NexgenRx wraps C$2 million; UC Resources closes C$4.6 million; Silver Spruce to raise C$1 million

By LLuvia Mares

New York, Oct. 18 - In PIPEs news Thursday, NexgenRx Inc. announcement the settlement of C$2 million in a non-brokered private placement of 8% convertible debentures. The deal priced Sept. 24.

The private placement transaction was exactly what the company needed to get money "fast," said Jeff Dawley, NexgenRx's vice president of finance and corporate secretary.

The three year notes are convertible into common shares at a conversion rate of C$0.35 per share at any time after one year and are redeemable at par after one year. The notes have a four-month hold period.

"The type of model that we offer here is one where revenue sticks to the company," he said. "It's a recurring revenue model based on a per-transaction rate. Towards that end it looks a lot like an income trust without being an income trust."

Toronto-based NexgenRx is a health benefits management company.

Its stock (TSX Venture: NXG) closed at C$0.27 Thursday and did not see much activity on Wednesday.

UC wraps C$4.6 million

UC Resources Ltd. said it has arranged a private placement of units and flow-through units to raise up to C$4.1 million. It also plans a non-brokered placement of units and flow-through units to raise C$500,000.

"PowerOne Capital Markets has an impressive history and a stellar reputation in the financing of leading Canadian mining companies," said Brian Gusko, UC's chief financial officer, in a press release. "They have a worldwide network of contacts that they have built during their history, and UC is looking forward to a strong, long-term relationship."

The company will sell up to 5,777,778 units at C$0.45 apiece for C$2.6 million. Each unit consists of one common share and one half share warrant. Each warrant is exercisable into one non flow-through common share at C$0.70 for two years.

The company also plans to sell up to 3 million flow-through units of one flow-through common share and one half share warrant at C$0.50 each for C$1.5 million. The warrants in the flow-through units have the same terms as those offered in the regular units.

The warrants may expire sooner if the closing price of UC's common shares is at least C$1.50 for at least 30 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.

PowerOne Capital Markets Ltd. will be the agent.

UC also said it will conduct a non-brokered private placement of up to $250,000 in flow-through units and up to $250,000 in non-flow-through units with the same terms as those in the brokered offering.

UC's stock (TSX Venture: UC) closed at C$0.50 on Thursday, down 7.41% from Wednesday's C$0.54 closed.

Proceeds will be used for exploration.

Based in Vancouver, B.C., UC is a base and precious metals company.

Silver Spruce to raise C$1 million

Silver Spruce Resources Inc. announced it plans a private placement of units to raise C$5.75 million.

"We are getting ready to commence our winter drill program so we had to have money in place to be able to continue with that program, a private placement was the quickest," Gordon Barnhill, company chief financial officer and director said. "We are looking at having at least three drills up there this winter."

The company will sell 5 million flow-through units at C$1.15 apiece. Each unit consists of one flow-through common share and one half share warrant. Each whole warrant is exercisable into one non flow-through common share at C$1.75 for 18 months.

There is a greenshoe for an additional 500,000 units, or C$575,000.

PI Financial Corp. will be the agent.

Silver Spruce's stock (TSX Venture: SSE) closed at C$0.94 Thursday, down C$0.05 from Wednesday's C$0.99 close.

All of the offered securities will have a four-month hold period.

Proceeds will be used for exploration.

"We believe we have a lot of potential in the uranium belt up there in Labrador," he said. "There are a lot of other players up there who are finding some excellent results, we have also but we are still in the discovery stage and we believe that we have some excellent potential there."

Silver Spruce is an exploration company based in Bridgewater, N.S.

Crossfire negotiates C$2 million

Crossfire Energy Services Inc. negotiated a non-brokered private placement of shares to raise up to C$2 million.

"We are very opportunistic so as far, as far as additional financing or acquisitions go we always have our eyes open for them," said a company spokesperson.

"Primarily Crossfire Energy is a one-stop shopping place for both fabrication of facilities and tying those facilities in whether requiring pipelining or road construction," he said. "So it's a one-stop shop for the oil and gas explorers once they have acquired success with a well. They come to us and we take the well's success and tie it right into a facility."

The company will sell up to 4 million common shares at C$0.50 apiece.

Closing is expected during the week of Oct. 22.

Crossfire Energy's stock (TSX Venture: CFE) closed at C$0.62 Thursday and did not see any activity on Wednesday.

Proceeds will be used to establish an equipment rental business and for working capital purposes.

Based in Calgary, Alta., Crossfire Energy is a provider of fabrication, construction, installation and maintenance for oilfield facilities and pipelines.

Carpathian to raise A$2.4 million

Carpathian Resources Ltd. announced it plans a A$2.4 million in a private placement of shares.

"Carpathian is on track to develop into a serious player in the European oil & gas market. The restructuring of the company's board, with the addition of Fouad Uzbekov, a senior Gazprom executive, is being followed up by strengthening the company's financial support from world class financial institutions, such as Credit Suisse," said Maximillian Danishevski, company's executive chairman, in a press release.

The company will sell 8 million shares at A$0.30 each.

The company's stock (Australia: CPN) closed at A$0.62 Thursday and did not see any activity Wednesday.

Credit Suisse, Zurich, is the investor.

Proceeds will be used for due diligence on a number of potential projects.

Carpathian is an oil and gas company based in West Perth, Australia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.