Claude aims for C$15 million; Archangel to issue converts; Daimler plans stock sale; BioLabs wraps deal

By Stephanie N. Rotondo

Portland, Ore., March 23 - Claude Resources Inc. announced two private placements Monday that would bring in a total of C$15 million.

The financings, which include both common stock and flow-through shares, will be used to reduce debt and enhance liquidity, as well as to further explore the company's mining fields.

Archangel Diamond Corp., another mining company, plans to raise C$6 million by issuing convertible notes.

Among the day's larger deals, Daimler AG will raise €1.95 billion though a placement of stock, the company announced. The 96.4 million shares were issued to one investor, Aabar Investments PJSC. The parties plan to explore their joint initiative options.

Cleveland BioLabs Inc. wrapped a $2.94 million placement of preferreds and warrants. Also, Central European Media Enterprises Ltd. completed a stock sale totaling $241.5 million.

Claude aims for C$15 million

Claude Resources is planning to raise C$15 million through two private placements, the company announced.

The gold mining company will sell common shares at C$0.75 per share to raise the initial C$10 million. The remaining C$5 million will come through the issuance of flow-through shares.

Neil McMillan, Claude's president and chief executive, said proceeds from the financings would be used to redeem part of an existing debenture, while the funds from the flow-through shares will be used for further exploration of the company's mines.

The financings "reduces balance sheet risk and enhances liquidity," McMillan told Prospect News.

The deals announced Monday are not the first private placements Claude has negotiated, McMillan added. He said that the "excessive" costs associated with a public offering led the company to decide to go the private route this time around.

"We have been quite satisfied with the private placement market, he said. "We know the relative merits and downsides to both approaches."

Settlement is expected by April 9.

Saskatoon, Saskatchewan-based Claude saw its stock (TSX: CRJ) drop 6 cents, or 6.74%, to $0.83.

Archangel to issue convertibles

Archangel Diamond announced a non-brokered private placement of five-year convertible notes totaling C$6 million, according to a press release.

The notes, which bear interest at Libor plus 7.5%, will be issued to Cencan Societe Anonyme - a subsidiary of the De Beers Group - and Firebird Global Master Fund Ltd. The notes are convertible into common shares at any time at C$0.065 per share.

Also, investors will receive one warrant for every C$0.065 invested. The warrants are exercisable for five years at C$0.10.

"From a company perspective, we appreciate the financial support from [Cencan] and Firebird," Jocelyn Fraser, a company spokesperson, told Prospect News.

Fraser said the current deal came after another private placement fell through. De Beers was also involved in that transaction. However, because certain regulatory approvals were not secured by the termination date, the deal fell apart and the invested funds were returned to investors.

Still, Fraser said the previous deal was considered "attractive" by the involved investors. As such, the current financing proposal was well received.

"We looked at a number of different options," Fraser said. "We felt a private placement was in the best interest of our shareholders."

Furthermore, "the funds coming in will enable us to continue with our current activities and to pursue our interest in the Verkhotina Project [located in northwest Russia]," she added.

Archangel's equity (TSX: AAD) last traded on March 20 at $0.10.

Archangel is a Toronto-based diamond exploration company.

Daimler plans stock sale

German automaker Daimler AG will issue 96.4 million shares of common stock to raise €1.95 billion, according to a press release.

The shares will be sold at €20.27 per share to Aabar Investments PJSC.

Funds from the transaction will be used to improve the company's financial position. Additionally, both parties are looking at ways to further explore their partnership, including focusing on joint initiatives to develop electric vehicles and new innovative compound materials to be used in manufacturing.

"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy," Dr. Dieter Zetsche, chairman of Daimler AG and head of Mercedes-Benz Cars, said in the release. "We look forward to working together to pursue joint strategic initiatives."

"Daimler is an iconic brand and a financially strong company with a reputation for excellence worldwide," added Khadem Al Qubaisi, chairman Aabar. "We are delighted to have the opportunity to make this investment and are excited by the commercial potential of our partnership. We believe that our future cooperation will be beneficial for Aabar and create social and economic benefits for Abu Dhabi and the United Arab Emirates. We look forward to working with Daimler to fully realize these opportunities."

Daimler's stock (NYSE: DAI) gained $1.37, or 4.82%, to $29.82. Market capitalization is $27.4 billion.

Cleveland BioLabs wraps deal

Cleveland BioLabs completed a $2.94 million private placement of series D convertible preferred stock on Friday, according to a regulatory filing.

The company issued 293.76 preferreds at $10,000 each, the company said in an 8-K filed with the Securities and Exchange Commission. The preferreds are convertible into common stock at $1.40 per share and are redeemable by Feb. 13, 2012.

The company also issued warrants for approximately 2 million shares, exercisable at $1.60 for seven years.

Proceeds will be used for working capital.

Cleveland's equity (Nasdaq: CBLI) increased 7 cents, or 5.22%, to $1.41. Market capitalization is $19.3 million.

Cleveland BioLabs is a Cleveland-based company that develops cancer treatments.

CME raises $241.5 million

London-based media company Central European Media raised $241.5 million in a private placement of shares, the company said Monday.

The company sold 14.5 million class A shares at $12.00 per share and 4.5 million class B shares at $15.00 per share to TW Media Holdings LLC, according to an 8-K filing.

"I'm confident that this alliance with Time Warner will accelerate CME's future development and take it to levels I could only dream of fifteen years ago," CME's non-executive chairman, Ronald S. Lauder, said in a press release. "The combination of CME's market leading positions and Time Warner's brands will enhance the prospects of both companies as we work together."

"This transaction with CME is a unique opportunity for us to invest in - and partner with - the leading media company in Central and Eastern Europe," Time Warner's Jeff Bewkes, chairman and CEO, commented in the release. "While the region has been experiencing the impact of the global economic crisis, we believe CME is ideally positioned over the long term as Central and Eastern Europe returns to significant growth and the media sector in these countries continues to evolve. The investment advances our strategy to create, package and deliver high-quality programming on multiple platforms globally, while also meeting the financial requirements we use to assess possible investments. We believe this transaction will create value for the shareholders of both companies as we work with CME's talented management team to achieve their business's full potential over time."

"The success of CME is driven by our strong local management teams and their ability to create content that meets the expectations of the local audiences," added Adrian Sarbu, CME's president and chief operating officer. "Time Warner and Warner Bros. are recognized leaders in the content business and have the skills and experience necessary to enhance the quality of our local programming. We're looking forward to strengthening our longstanding business relationship with Time Warner and working closely with their teams."

The deal is expected to close before the end of the second quarter.

Central's stock (Nasdaq: CETV) gained $3.69, or 36.90%, to end at $13.69. Market capitalization is $538 million.

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