Dragon Oil plans $99.5 million private placement; improved stocks fail to help volume

By Sheri Kasprzak

Atlanta, April 29 - Ireland's Dragon Oil plc led private placement news with word that it plans to raise $99,554,073 in a private placement of stock.

The company plans to issue 59,625,000 at $1.66967 each to institutional investors in North America, Europe and the Gulf Cooperation Council region.

Aton International Ltd. and Davy Corporate Finance Ltd. are the joint global bookrunners on the deal and Emirates Financial Services PSC is the lead manager in the GCC.

Dragon also launched an open offer to shareholders for 39,939,661 shares on the basis of 90 shares for every 911 ordinary shares at $1.66967 each for proceeds of $66,686,053.

The company plans to use the proceeds from both the private placement and the open offer for field development on its Cheleken contract area in the Caspian Sea and to repay a short-term loan for $40 million. The remainder of the proceeds will be used for working capital and general corporate purposes.

Based in Dublin, Ireland, Dragon is an oil and natural gas exploration company.

Elsewhere in the private placement market, sell-siders said despite solid stock market gains, losses on Thursday may have put potential issuers off.

"Even though we saw some nice stock gains today, some issuers are probably just throwing in the towel this week," said one sell-sider.

"I just don't think it's enough to get beyond the really bad conditions out there yesterday. And it is the end of the week, so some companies may have just decided to wait and see what next week brings."

The Dow Jones Industrial Average gained 122.14 to close at 10,192.51; the Nasdaq composite index closed up 17.47 at 1,921.65 and the S&P 500 edged up 13.63 at 1,156.85.

Meanwhile, oil prices continued to slide, dragging down issuance in Canada as well as the week wrapped up.

"Oil is still down, volume is still down, and there are a lot of other factors [affecting volume]," said one sell-sider in Canada. "Resources stocks are essential to this market here and until those stocks improve, there will probably be slim pickings."

Oil prices dove $2.05 to close at $49.72 per barrel Friday.

Mint plans C$2.5 million deal

Mint Technology Corp. has arranged a private placement of units for C$2.5 million.

The offering includes 6.25 million units at C$0.40 each.

The units are comprised of one share and one half-share warrant. The whole warrants allow for an additional share at C$0.50 each for two years.

Northern Securities Inc. is the placement agent in the offering and has an over-allotment option for up to 3.75 million additional units.

As a condition of the private placement, the company must convert its outstanding debentures, totaling C$2 million plus interest.

"Looks okay to me," said one market source who had seen the deal. "I'd say it's pretty much in line. Their stock isn't booming on the announcement, but made some slight gains. So, I think it'll go well."

After the deal was announced Friday morning, the company's stock gained C$0.05 to close at C$0.50.

"This funding keeps us on track with our strategic implementations and will allow us to capitalize on our first mover advantage in the prepaid card market," said the company's president, Frank Maduri, in a statement.

In connection with the new private placement, Mint cancelled its previously announced C$7 million offering it had arranged earlier this month with Desjardins Securities Inc.

Based in Toronto, Mint develops electronic transactions for financial payments.

BRC closes C$2.5 million deal

BRC Diamond Corp. closed a C$2.5 million private placement of stock to help fund its diamond exploration plans in the Democratic Republic of the Congo.

The company sold 1 million shares at C$2.50 each.

Kingsdale Capital Markets Inc. was the placement agent.

The company also said it has granted a stock option plan for 225,000 stock options, exercisable at C$2.50 each through April 29, 2010.

Based in Toronto, BRC is a diamond exploration company. Deal proceeds not used for exploration will be used for general corporate purposes.

On Friday, BRC's stock lost C$0.01 to close at C$2.50.

Goldbrook raises C$2 million

Goldbrook Ventures Inc. said it has wrapped a C$2 million private placement of stock.

The company sold 1,818,182 shares at C$0.55 each to Anglo American Exploration Ltd.

"That's a good premium, so obviously it went well," said one Canadian market source. "It's also good for Anglo's interest too and gives them a foothold in a company that will benefit them for the long term. So good for both of them."

Based in Vancouver, B.C., Goldbrook is a mineral exploration and development company.

On Friday, the company's stock gained a penny to close at C$0.41.

Enterra's stock makes gains

Two days after wrapping up its C$100 million equity line from Kingsbridge Capital Ltd., Enterra Energy Trust's stock made gains.

The company's stock closed up C$0.72, or 2.85%, at C$26.02 Friday.

On Thursday, the company's stock lost C$1.62 to end at C$25.30 and on Wednesday, when the deal closed, the company's stock lost C$1.13 to close at C$26.92.

The company's stock dropped C$1.62 to close at C$25.30 on Thursday.

Under the terms of the agreement, Enterra may sell trust units to Kingsbridge with a C$12 per trust ceiling.

Based in Calgary, Alta., Enterra is an oil and natural gas exploration and development company.

Airbee's stock dives

Airbee Wireless, Inc.'s stock dove Friday, a day after announcing it had received a $20 million equity line from Cornell Capital Partners, LP.

The company's stock slid $0.35, or 31.25%, to end at $0.77.

On Thursday, when the company first announced the equity line, the company's stock closed down $0.06 to end at $1.12.

Under the terms of the agreement, the company may sell shares at 97% of the lowest volume weighted average price of the company's stock for five days before notice of a draw.

Based in Rockville, Md., Airbee produces connectivity software for wireless voice, data and video communications.

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