uBid.com plans $10 million; Stornoway prices C$22 million; West Hawk wraps C$11.63 million

By Devika Patel

Knoxville, Tenn., July 16 - uBid.com Holdings, Inc. announced it has negotiated a $10 million committed equity financing facility agreement with Fusion Capital Fund II, LLC; Stornoway Diamond Corp. plans to sell C$22 million of its common shares to Agnico Eagle Mines Ltd. and Lorito Holdings Ltd., raising funds to buy back C$20 million in convertible debentures held by the investors; and West Hawk Development Corp. took in C$11.63 million by selling stock and units, in a deal aimed to raise funds for exploration, development and the company's natural gas project in Colorado.

uBid.com bids for $10 million

uBid.com said Fusion has committed to buy $10 million of the Chicago-based online auctioneer's common stock over the next two years.

Under the agreement's terms, Fusion is committed to purchase common shares, without any fixed discount but a floor price of $0.75, in tranches of between $60,000 and $1 million.

Fusion also received 230,074 common shares as a commitment fee.

uBid.com will use the proceeds to further implement its recently announced strategic change to focus on liquidating excess inventories.

"We are very excited to establish this funding relationship with Fusion Capital, a well-respected institutional investor with a strong record of investment," uBid.com's chief executive officer Jeff Hoffman said in a press release. "This new funding should help give us the ability to further roll out our strategic vision to focus on excess inventory solutions."

The company's shares (OTCBB: UBHI) rose 5.36%, or $0.15, to close at $2.95 on Wednesday.

Stornoway to see C$22 million

Stornoway announced it will sell C$22 million in stock to Agnico Eagle and Lorito, who currently hold C$20 million of the company's convertible debentures.

The proceeds from the 24,444,444 common shares being sold at C$0.90 per share will be used to buy back the debentures, along with a C$2 million early redemption payment.

"We are extremely pleased to be able to settle this outstanding debt at a significant premium to market and see it is a strong endorsement of Stornoway's strategy to grow and develop a significant Canadian diamond resource base," Stornoway's chief executive officer Eira Thomas commented in the release.

The Vancouver, B.C.-based diamond exploration and development company's shares (Toronto: SWY) soared 24.14%, or $0.07, to close at C$0.36 on Wednesday.

West Hawk sells C$11.63 million

West Hawk completed a C$11.63 million private placement of stock and units, which priced for C$10.65 million with a 15% greenshoe on June 6.

The company sold 17,015,714 flow-through common shares at C$0.35 apiece for C$5.96 million and 18,904,516 units of one common share and one half-share warrant at C$0.30 per unit for C$5.67 million.

Each whole warrant will be exercisable at C$0.50 for two years.

The securities were sold via agent Union Securities Ltd., and proceeds will be used to fund the Vancouver, B.C.-based company's exploration programs in Canada, development expenditures for the company's coal gasification and coal-to-liquids plans, its natural gas project in the Piceance Basin, Colo., and for general working capital purposes.

"We very much appreciate the efforts of Union Securities in helping to advance the British Columbia, Groundhog Project and the Colorado Gas Project," West Hawk's president and chief executive officer Dr. Wm. Mark Hart said in a news release.

The coal, oil and natural gas exploration company's shares (TSX Venture: WHD) remained unchanged on Wednesday, to close at C$0.285.

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