Unigene completes notes sale; Lipoxen raises £2.9 million; Stornoway takes in C$1.43 million

By Stephanie N. Rotondo

Portland, Ore., May 29 - After a week flooded with private placement deals, the market slowed a tad on Friday, though several companies announced completed deals.

Unigene Laboratories Inc. said it completed a $20 million notes sale with the closing of is second tranche. The tranche raised $5 million.

Meanwhile, Lipoxen plc sold stock to raise £2.9 million. Proceeds will be used to help fund the company's clinical trials.

In the mining arena, Stornoway Diamond Corp. said it took in C$1.43 million in a placement of flow-through shares. The deal also included a greenshoe, which was not exercised.

Of the new deals coming to market, Trans-Siberian Gold plc said it arranged a $25 million convertible loan. Up to $3 million has already been committed by one investor, assuming the company can raise the remainder through other sources.

49 North Resource Fund Inc. is planning to sell C$15 million equity units, the company said. The company's top executive has committed to 25% of the placement.

Unigene completes notes deal

Unigene Labs, a Fairfield, N.J.-based biopharmaceutical company, said it wrapped a $20 million notes sale with a $5 million drawdown on May 22, according to a regulatory filing.

Under the terms of the deal priced Sept. 30, the company sold three-year non-convertible senior secured term notes. The company also issued approximately 1.5 million common shares.

The notes carry an interest rate of Prime plus 7% and are subject to a floor of 14% per annum and a cap of 18% per annum.

One investor, a party managed by Victory Park Capital Advisors LLC, participated in the placement.

"We believe that this is an opportune time to draw down the remaining $5,000,000 from Victory Park as we continue to advance our internal programs, including finalizing preparations for our phase 3 oral calcitonin clinical trial and negotiations to engage a partner to assume financial responsibility for the program," commented Dr. Warren P. Levy, president and chief executive officer, in a press release. "We are grateful for the continuing support of our largest stockholder."

Unigene's stock (OTCBB: UGNE) gained 10 cents, or 9.52%, to $1.15. Market capitalization is $93.9 million.

Lipoxen raises £2.9 million

Among other completed deals, Lipoxen said it raised about £2.9 million in a private placement of equity.

The company sold 34.2 million ordinary shares to Baxter International Inc., senior management, certain directors and other institutional investors.

"We are very pleased with the support shown in this fundraising from both our partner, Baxter, and leading U.K. and European institutional investors," said M. Scott Maguire, CEO of Lipoxen, in a statement. "We believe that, together with the recent positive announcements surrounding our influenza and malaria initiatives, this funding round demonstrates that Lipoxen has a valuable pipeline, a low risk partnered business strategy and is well positioned for future growth and generation of shareholder value."

Lipoxen plans to use proceeds for pre-clinical research and development and other programs designed to further its clinical products.

Lipoxen's shares (London: LPX) closed at 14.2p. Market capitalization is £16.5 million.

London-based Lipoxen develops vaccines and cancer drugs

Stornoway takes in C$1.43 million

Diamond explorer Stornoway wrapped a C$1.43 million private placement of flow-through common shares.

The company sold approximately 8.42 million of the shares at C$0.17 per share. Insiders purchased 297,059 of the shares.

Also, the deal, which priced on April 24, included a C$500,000 greenshoe that was not exercised.

Proceeds will be used for exploration.

Stornoway's equity (Toronto: SWY) moved up a penny, or 7.41%, to C$0.1450. Market capitalization is C$45.8 million.

Stornoway is based in Vancouver, B.C.

Trans-Siberian arranges loan

Tran-Siberian Gold arranged a $25 million convertible loan, according to a press release.

UFG Asset management has agreed to provide up to $3 million of the debt if the company can secure the remainder through other sources.

Half of the debt is repayable upon the first anniversary of the earlier of two events: commencement of gold production at its Asacha property or Sept. 30, 2011. The balance is due on the second anniversary of either the first gold production or Sept. 30, 2012.

UFG also has the option to convert its share of the loan should the company raise the remaining funds via an equity offering.

Trans-Siberian's stock (London: TSG) ended at 27.5p. Market capitalization is £24.2 million.

Trans-Siberian Gold is a Toft, England-based gold mining company.

49 North plans unit sale

49 North Resource is planning to raise C$15 million through a private placement of equity units, the company said.

Of the units sold, Tom MacNeill, the company's president and CEO, will subscribe for up to 25%. The deal originally priced on April 24.

According to the deal's terms, each unit will contain one common share and one warrant. The units will sell at C$2.75 and each warrant is exercisable at C$3.50 for two years.

Upon closing of the deal, MacNeill will hold approximately 14.9% of 49 North's outstanding shares.

49 North's stock (TSX Venture: FNR) gained 9 cents, or 3.44%, to C$2.71. Market capitalization is C$11.6 million.

49 North Resource is a Saskatoon, Saskatchewan-based investment fund focused on the mining and oil and gas sectors.

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