Endeavour offers convertibles for mine expansion; ReGen, Axion complete deals; JER plans units sale

By Kenneth Lim

Boston, Jan. 22 - Endeavour Silver Corp. plans to raise C$8 million through a convertible placement to finance a proposed mine expansion program.

ReGen Biologics, Inc. sold $7.05 million of its common stock through a private offering and could raise a further $3 million as it prepares for a product launch.

Axion International Holdings, Inc. took in $1.38 million through a stock placement to a single investor.

JER Envirotech International Corp. plans to raise C$1.01 million of working capital through a placement of stock and warrant units.

Endeavor offers convertibles

Endeavour Silver will offer C$8 million of 10% subordinated unsecured convertible redeemable debentures due February 2014 in a private placement.

The company will sell up to 8,000 debentures at C$1,000 apiece with an additional C$4 million over-allotment option of 4,000 debentures.

The notes have an initial conversion price of C$1.90 per unit. Each unit will comprise about 526 common shares and 263 warrants. Each warrant is exercisable at C$2.05 for five years.

Endeavour common stock (TSX: EDR) slipped 2.53% or C$0.04 to close at C$1.54 on Thursday. Endeavour's market capitalization is C$75.5 million.

Proceeds will be used will be used to acquire mining equipment, develop underground access to mineralized zones and upgrade certain plant circuits at the company's Guanacevi and Guanajuato mines in Mexico and for general corporate purposes.

Based in Vancouver, B.C., Endeavour is a silver exploration company.

"Now that the market sentiment for precious metals is starting to turn positive once again, we felt it important to raise the financing needed for Endeavour's proposed mine expansion program in Mexico this year," Endeavour chairman and chief executive Bradford Cooke said in a statement. "This private placement financing represents a win-win transaction for both Endeavour and for the investors. From Endeavour's point of view, it is an opportunity to place convertible redeemable unsecured debt with a conversion price at a healthy premium to the current share price. From the investors' point of view, they will get paid 10% per year and have the right to convert the debentures into units at a fixed price in Canadian dollars for five years."

ReGen raises $7.05 million

ReGen Biologics sold $7.05 million of its common stock through a private placement.

The offering involved about 2.02 million shares at $3.50 apiece. Investors also received warrants for 15% of the shares purchased. Each warrant is exercisable at $1.20 for five years.

ReGen common stock (OTCBB: RGBO) closed at $3.45 on Thursday, unchanged from the previous session. The company's market capitalization is $18 million.

The company plans to raise an additional $3 million through another stock placement.

Proceeds will be used to support the launch of ReGen's Menaflex collagen implant for orthopedic treatments.

ReGen, based in Franklin Lakes, N.J., develops orthopedic products.

The lead investor in the placement was Sanderling Venture Partners, which bought about $4 million of the shares offered.

"We are delighted with the success of this first stage of the financing," ReGen chairman and chief executive Gerald E. Bisbee, Jr. said in a statement. "Sanderling Venture Partners has been a long-standing source of leadership and support to ReGen and an enthusiastic proponent for the importance of biological technology and the company's Menaflex product."

"The purpose of this financing is to provide sufficient capital for the launch of the Menaflex product in the U.S., which currently represents the largest single world market for similar arthroscopic surgery products," Bisbee added. "We are excited to bring this groundbreaking product to U.S. surgeons and patients in support of improving the standard of care for meniscus treatment."

Axion taps Insight Partners

Axion International raised $1.38 million through a private placement of stock to Insight Partners, LLC.

The company sold about 1.56 million common shares at $0.88 apiece. Up to 2.5 million shares were offered on a best-efforts basis at that price.

Axion common stock (OTCBB: AXIH) fell 10.89% or $0.11 to close at $0.90 on Thursday. The company has a market capitalization of $12.6 million.

Axion is a Baking Ridge, N.J.-based independent oil and gas company.

JER to sell units

JER Envirotech plans to place C$1.01 million of stock and warrant units through a private deal.

The placement comprises 13.5 million units of one common share and one half-share warrant at C$0.075 per unit. Each whole warrant is exercisable at C$0.15 for 18 months.

JER common stock (TSX: JER) closed unchanged at C$0.065 on Thursday. The company has a market capitalization of C$2.5 million.

Proceeds will be used for general working capital.

Based in Vancouver, B.C., JER is a manufacturer of wood-plastic composite compounds and panel boards.

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