Plaza Bank to raise $15 million; Arafura, Power of the Dream take YA Global deal; Kodiak sells shares

By Kenneth Lim

Boston, Oct. 14 -Plaza Bank is set to take a $15 million investment from a fund to grow the company.

YA Global Investment, LP, a prominent equity financing provider, has also been active.

Arafura Resources Ltd. said it entered into a A$20 million two-year deal with YA Global, while Power of the Dream Ventures, Inc. announced the terms of its $5 million facility with the same investor.

Meanwhile, Kodiak Energy, Inc. announced a C$5 million private share offering.

Plaza Bank eyes $15 million

Plaza Bank plans to raise $15 million through a private placement of shares to Carpenter Community BancFund.

The deal involves 3 million common shares and 1.5 million warrants, offered in $10 units of two shares and one warrant. That will value each placement share at $5.

Current shareholders will also be offered units at the same terms in a separate, public offering.

Proceeds will position the bank for growth and expansion in line with its existing business plan.

The Irvine, Calif.-based bank was started in December 2005 and focuses on local businesses.

As part of the deal, former Sanwa Bank California corporate executive vice president Gene Galloway will replace Donald L. Solsby as chief executive at Plaza Bank. Former Lehman Brothers chief operating officer of small business finance Robert Forsythe will replace Solsby as president.

"Through a most difficult economy, we built a bank that has an incredible client base, quality customers, a great staff and has continued to grow while many banks have shrunk in assets or faced problems with their loans," Solsby said in a statement. "As an organizer and founder, I am amazed at what we were able to accomplish so far, and look forward to the partnership with the fund and to the special place Plaza Bank will hold in the Southern California banking community."

Plaza Bank chairman Robert Feldhake added: "Everyone at Plaza Bank has done an excellent job in building solid core deposit, loan and customer relationships. This additional investment is a great compliment to existing management, every member of staff and an active working board, as well as to our existing customers and shareholders who have supported us throughout the start up period. Now, with additional capital, we can greatly expand upon what has already been accomplished."

Arafura takes A$20 million deal

Arafura Resources said it received a A$20 million two-year committed equity financing facility from YA Global Investments.

Under the facility, YA Global is committed to buying A$20 million in Arafura shares over five years.

Subject to certain pricing parameters, the shares will be priced at the lowest daily volume weighted average price of the company's shares traded on each of the 10 trading days which follow an advance notice.

Arafura common stock (ASX: ARU) closed at A$0.43 on Tuesday, up by $0.02 or 4.65%.

Arafura will pay a 5% commission on each advance.

Arafura, formerly Arafura Resources NL, is a mineral exploration and resource development company based in South Perth, Australia.

YA Global is a fund managed by Jersey City, N.J.-based Yorkville Advisors, LLC.

"The execution of this facility with YA Global ensures the continued progression of the Nolans feasibility study and shows that even in these tough economic conditions, quality projects will attract investors," Arafura chairman Mick Muir said in a statement. "The Nolans Rare-Earth-Phosphate project is the company's flagship asset and must progress. It will become the world's premier Rare Earth supplier outside of China and an essential source of high quality phosphoric acid to the Australian fertilizer industry."

Power of the Dream offers details

Power of the Dream Ventures has provided details on its previously announced $5 million equity financing facility.

The facility involves a commitment by YA Global Investments, LP to buy $5 million of Power of the Dream common shares at 93% of the applicable market price. YA Global also has a warrant to buy up to an additional about 4.03 million shares at $0.29 until Oct. 8, 2013.

Power of the Dream common stock (OTCBB: PWRV) rose 5% or $0.02 to close at $0.42 on Tuesday.

Proceeds will be used to continue the development of the company's current technology portfolio and to acquire additional technologies.

Power of the Dream is a technology holding company based in Budapest, Hungary.

Kodiak offers shares

Kodiak Energy said it plans to sell C$5 million of its common stock through private hard and flow-through financing deals.

The company will sell up to C$1 million in common shares and up to C$4 million in flow-through common shares. Kodiak common stock (TSX: KDK) closed at C$0.85 on Tuesday, up by 28.79% or $0.19.

There is an over-allotment option for a further C$1 million.

Proceeds will be used to fund ongoing exploration activities and for general working capital purposes.

Kodiak Energy is an oil and natural gas exploration company based in Calgary, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.