TSX Venture: ATV) closed Tuesday at C$18.86, up C$0.31 from C$18.55 Monday.

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

Based in Vancouver, B.C., Alto Ventures is a gold exploration and development company.

Genitope negotiates $2,025,000 sale

In the pharmaceutical sector, Genitope Corp. led news with its plan to raise $2,025,000 through a common stock purchase agreement with an accredited investor.

The company will issue 500,000 shares of stock to William R. Hambrecht, trustee of the Hambrecht 1980 Revocable Trust at $4.05 per share. No warrants were attached to the transaction.

The direct placement priced Friday and closed Monday.

Proceeds will be used for general corporate purposes and for research and development on the company's monoclonal antibody product candidates and of MyVax for other types of cancer.

Fremont, Calif.-based Genitope is a biotechnology company specializing on the research and development of novel immunotherapies for the treatment of cancer.

Osiris Therapeutics completes $30 million financing from Friedli

Osiris Therapeutics, Inc. arranged a $30 million financing agreement with Friedli Corporate Finance, Inc.

"This transaction, along with our current cash position and existing financing vehicles, gives us greater flexibility as we advance our phase 3 clinical programs towards market launch," said Cary Claiborne, company chief financial officer, in a press release. "The structure and terms of this financing vehicle are indicative of the tremendous confidence placed in Osiris by the company's chairman. We thank Peter Friedli for his continued support."

The financing agreement has a one-year term. Osiris may choose the timing and amount of draws under the facility.

The financing will take the form of either an issue of common stock at market price or three-year notes at Libor plus 400 bps, at Friedli's discretion.

The number of shares issued under the deal may not exceed 10% of Osiris's outstanding share total as of Oct. 5. If shares are issued, they will be priced at the average closing bid price over the 10 trading days before funding.

If notes are issued, they will pay interest semi-annually.

The company's stock (Nasdaq: OSIR) closed at $13.49, up $0.73 from $12.76 on Oct. 8.

Proceeds will be used for clinical trials and other general corporate purposes.

Based in Columbia, Md., Osiris focuses on stem-cell therapeutics.

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