Canadian deals dominate market over U.S. holiday; RITA Medical raises $12 million

By Sheri Kasprzak

Atlanta, Nov. 29 - While companies in the United States took a break for Thanksgiving, Canadian companies feasted upon investment opportunities in the private placement market.

A deluge of Canadian deals was issued over the Thanksgiving holiday, while U.S. volume took a dive.

According to Canadian sources, it's hard to say what exactly drove the Canadian market over Thursday and Friday.

"Nothing in particular, other than strong gold prices," said one sell-side source when asked what pushed Canadian volume.

On Monday, with life back to normal in the United States, RITA Medical Systems Inc. announced that it raised $12 million through the sale of 4.4 million shares at $2.75. The institutional and accredited investors in the deal also received warrants for 3.3 million shares, exercisable at $4 each through Nov. 24, 2009.

The common shares involved in the deal, according to a statement from RITA, were priced at a slight premium to the company's five-day average closing price ending Nov. 23. The company's stock closed at $3 on Nov. 23.

The exercise price of the warrants in the deal represents a 47% premium to the five-day average closing price ending Nov. 23.

Wells Fargo Securities LLC was placement agent in the offering.

Based in Mountain View, Calif., Rita Medical Systems manufactures and markets products for cancer patients. The company intends to use the proceeds from the offering for working capital and general corporate purposes.

On Monday, the company's stock closed up $0.06 at $3.07.

NetSol raises $1.61 million

In other U.S. private placement news, NetSol Technologies Inc. sold $1.61 million in shares and warrants to a foreign individual investor.

Ageel Karim Dhedhi bought 1 million shares at an average weighted cost of $1.61 each from the company on Nov. 26. Dhedhi also received 400,000 warrants, exercisable for five years.

NetSol is a Calabasas, Calif.-based banking software and technology company. The company's stock closed up $0.20 at $2.09 Monday.

Canadian deals

Leading the pack of Canadian companies that flooded the market this holiday weekend was Eastshore Energy Ltd.

The company closed a deal Thursday for C$15 million.

The offering included 5,454,546 class A shares at C$2.75 each.

An underwriting syndicate led by GMP Securities Ltd. exercised a greenshoe in the deal for 1,818,182 class A shares.

Based in Calgary, Alta., Eastshore is an oil and gas exploration and development company. The company will use the proceeds from the deal for exploration and development at its Niton project, its West Edson Resource play and other prospects in the west-central Alberta area.

On Monday, the company's stock up C$0.15 at C$3.20.

Blue Mountain plans deal

Blue Mountain Energy Ltd. will head to the private placement market with a C$13.5 million offering, the company said Monday.

The company plans to sell 1 million common shares at C$8.25 each and 500,000 flow-through shares at C$10.60 each.

The deal is being underwritten by a syndicate led by FirstEnergy Capital Corp.

Based in Calgary, Alta., Blue Mountain is a natural gas exploration and development company. The proceeds from the deal will be used for the company's ongoing exploration and development and for general corporate purposes.

On Monday, the company's stock dropped C$0.20 to C$8.50.

Connacher closes upsized deal

Connacher Oil and Gas Ltd. wrapped up the first tranche of its previously announced private placement for C$11.6 million.

The first closing consists of 19.3 million shares at C$0.475 and 4 million flow-through shares at C$0.60 each. The amount to be raised through flow-through shares was increased to C$7 million from C$6 million.

If fully subscribed, the deal will rake in C$21.25 million for the company.

Dominick & Dominick Securities Inc. is the placement agent in the deal.

Connacher, based in Calgary, Alta., is an oil and gas exploration and production company. The company plans to use the proceeds to fund its western Canadian exploration and development activities at the Great Divide oil sands project and on other properties in Saskatchewan.

The company's stock closed down C$0.09 at C$0.50.

Cathedral to raise C$10 million

Cathedral Energy Services Income Trust said Thursday it will raise C$10 million through the private placement of units.

The company will issue 2 million trust units at C$3 each for a total of C$6 million.

Harris Partners Ltd. is the underwriter in the deal.

Calgary, Alta.-based Cathedral is a limited-purposes trust, which owns the securities of Cathedral Energy Services Ltd. The company plans to use the proceeds from the deal for general working capital purposes.

Cathedral's stock closed up C$0.01 at C$3.30.

Clear hits market

Clear Energy Inc. will raise C$7.015 million in a private placement, the company announced Friday.

The company will sell 1.22 million flow-through common shares at C$5.75 each.

The financing is being underwritten by a syndicate led by Tristone Capital Inc.

Clear Energy is a Calgary, Alta.-based oil and gas exploration and development company. It plans to use the proceeds from the private placement for ongoing exploration activities.

On Monday, Clear's stock dropped C$0.10 at C$4.65.

Anatolia raises C$7 million

Anatolia Minerals Development Ltd. closed up a private placement for C$7 million, the company said Monday.

The company will issue 4 million units at C$1.75 each. The units consist of one share and one half-share warrant.

The whole warrants allow for an additional share at C$2.50 for two years.

An underwriting syndicate co-led by Haywood Securities Inc. and Dundee Securities Corp. is involved in the offering.

Toronto-based Anatolia is a minerals exploration company with operations in Turkey. The company plans to use the proceeds from the financing for the exploration and development of its Copler project in Turkey and for general working capital.

Anatolia's stock closed down C$0.07 at C$1.73.

Klondex wraps deal

Klondex Mines Ltd. said Friday it closed a C$6.25 million private placement.

The company sold 2,632,000 units and another 658,000 units from the exercise of a greenshoe at about C$1.90 each.

The units consist of one share and one half-share warrant.

The whole warrants in the offering allow for an additional share at C$2.35 each for 18 months.

Canaccord Capital Corp. and Jones, Gable & Co. Ltd. were underwriters in the deal.

Klondex is a Vancouver, B.C.-based mineral exploration company. It plans to use the proceeds from the private placement for work on its Fire Creek property, working capital and general corporate purposes.

The company's stock closed up C$0.02 at C$2.35 on Monday.

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