Sina sets sights on $180 million through insider investment; Greenko plans $46.26 million deal

By Devika Patel

Knoxville, Tenn., Sept. 28 - Sina Corp. aims to raise $180 million for acquisitions by selling stock to New-Wave Investment Holding Co. Ltd., which is controlled by Charles Chao, Sina's chief executive officer.

Greenko Group plc said it will raise $46.26 million in a preference share financing, or about 100% of its market capitalization, in a bid to become the largest renewable energy generator in India. The company's shares (London: GKO) responded well to the news, jumping 23.29%, or 17p, to close at 90p Monday.

Also, Cardica, Inc. announced a $10.2 million private placement of stock, expected to settle this week, which sent its shares (Nasdaq: CRDC) soaring 28.1%, or 34 cents Monday, to close at $1.55.

Cancer researcher Celsion Corp. arranged a $7.06 million registered direct offering of units with agent Needham & Co., LLC. Its shares (Nasdaq: CLSN) dropped 24.53%, or $1.17, Monday, closing at $3.60.

Clarity Commerce Solutions plc said it plans a £2.73 million private placement of shares to help reduce debt.

Sina to get $180 million

Shanghai-based online media company Sina said it hopes to take in $180 million through a sale of approximately 5.6 million ordinary shares to New-Wave Investment Holding.

"I am honored to be given the opportunity to lead this investment in Sina with my management team. This investment is a reflection of management's strong commitment to Sina's future and ties our interest to the rest of the shareholders even closer, while increasing the company's cash reserve for both operational and strategic needs," Sina's chief executive officer Charles Chao, who established and controls New Wave Investment, said in a press release.

"We are pleased to have entered into this significant private placement, which will enhance Sina's liquidity position and ability to execute on strategic undertakings. This management-led investment is a vote of confidence in Sina prospects and strategy," chairman Yan Wang added.

The company's shares (Nasdaq: SINA) rose 2.33%, or 82 cents, closing at $36.07 Monday.

Greenko: $46.26 million

Greenko Group announced plans to sell 36,728,219 preference shares to Global Environment Emerging Markets Fund III LP in a $46.26 million deal Monday. The investor will have the option of converting the securities into 29,124,371 ordinary shares at 98p per share, a 34% premium.

The subscription is conditional on the Hyderabad, India-based clean energy company obtaining the necessary approvals at its annual general meeting.

The proceeds will be used for business development as the company expands its operations.

"We are delighted to receive funding from Global Environmental Fund which shows confidence in Greenko`s business model and its long term ambition to be a leading clean energy player in the fast growing Indian economy and energy markets," chief executive officer Anil Chalamalasetty stated. "We believe Global Environmental Fund's experience in investing in clean energy projects, particularly in hydro assets, in other emerging economies will be a good value addition to the platform."

The investor's president chief executive H. Jeffrey Leonard said in a press release that it was "pleased to enter into a long term partnership with Greenko," and added that "Greenko represents a proven management team that should help meet India's need for sustainable sources of power in the future."

Cardica plans $10.2 million

Redwood City, Calif.-based Cardica is selling 8,142,082 common shares at $1.2525 apiece for $10.2 million, the medical device maker announced Monday. Proceeds will be used to develop the Cardica Microcutter.

In late April, the company announced that it had developed a true multi-fire endoscopic linear microcutter that is significantly smaller than the commercialized endoscopic microcutters currently available. The device, marketed as the Cardica Microcutter, is part of the company's bit to expand beyond the field of cardiac surgery and into additional surgical markets.

"We believe that our true multi-fire endoscopic microcutter product could redefine minimally invasive surgery, potentially resulting in significant improvements in surgical techniques, time and cost savings and ultimately in improved patient outcomes," Cardica's president and chief executive officer Dr. Bernard Hausen said in an April 30 press release.

"The Cardica Microcutter is designed to offer significant advantages to currently available products and has the potential to be used in many applications, including in general, gynecologic and bariatric surgery."

Investors in the private placement will also receive warrants for 4,071,046 shares, which are exercisable at $1.45 for five years.

Celsion: $7.06 million

Celsion priced a $7.06 million registered direct offering of units Monday, which will raise funds for clinical trials and general corporate purposes.

The Columbia, Md., company will sell 2,018,153 units at $3.50 apiece. The units each consist of one common share and one half-share warrant.

Settlement is expected Sept. 30.

Clarity prices £2.73 million

Basingstoke, England's Clarity Commerce plans to raise £2.73 million by selling shares in a private placement.

The software company will sell 6,812,500 ordinary shares at 40p per share via agent Arbuthnot Securities Ltd.

Proceeds will be used to pay the deferred consideration due to the vendors of MATRA, to repay bank debt and to strengthen the company's balance sheet.

"Clarity has made significant progress over the last two years under a new management team, which refocused the business back to its core markets and returned it to profitability and growth," chief executive officer Ken Smith said in a press release. "The successful placing endorses the success of this strategy and highlights the support we enjoy from both existing as well as new shareholders.

"Our financial position has now been strengthened and with this comes the flexibility to make strategic investments in order to address and capitalize on market opportunities. Despite a challenging trading environment, our pipeline is encouraging and I look forward to reporting on some of these prospects in due course," Smith concluded.

The company's shares (London: CCS) dropped 4.76% Monday, or 2p, to close at 40p.

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