Eaglecrest expects to take in $3.31 million from units; ServicePower settles £5 million stock sale

By Devika Patel

Knoxville, Tenn., July 30 - Eaglecrest Explorations Ltd. announced Wednesday that a $3.31 million private placement of units will be fully subscribed, and ServicePower Technologies plc said it has pocketed £5 million by selling its ordinary shares through agent KBC Peel Hunt.

Eaglecrest to get $3.3 million

Eaglecrest Explorations said its planned $3.3 million private placement of units should be fully subscribed. The company announced the deal in February under completely different terms.

The Vancouver, B.C.-based company originally planned to raise C$1.2 million by selling units of a common share and a full warrant priced in Canadian dollars. The deal it described Wednesday, however, was in U.S. dollars and included 33,057,700 units at $0.10 apiece. Each of these units consists of one share and one half-share warrant. The whole warrants are exercisable at $0.20 for one year.

Proceeds will be used to continue the gold exploration company's infill and delineation drilling program at its San Simon gold project in Bolivia.

"This financing provides us with the operating flexibility to continue our aggressive drilling campaign as the company nears its goal of establishing a NI 43-101 compliant gold resource for the first kilometer of the Dona Amelia zone," Eaglecrest Explorations president and chief operating officer Hans Rasmussen said in a press release.

"Additionally, we intend to buy two diamond drill rigs from Major Drilling Group International that are already onsite. Owning the drill rigs will reduce our monthly drilling costs by at least 30%."

The company's shares (Pink Sheets: EGLXF) remained unchanged on Wednesday, closing at $0.785.

ServicePower sees £5 million

ServicePower, a Stockport, England-based supplier of outsourcing services and software to the mobile repair and installations industry, said it has conditionally placed about 100 million ordinary shares through agent KBC Peel Hunt.

The sale, which raised £5 million for the company, is the first financing the company has completed since announcing in June that it plans to move to London's Alternative Investment Market and cancel the listing of its shares on the London Stock Exchange's main market.

The company said it intends to use the proceeds from the deal to strengthen its balance sheet as it moves forward with the move to the AIM exchange, expected to take place on Sept. 23, according to a Wednesday press release announcing both the private placement and updates on the AIM move.

"In our announcement of June 9, 2008, we stated our intention to undertake a fund raising and move to AIM," ServicePower chief executive officer Mark Duffin said in Wednesday's news release. "We believe AIM is a more appropriate market for ServicePower at this time and that, with new funding in place, ServicePower will be ideally positioned to continue to drive forward its sales focused strategy, which has led to significant improvements in lead generation and closure this year.

"This can be evidenced through our contract signings with new blue chip customers including Bosch Tools, Airwell Fedders and a multimillion dollar contract with one of the largest in-home service providers in the U.S.

"With the restructuring well under way and a number of new initiatives in the pipeline we can now look forward to entering a new stage of growth."

The company said in its June 9 press release announcing the private placement and the move to AIM that it believes that AIM, with its lower cost of complying with continuing obligations, is more appropriate for a company of ServicePower's size.

The AIM rules require that the company appoint a nominated adviser and broker before its shares can be admitted. KBC Peel Hunt, the agent for this deal, has agreed to act as that adviser and broker.

The company's shares (London: SVR) saw a modest rise of 0.06%, or 0.03p to close at 5p on Wednesday.

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