Power3 eyes longer-term funds after $1.85 million sale; AuEx offers units; Hague sells convertibles

By Kenneth Lim

Boston, Nov. 11 - Power3 Medical Products, Inc. took in $1.85 million from a sale of convertible promissory notes but hopes to raise more soon as it develops its product pipeline.

AuEx Ventures, Inc. is raising C$4.4 million through a sale of stock and warrant units to raise funds for exploration.

Meanwhile, Hague Corp. placed $1.5 million of 8% convertible debentures through a private placement to three parties on Nov. 4 as part of a merger and reorganization.

Power3 sells convertibles

Power3 Medical Products received $1.85 million from a private placement of 12% unsecured convertible promissory notes due Nov. 4, 2009 as it seeks longer-term financing.

The notes have an initial conversion price of $0.03 per share. Power3 common stock (OTCBB: PWRM) settled at $0.02 on Tuesday, lower by 4.76% or $0.001.

The three investors in the fundraiser also received warrants for about 57.06 million common shares. The warrants are exercisable at $0.04 for three years.

Power3 president, chief scientific officer and chairman Ira L. Goldknopf took the bulk of the placement with a note worth about $1.19 million and warrants for about 36.6 million shares.

Power3 Medical Products is a Houston-based proteomics company that develops protein biomarkers, drug targets and diagnostic tests.

The company needs to find additional funding to continue operations, Power3 said in a statement. The company is seeking between $3 million and $5 million in new financing in the fourth quarter of 2008 or the first quarter of 2009. Power3 believes that $3 million is the minimum amount that it needs to repay existing obligations and to continue funding its new business strategy for at least 12 months.

"Our company is really focused on its product development, and we're not so much focused on market conditions as we are in raising sufficient funds to continue our clinical validation trials for our blood tests," Goldknopf told Prospect News. "Those are things that we're really focused on.

"We have raised some interim financing, and we are seeking larger financing to last us into the next two to three years."

The company currently has a number of products that are completing phase 1 trials and are expected to enter into phase 2 testing, so the company will continue to require capital for a while. But Goldknopf said the products already have a good track record and he was confident about the technology.

"We are very excited about the results," he said of the Alzheimer's disease trial results, which the company will be presenting in spring of 2009.

Acknowledging that finding capital can be tough in the current markets, Goldknopf nevertheless stressed the importance of the research being done at Power3.

"We're not about to quit," he said. "We know the stuff is needed. It's difficult, but it's also difficult for these patients ... This is very important to us, and quite frankly, I've been in this field for a long time, and I think that people will see, those who are discerning, will see the importance of these."

AuEx to sell units

AuEx plans to sell up to C$4.4 million of stock and warrant units through a private placement.

The company is offering between 3 million and 4 million units of one common share and one half-share warrant at C$1.10 per unit. The whole two-year warrants are exercisable at C$1.38 in the first year and at C$1.65 thereafter.

AuEx common stock (TSX: XAU) closed at C$1.06 on Tuesday, down by 7.02% or C$0.08.

The warrants may expire sooner if the company's shares close at C$2.06 or higher for 20 consecutive trading days in the first year or at C$2.48 or higher for 20 consecutive trading days in the second year.

Proceeds will be used to fund the company's participating interest in the Long Canyon Venture, maintenance and exploration of existing projects and general working capital purposes.

Based in Vancouver, B.C., AuEx is a precious metals exploration company.

Hague raises $1.5 million

Hague Corp. said it placed $1.5 million of 8% convertible secured debentures due Nov. 4, 2011 to three parties.

The debentures have an initial conversion price of $0.2667. Hague common stock (OTCBB: HGUE) fell 26.09%, or $0.18, to close at $0.51 on Tuesday.

Investors also received about 3.53 million common shares.

The investors were MKM Opportunity Master Fund, Ltd., Steven Posner Irrevocable Trust and MKM SP1, LLC.

The resource exploration company is based in Scottsdale, Ariz.

As part of the deal, MKM Opportunity Master Fund will appoint two members to the board of Hague.

The placement took place as Hague completed a merger and reorganization with Solterra Renewable Technologies, Inc. The merger resulted in Stephen Squires, the new president and chief executive of Hague, becoming the new controlling shareholder of the company.

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