Chamaelo prices C$305 million private placement; Tyhee raises C$4.9 million

By Sheri Kasprzak

Atlanta, April 7 - Chamaelo Energy Inc. led private placement news Thursday, announcing the pricing details of its C$305,022,500 offering.

The pricing of the deal, according to market sources, was helped by record-high oil prices.

"Oil looks like it will stabilize at these incredibly high prices," said one sell-sider. "That's obviously good news for energy companies looking to do PIPE deals."

Even so, oil prices fell on Thursday, dropping $1.74 to close at $54.11 per barrel.

According to the terms of the Chamaelo deal, the company will issue 38,465,000 series E subscription receipts at C$6.50 each and 55,000 series D subscription receipts at C$1,000 each.

The series E receipts will be converted into one trust unit of Vault Energy Trust, a trust created from the reorganization of Chamaelo, and one common share of Chamaelo Exploration Ltd., another portion of Chamaelo created through the reorganization.

The series D receipts will convert into convertible debentures of the trust.

Each debenture has a face value of C$1,000, matures June 30, 2010, bears interest at 8% annually and is convertible into trust units at C$5.75 each.

A syndicate of underwriters co-led by Orion Securities Inc. and GMP Securities Ltd. also has an over-allotment option for up to 3,847,l00 additional series E receipts.

After the offering was announced Thursday morning, Chamaelo's stock lost C$0.12 to close at C$6.59.

The proceeds from the offering will be used for Chamaelo's $375 million acquisition of oil and natural gas properties in West Central Alberta and Northeastern British Columbia.

Based in Calgary, Alta., Chamaelo is an oil and gas exploration company.

Elsewhere in PIPEs Thursday, some sources noted that the structure of choice among undervalued U.S. companies this week has been convertibles.

"I don't think there's anything in particular going on in the market that would cause more companies to issue these types of deals," said one market source. "I do think that companies that are undervalued will look to these types of deals to get better terms."

Another market source flatly refused to comment directly on the cause of the recent surge in convertible issuance in the PIPE market, but did acknowledge that there have been more of those types of deals.

Tyhee wraps C$4.9 million deal

Tyhee Development Corp. said it brought in C$4,922,660 from a private placement of stock and units.

The company sold 6,210,759 flow-through shares at C$0.38 each and 6,743,790 non flow-through units at C$0.38 each.

The units are comprised of one share and one warrant. The warrants are exercisable at C$0.50 each through March 31, 2007.

Clarus Securities Inc. was the placement agent in the offering.

Based in Vancouver, B.C., Tyhee is a gold exploration and development company. It plans to use the proceeds from the deal for work on its Ormsby Zone, West Zone and other regional exploration. The remainder will be used for general corporate purposes.

On Thursday, Tyhee's stock closed up C$0.035 at C$0.385.

Astrata Group raises $3 million

Astrata Group Inc. said it plans to raise $3,034,447 in a private placement of stock, the company said.

The company will sell 866,985 shares at $3.50 each.

The investors will also receive warrants for 866,985 shares at $3.50 each for five years.

The deal, according to one market source, was priced very low.

"It looks to me like they're practically giving away shares," said the source. "To be honest, I see no reason the company would have for offering so low."

After the deal was announced early Thursday afternoon, Astrata's stock dipped $0.20 to close at $5.30.

Rodman & Renshaw LLC and Westminster Securities Corp. were the placement agents.

"This financing allows Astrata to focus on its advanced location-based IT services and solutions that combine GPS positioning, wireless communications and geographical information technology, which together enable businesses and institutions to monitor, trace or control the movement and status of machinery, vehicles, personal or other assets," said the company's chief executive officer, Tony Harrison, in a statement.

Based in Los Angeles, Astrata provides global positioning system, wireless communications and other technologies. The proceeds of the offering will be used to repay short-term debt. The remainder will be used for working capital and general corporate purposes.

Rada plans $3 million deal

Rada Electronics Industries Ltd. said it is set to close a $3 million private placement.

The offering includes 965,934 shares at $1.60 each, sold to existing institutional investors. The investors have also agreed to exercise additional investment rights for 909,066 shares, also priced at $1.60 each.

The investors will receive warrants for 1,875,000 shares at $2.10 each for two years.

"We are very pleased that we are able to conclude this financing with a few of our existing institutional investors," said the company's chief executive officer Adar Azancot, in a statement. "These funds provide Rada with the resources necessary to finance the growth of our business, including the digital video recorder product line and the new electro-optic product line that we acquired in February with the acquisition of the assets of Vectop Ltd."

Based in Netanya, Israel, Rada produces avionics systems for military and commercial aerospace uses. The proceeds will be used to finance the growth of the company's digital video recorder product line and other products.

On Thursday, the company's stock closed down $0.011 at $1.649.

DRC's stock jumps

A day after announcing its plans to raise C$3 million in a private placement, DRC Resources Corp.'s stock was up.

The company's shares closed higher by C$0.40, or 6.3%, at C$6.75 on Thursday.

On Wednesday, when the offering was first announced, the company's stock closed up C$0.15 at C$6.35.

"It's definitely good for them and their stock," said one market source following the deal. "The premium on the shares is very good."

The offering includes flow-through shares at C$7.50 each.

Based in Vancouver, B.C., DRC is a gold exploration and development company.

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