Regal eyes C$5 million; First Mid-Illinois sells preferreds; Sunwin offers stock; Radiant cuts deal

By Kenneth Lim

Boston, Feb. 11 - Regal Energy Ltd. plans to sell at least C$5 million of stock and warrant units amid a management change.

First Mid-Illinois Bancshares, Inc. placed $24.64 million of convertible preferred stock to accredited investors and insiders.

Sunwin International Neutraceuticals, Inc. raised $3 million through a stock placement as part of a strategic partnership with the investor.

Radiant Energy Corp. further downsized to C$1.06 million a private stock placement that raised working capital.

Regal to sell units

Regal Energy plans to place at least C$5 million of stock and warrant units in connection with new management.

Regal is offering at least about 83.33 million units of one common share and one warrant at C$0.06 per unit. Each warrant will be exercisable at C$0.12 for three years, but may expire sooner if the company's shares trade above a 25-day volume-weighted average of C$0.18.

Common shares of Regal (TSX: REG) closed flat at C$0.05 on Wednesday. The company's market capitalization is C$7.5 million.

Proceeds will be used to repay debt, for exploration and development, acquisitions of petroleum and natural gas assets within western Canada and general corporate purposes.

Regal is an energy company based in Calgary, Alta.

Concurrent with the closing of the placement, former Gentry Resources Ltd. directors Hugh G. Ross and Michael H. Halvorson will replace Hugh Mogensen and Jake Pronk on Regal's board. Ross will also replace Curtis Hartzler as president and chief executive of Regal.

Former Gentry chief financial officer Ketan Panchmatia and vice president of exploration Greg Groten will take the same roles at Regal. Regal will also have a new manager of operations and corporate administrator.

"We are pleased to have Hugh and his team join Regal," Mogensen said in a press release. "At this challenging time in the energy sector, significant opportunities for growth and consolidation are presenting themselves. Adding a management team with the skill and experience to capitalize on the opportunities we feel exist, positions Regal to emerge as a stronger exploration and production growth company."

First Mid-Illinois sells preferreds

First Mid-Illinois Bancshares is selling $24.64 million of 9% series B non-cumulative perpetual convertible preferred stock. It settled about $22.64 million on Feb. 11, and will issue the remaining upon the completion of certain bank regulatory processes.

The preferreds were sold at $5,000 apiece. Each preferred may be convertible into common stock at $21.94 per common share.

First Mid-Illinois common stock (OTCBB: FMBH) closed at $19.65 on Wednesday, unchanged from the previous session. The company's market capitalization is $121.7 million.

First Mid-Illinois is a Mattoon, Ill., financial holding company.

The preferreds were placed with accredited investors, including directors, executive officers and certain major customers and holders of the company's common stock. Holders of the preferreds may elect two directors to the bank's board of directors if the preferred dividends are not paid for in four dividend periods.

Sunwin raises $3 million

Sunwin International placed $3 million of its common stock to Wild Flavors, Inc. as part of a new alliance between the two companies.

Sunwin sold 20 million shares at $0.15 apiece in the deal. Sunwin common stock (OTCBB: SUWN) closed at $0.365 on Wednesday, up by 10.61% or $0.035. The company has a market capitalization of $38.8 million.

Wild Flavors also received five-year warrants for about 26.67 million shares, exercisable at $0.35.

Proceeds will be used to expand production of Sunwin's herbal extracts.

Based in Qufu, China, Sunwin produces Chinese herbal supplements.

The partnership between the two companies will allow Wild Flavors to sell, market and distribute Sunwin's stevia extracts as well as formulate new food and beverage products.

"We have experienced tremendous success in responding to our customers' needs, and investing in Sunwin International will allow for continued leadership and innovation in the industry," Wild Flavors chief operating officer Kevin Gavin said in a statement.

Jeff Reynolds, president of Sunwin's U.S. subsidiary, added: "Consumer goods companies around the world are excited about the growth opportunities of using stevia in existing products and new products that are in the development stages. We strongly believe that the partnership with Wild Flavors will provide a competitive advantage by developing stevia based solutions that create superior tasting products. ... Partnering with Wild Flavors will allow us to expand our global reach with exciting new healthy sweetening options."

Radiant cuts back on deal

Radiant Energy further shrank its private stock placement, selling C$1.06 million of its common shares.

The deal originally priced for C$4 million in Oct. 30, 2008 and was downsized to C$1.5 million on Feb. 5.

The company eventually sold 21.24 million shares at C$0.05 apiece. Radiant common stock (TSX: RDT) gained 20% or C$0.01 to close at C$0.06 on Wednesday. The company's market capitalization is C$11.3 million.

Proceeds will be used for general working capital.

Based in Port Colborne, Ont., Radiant produces an infrared pre-flight aircraft de-icing system.

Concurrently with the closing of the private placement, Radiant also settled an existing C$300,000 unsecured loan for the issuance of 6 million common shares.

"The proceeds from the private placement will provide Radiant with additional working capital to exploit the opportunities in the airline industry, which is taking steps to operate in a more environmentally sensitive manner," Radiant president and chief executive Larrie Shepherd said in a statement. "Radiant's de-icing system is well-positioned to take advantage of these opportunities."

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