Patient Safety seeks $4.8 million; Silver Recycling markets C$2 million convertible debentures

By Devika Patel

Knoxville, Tenn., Aug. 28 - The action all happened after the close Wednesday as Patient Safety Technologies, Inc. wrapped a $2.3 million stock sale that it hopes will be part of a larger financing. All told, the company hopes to raise $4.8 million by the end of August.

Meanwhile, Silver Recycling Co. also waited until after the close Wednesday to announce it plans to sell C$2 million of its 10% convertible debentures, the majority of which will be bought by a private Swiss-based investment firm, Cyclecommunication GmbH, and its principal, Erich Perroulaz.

The company's shares (TSX Venture: TSR) reacted favorably to the news, jumping 15%, or 6 cents, to close at C$0.46 Thursday.

Patient Safety seals $2.3 million

Patient Safety settled a $2.3 million private placement of stock after the close Wednesday, which the company announced as an initial tranche of a $4.8 million sale. The Temecula, Calif.-based company said it is considering selling up to $2.5 million more of the common stock by Aug. 31.

In Wednesday's deal, Patient Safety sold 1.86 million common shares at $1.25 per share. Investors also received a five-year warrant to purchase an additional 1,162,500 common shares at $1.40.

Proceeds will go toward further enhancing sales and marketing at the company's SurgiCount Medical subsidiary.

"Consistent with our previously disclosed growth plans, this private placement provides the company with the extra capital necessary to expand our sales force to service and develop new and emerging markets," chief executive officer Bill Adams said in a press release.

"The company continues to add new health care facilities to its growing list of customers, and the need for a physical presence in these areas is necessary to keep up with the demand," Adams added.

Patient Safety acquires companies in the health care and medical products field. SurgiCount develops and manufactures products and services for patient safety. Its shares stayed steady at $1.41 on Thursday.

Silver Recycling sells C$2 million

Silver Recycling announced plans to raise C$2 million in a private placement of 10% convertible debentures that priced after the close Wednesday.

Of the debentures, C$1.5 million will be sold to a private Swiss-based investment firm, Cyclecommunication, and its principal, Perroulaz.

The two-year debentures may be convertible at any time into common shares at C$0.75 per share. They pay interest at 10% per annum, payable quarterly, beginning on the 180th day after the deal settles.

The debentures also are redeemable, without penalty, at any time after one year.

Investors also will receive one warrant for every C$10 in convertibles bought; each warrant will be exercisable at C$0.90.

Settlement of the first tranche is expected in a few days, the company said in a press release.

"Securing this interim financing provides Silver Recycling with the necessary working capital to continue with its business plan, completing due diligence on our second acquisition and moving forward with our capital plans," Silver Recycling president and chief executive officer Don Holmstrom said in the release.

The Vancouver, B.C.-based company is pursuing opportunities to acquire silver scrap recycling companies in North America. It announced at the end of July that it had entered into a non-binding letter of intent to acquire a silver scrap refining company, and Silver Recycling said it is undertaking preliminary due diligence of this target.

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