Suroco prices C$50 million offering; Perseus seeks A$29 million; Brainspark sells convertibles

By Stephanie N. Rotondo

Portland, Ore., May 4 - Foreign issuers came out in strength Tuesday to find funding in the PIPE market.

Suroco Energy Inc. priced a previously announced private placement of subscription receipts. The company is aiming to raise C$50 million in the financing, which is being done in connection with a planned merger.

In news from Down Under, Perseus Mining Ltd. announced a A$29.1 million private placement of stock. The company has already completed a public offering and also intends to conduct a share purchase plan.

Among U.K.-based issuers, Brainspark plc said it was seeking £10 million from a private placement of convertible debt. And Shanta Gold Ltd. is planning to sell stock in an effort to raise £2 million.

Of the few U.S. deals, Oxygen Biotherapeutics Inc. said it will launch a registered direct offering of stock to raise $5 million. Investors will also receive warrants.

Suroco prices deal

Suroco Energy priced a previously announced C$50 million private placement of subscription receipts, according to a press release.

The company first announced the deal on April 30.

Suroco intends to sell approximately 76.9 million of the receipts at C$0.65 on a best-efforts basis. Each receipt is convertible into one common share.

The financing is being done in connection with a previously announced merger with Winchester Oil & Gas SA. Suroco will pay $30 million plus 2 million common shares in the transaction. A portion of the proceeds raised in the private placement will be used to fund the acquisition.

Remaining proceeds will be used for business operations and general corporate purposes.

Settlement is expected by June 3.

Suroco's stock (TSX Venture: SRN) finished unchanged at C$0.67. Market capitalization is C$58.3 million.

Suroco Energy is a Calgary, Alta.-based oil and natural gas company.

Perseus seeks A$29 million

Perseus Mining, a Balcatta, Western Australia-based diamond and gold exploration company, hopes to raise A$29.1 million via a private placement of ordinary shares.

The company will sell 15 million of the shares at A$1.94 per share.

The company has already raised approximately C$91 million via a public offering of equity and also intends to launch a share purchase plan.

Proceeds will be used for exploration and development activities at the company's West African gold properties, as well as for general corporate purposes.

Perseus' equity (Australia: PRU) closed at A$1.90.

Brainspark sells convertibles

London-based Brainspark, a company that invests in technology startups and advanced technology businesses, is seeking £10 million from a private placement of 7% convertible bonds, according to a press release.

The company has already raised £3.24 million. The deal originally priced March 31.

The convertible notes can be exchanged for 100,000 ordinary shares per £1,000 bond. The bonds come due March 31, 2014 and are redeemable at 110.

Proceeds will be used to fund committed cash investments, as well as for further investments.

"We are very pleased to receive such a strong positive signal from the market with the placement within three weeks from the launch of the bonds of the first £3,240,000," remarked Francesco Gardin, chairman, in the release. "We remain committed to complete the full placement and move on with our investing strategy."

Brainspark's shares (London: BSP) closed at 0.60p. Market capitalization is £14.8 million.

Shanta to raise £2 million

Also in the United Kingdom, Shanta Gold announced a £2 million private placement of ordinary stock.

The St. Peter Port, Guernsey-based company will issue 10 million shares at 20p per share.

The shares being sold in the placement represent 8.67% of the issued ordinary share capital.

"Proceeds of the placement will be used to further the company's exploration activities in Tanzania as the company moves towards production," Shanta said in a statement.

Shanta's stock (London: SHG) ended at 20p. Market capitalization is £22.3 million

Oxygen plans direct placement

Oxygen Biotherapeutics brought a $5 million registered direct offering of equity to market.

The company will sell approximately 1.72 million common shares at $2.90 per share. Investors will also receive warrants for another 732,758 shares.

The warrants are exercisable at $5.32 for five years.

Proceeds will be used for clinical trials and for regulatory efforts related to the approval of Oxycyte. The company also hopes to use the funding for the development of other product candidates and to support manufacturing and distribution of its Dermacyte Oxygen Concentrate.

Settlement is expected by May 7.

Calls seeking further comment were not returned Tuesday.

Oxygen's equity (Nasdaq: OXBT) dropped 79 cents, or 16.32%, to $4.05. Market capitalization is $87.4 million.

Oxygen Biotherapeutics is a Costa Mesa, Calif.-based developer of medical and cosmetic products that efficiently deliver oxygen to tissues in the body.

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