Markets
MKTS

Direct Markets Shareholder Pares Holdings

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Steven Newby, a significant shareholder in Direct Markets (MKTS), has cut his stake in the company by more than half, according to a filing with the Securities and Exchange Commission on Aug. 31. Newby, the founder of the Genomics Fund mutual fund in 2000 and its portfolio manager until 2003, held more than 3.7 million shares in New York-based Direct Markets in April, which represented 11.2% of the company, according to a proxy. But his latest disclosure indicates that he recently sold more than 2.1 million shares, leaving him with 4.9% of the company, which until recently was known as Rodman & Renshaw Capital Group. At its time of filing, the proxy indicated that Newby was the largest shareholder in Direct Markets behind company CEO Edward Rubin, who owned 40.5% of the stock.

Markets

Heavy Earth Raises $1M in Convertible Debt

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Heavy Earth Resources (HEVI) announced that it has raised $1 million in a Convertible Senior Debentures transaction. The company formed in 2004 as Swinging Pig Productions, a low budget film producer that planned to make movies about a character known as "Skater Girl." Swinging Pig changed its name to Heavy Earth Resources in 2011. The fixed conversion price of the Convertible Senior Debentures is $0.60 per share, an approximate 31.82% discount to the market price ($0.88) of HEVI at deal announcement. The Investors received 1,666,667 5-year Warrants with an exercise price of $0.85 per share.

Markets

Ironridge Puts $5M into Cereplast

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Cereplast, Inc. (CERP) announced that it has raised $5 million in a Convertible Preferred Stock transaction to fund its compostable bag making operations. The fixed conversion price of the Convertible Preferred Stock is $0.25 per share, an approximate 31.58% premium to the market price ($0.19) of CERP at deal announcement. Warrants were not disclosed. This transaction was completed without an agent. The investor was Ironridge Technology Company.

Markets
MKTS

Turmoil at Direct Markets/Rodman & Renshaw

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Direct Markets Holdings Corp. (MKTS) on Thursday updated its listing status on Nasdaq and announced that Kevin Lupowitz had resigned from the board of directors and would not assume the role of CEO on Sept. 1. The disclosures, revealed in a filing with the Securities and Exchange Commission, are the latest in a string of challenges acknowledged by the transitioning company. While trying to develop its DirectMarkets electronic platform that connects private placement issuers and investors, the company has shed assets that it purchased from Investor Relations Group (IRG) in February and is attempting to spin off its broker dealer arm, Rodman & Renshaw, which for years had been one of the most prolific PIPE placement agents in the market.