Great Eastern seals £28.8 million; SQI to issue stock; Arcadia Resources plans direct offering

By Stephanie N. Rotondo

Portland, Ore., Nov. 9 - Deals ranged from big to small in Monday's private placement market, and came from a variety of sectors.

Great Eastern Energy Corp. Ltd. said it completed a financing for £28.8 million. The company sold depositary receipts, which are good for half an ordinary share.

Meanwhile, SQI Diagnostics Inc. announced it would raise C$15 million via a private placement of stock. The deal also includes a C$3 million over-allotment option.

Arcadia Resources Inc. brought a registered direct offering to market. The company plans to take in $11.1 million from the deal and the funds will be used to advance the company's pharmaceutical segment, according to a company spokesperson.

And Western Energy Services Corp. settled its private placement of units, bringing in C$3 million.

Trafina Energy Ltd. announced it had increased the size of its previously announced private placement of stock and units. The company now intends to raise C$2.5 million.

Great Eastern seals £28.8 million

Great Eastern Energy pocketed £28.8 million from the sale of depositary receipts held by YKM Holdings International, according to a press release.

The company sold the securities at 400p each. Each receipt is equal to half an ordinary share.

Proceeds will be used for drilling activities.

"We are delighted with the strong support from our existing and new investors," said Yogendra Kr. Modi, chairman and chief executive officer, in the release. "The placing proceeds will be used towards the drilling of a further 43 wells, fracturing 70 wells and for a further gathering station and pipeline."

Great Eastern's equity (London: GEEC) closed at 415p. Market capitalization is £455 million.

Great Eastern Energy is a Gurgaon, India-based coal bed methane explorer.

SQI to issue stock

SQI Diagnostics, a Toronto-based medical systems automation company, said it would raise C$15 million via a private placement of common shares.

The deal also includes a C$3 million greenshoe.

The price per share will be determined within the market context, the company said in a press release.

Proceeds will be used to commercialize SQI's IgXplex assay and platform development pipeline, as well as for working capital for SQiDworks platform placements and the expansion of sales, marketing and manufacturing.

Settlement is expected by Dec. 1.

The company declined to give further comment.

SQI's stock (TSX Venture: SQD) dropped 17 cents, or 4.63%, to C$3.50. Market capitalization is C$95.17 million.

Arcadia announces direct offering

Arcadia Resources will conduct an $11.1 million registered direct offering of units.

The Southfield, Mich.-based company will sell approximately 15.85 million units at $0.70 per unit. Each unit will contain one common share and one warrant equal to 0.45 shares. Whole warrants are exercisable at $0.95 for five years.

Matthew Middendorf, chief financial officer of Arcadia, told Prospect News that the proceeds would go "primarily to fund our pharmacy segments and growth." That area of the company is Arcadia's "newest fastest growing segment that has been drawing interest."

Middendorf also said that the company needed to raise money due to its cash needs.

"We have seen some improvement in our stock price in the last couple of months," he said. "So we felt it was a good opportunity, a good time to do it."

Closing is expected within a week, he added.

Arcadia's shares (Amex: KAD) fell 10 cents, or 13.33%, to $0.65. Market capitalization is $111 million.

Arcadia Resources is a provider of alternate site health care services and products.

Western Energy raises C$3 million

Western Energy Services took in C$3 million from a private placement of equity units, the company announced.

The company issued units containing convertible secured debentures and 30 million warrants.

The 7% debentures mature 24 months from the issue date. They are also convertible into common stock at C$0.10 for the first eight months, at C$0.15 for the second eight months and at C$0.20 thereafter.

Each warrant is exercisable at C$0.10 for two years.

Western Energy will use the funds for debt repayment and for other general corporate purposes.

Emails seeking comment were not returned Monday.

Western Energy's shares (TSX Venture: WRG) closed unchanged at C$0.075. Market capitalization is C$2.42 million.

Western Energy Services is a Calgary, Alta.-based service provider to the oilfields sector.

Trafina upsizes placement

Trafina Energy increased a previously announced private placement of stock and units to C$2.5 million.

The deal originally priced at C$2 million on Nov. 5.

Under the terms of the financing, Trafina will raise C$1 million on a bought-deal basis and the remainder on a best efforts basis.

The company will sell flow-through class A shares at C$0.38 per share, of which a maximum of C$1 million will be sold. Trafina will also sell units at C$0.35.

Each unit will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.45 for 18 months.

Proceeds will be used to strengthen the company's bottom line, as well as for exploration and working capital. Settlement is expected by Dec. 3.

Trafina's management did not return e-mails seeking comment on Monday.

Trafina's equity (TSX Venture: TFA-A) ended steady at C$0.40. Market capitalization is C$2.28 million.

Trafina Energy is a Calgary, Alta.-based oil and natural gas exploration company.

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