Commonwealth Bankshares raises $15 million; Canadian deals prevail in market

By Sheri Kasprzak

Atlanta, Oct. 14 - In a relatively sluggish day for American private placements, the Canadian market saw reasonably good volume, sell-side sources said Thursday.

Heading up American private placements was a $15 million deal from Norfolk, Va.-based Commonwealth Bankshares Inc.

The company had originally intended to raise only $8 million from its private placement, but sold 943,396 shares at $15.90 through agent Anderson & Strudwick Inc.

The funding, according to a statement from Commonwealth, will be used to enhance the company's long-term growth.

Commonwealth is a holding company for Bank of the Commonwealth. Its stock closed down $0.10 Thursday at $16.40.

Canadian deals fill market

On the Canadian side of the market, volume looked better.

"Volume in Canada is all right," said a sell-side source. "There are some smaller, common-share type deals, as always."

Leading the action in Canada was an agreement by Aecon Group Inc. to sell C$30 million in unsecured convertible debentures.

The underwriters on that deal will buy C$25 million on a private-placement basis with the option to buy the other C$5 million at any time after the Nov. 2 closing date.

The five-year debentures carry interest at 8.25% and may be converted into shares at any time before maturity. The conversion price is C$7.50.

Aecon, a Toronto construction and infrastructure development company, plans to use the funds to repay debt, to finance projects and to use as working capital.

Alamos Gold to sell C$24 million in stock

Another Toronto company announced a C$24 million placement.

Alamos Gold Inc. will sell to a syndicate of underwriters eight million shares at C$3. The deal has a two million share greenshoe, exercisable up to 48 hours before the closing. The deal is expected to wrap up Oct. 18.

According to a statement from the company, proceeds from the deal will fund exploration and be used for working capital and general corporate purposes.

Alamos Gold is a gold exploration company and its stock closed up C$0.10 at C$3.17.

Nuinsco's C$5 million deal

Nuinsco Resources Ltd. said Thursday it plans to raise C$5 million through the sale of flow-through shares and units comprised of one common share and a ½ share purchase warrant. The flow-share portion of the deal won't exceed C$2 million, according to the company.

The units are priced a C$0.25 per share and the flow-through shares at C$0.30. Each warrant allows for the purchase of a share at C$0.30 for two years from the anticipated Nov. 4 closing date.

The nickel exploration company plans to use the funds from the private placement for projects in Manitoba, Ontario and Quebec. The company's stock closed down C$0.005 Thursday at C$2.45.

PowerLinx downsizes private placement

PowerLinx Inc. will cut the size of its $3.18 million private placement to $1.9 million.

"The company accepted a reduced amount because of the recent share price appreciation and a delay in transmission of funds by one of the investment groups," said a company statement.

The $1.9 million private placement consists of 12.75 million shares at about $0.0671 per share with 1.9 million warrants. The warrants will net about $956,000, according to the company.

PowerLinx, a Tierra Verde, Fla. power line communication company, plans to use the funds to expand its sales force and launch a new home monitoring system.

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