Wabash issues $35 million preferreds; East West raises $27.5 million; Avita secures facility

By Stephanie N. Rotondo

Portland, Ore., July 20 - Wabash International Corp. and East West Bancorp Inc. both announced the closing of larger-sized private placements Monday.

Wabash said it sold $35 million worth of preferred shares plus warrants to a single investor. The company said that the deal would help to meet its financial needs amid the economic downturn.

East West meanwhile raised $27.5 million by selling common shares. The funds raised are in addition to a planned public offering in which the company will sell 11 million common shares.

Elsewhere, Avita Medical Ltd. secured a three-year equity facility, according to a press release. Proceeds will be used to further advance the company's ReCell product line.

Cadan Resources Corp., a Canadian mining company, lifted a previously announced private placement of units to C$2.5 million from C$1.5 million. A company spokesperson told Prospect News the increase was due to high demand and strong investor support.

Wabash issues $35 million preferreds

Wabash National sold $35 million of preferred stock to Trailer Investments LLC, a division of Lincolnshire Equity Fund III LP, the company announced.

Of the shares sold, $20 million were 15% series E redeemable preferred shares, each selling at $1,000 per share. The company also sold 5,000 of its 16% series F redeemable preferred shares at $1,000 each for proceeds of $5 million. And $10 million of the 18% series G redeemable preferred shares were issued, with 10,000 being sold at $1,000 each.

The investor also received warrants equal to 44.21% of Wabash's outstanding equity. The warrants are exercisable at $0.01 per share.

Upon completion of the transaction, Trailer Investments will also have the right to appoint five out of 12 members of the Wabash's board of directors.

"This capital infusion will fortify our balance sheet, allowing us to put in place a capital structure that meets the needs of the company during this economic downturn, including to obtain needed accommodations under our existing credit agreement," said Dick Giromini, president and chief executive officer, in a press release. "Having conducted a thorough process to evaluate strategic alternatives, we believe that this transaction is a necessary and effective step to protect the interests of our existing stockholders, and we look forward to working with Lincolnshire Management in the future."

"Wabash's market leading position and solid product line present an exciting investment opportunity for us," added Michael J. Lyons, senior managing director of Lincolnshire Management. "We are pleased to be partnering with this caliber of management team and look forward to working together and building upon Wabash's unique franchise."

Wabash's stock (NYSE: WNC) gained 40 cents, or 74.07%, to $0.94. Market capitalization is $26.4 million.

Wabash National is a Lafayette, Ind.-based manufacturer of semi-trailers.

East West raises $27.5 million

East West Bancorp closed a $27.5 million private placement of shares, according to a regulatory filing.

The stock sold on July 14 at $5.50 per share to two investors. About 5 million shares were issued.

Additionally, the company announced a public offering of 11 million common shares. The offering also includes a greenshoe of 1.65 million additional shares.

"The public offering completes a comprehensive capital-raising plan that to date has raised $168.9 million of tangible common equity through exchanges of series A preferred shares into common shares, private sales of common stock and the de-securitization of private label MBS securitizations," the company said in a press release.

"With our recent actions that have increased tangible common equity by $168.9 million and this offering, we believe we have the capital to weather an even more severe economic environment than we currently expect," stated Dominic Ng, chairman, president and CEO of East West, in the release. "And this additional capital will provide us with flexibility to pursue new growth opportunities or keep up an aggressive pace in resolving problem assets, should economic conditions get worse."

East West's shares (Nasdaq: EWBC) fell 27 cents, or 3.86%, to $6.72. Market capitalization is $423 million.

East West Bancorp is the Pasadena, Calif.-based parent company of East West Bank.

Redcliffe wraps stock deal

Among other completed deals of the day, Redcliffe Exploration Inc. said it sold C$8.2 million of class A shares in a private placement.

The company sold 32.8 million of the shares at C$0.25 per share. Approximately 17.54 million shares were issued July 1 and approximately 1.26 million sold on July 9.

Redcliffe plans to use proceeds to reduce debt.

Redcliffe's stock (TSX Venture: RXP.A) ended unchanged at C$0.25. Market capitalization is C$18.6 million.

Redcliffe Exploration is a Calgary, Alta.-based oil and natural gas company.

Avita secures equity facility

Avita Medical arranged a A$5 million three-year committed equity financing facility with Fortrend Securities Pty. Ltd., according to a press release.

Proceeds from the drawdown facility will be used to advance commercialization of ReCell Autologous Spray-On Skin, a regenerative product that treats a wide range of burns, wounds, scars and skin defects.

"This new capital will be used to advance marketing and sales initiatives mainly in European markets," said William Dolphin, CEO, in the release. "We are delighted to secure the funding as this provides financial security and will help us increase market penetration for ReCell. We believe ReCell will redefine the clinical treatment of burns, scar remodeling and other skin defects and injuries and will become the new standard of care for burns and wounds treatment in the future."

"We are very pleased to provide funding to help Avita achieve its commercial objectives," added Joe Forster, Fortrend's CEO. "The company's products represent the next generation of health care technology and offer substantial benefits to patients and cost savings to health care systems. ReCell is a disruptive technology with the potential to revolutionise wound care markets."

The company also noted that it had recently been awarded a $1.45 million grant from the U.S. Armed Forces Institute of regenerative Medicine to accelerate approval of ReCell in the U.S.

Avita's equity (Australia: AVH) closed at A$0.098.

Avita Medical is a Nedlands, Australia-based biomedical company.

Cadan upsizes unit sale

Cadan Resources, a Vancouver, B.C-based base metals exploration company, increased a private placement of equity units to C$2.5 million from C$1.5 million.

The deal - which originally priced on July 7 - includes the sale of 25 million units at C$0.10 per unit. Each unit will hold one common share and one warrant. The warrants are exercisable at C$0.15 for two years.

John Anderson, Cadan's director of corporate development, said the upsizing was due to "high demand" for the units.

"We are going to a near-term production scenario," Anderson told Prospect News. As such, "we knew we would need more [funds]."

Anderson added that the deal has received strong investor support.

Proceeds raised in the transaction will be used to develop Cadan's T'Boli gold-silver deposit and for exploration of the surrounding areas. Funds will also be used at the company's Tagpura-Kalamatan project.

Cadan's stock (Toronto: CNF) gained 2 pennies, or 16.67%, to C$0.14. Market capitalization is C$19.2 million.

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