IND plans convertible preferred sale; Global Resource gets credit line; Gastem to place units

By Stephanie N. Rotondo

Portland, Ore., Nov. 20 - It was a busy end-of-week day for the private placement market Friday, with many deals from several sectors emerging.

And many of the day's issuers were Canadian.

IND DairyTech Ltd. brought a C$30.8 million private placement of convertible preferred stock to market. The deal has one investor, SAIF Partners III LP.

Meanwhile, Global Resource Corp. said it inked a deal with AGS Capital Group for a $10 million equity credit line. The company said the three-year agreement would provide stability as it expanded its "global footprint."

Gastem Inc. is looking to raise C$5 million from a placement of units. Argentex Mining Corp. is also planning a unit placement, for proceeds of C$4 million.

Nextraction Energy Corp. settled the first tranche of its private placement of units, taking in nearly half of its previously announced C$6 million deal.

Also among the day's deals was a C$2.53 million unit placement from Red Pine Exploration Inc. The funds will be used for drilling activities.

IND to commence convertibles sale

IND DairyTech announced a C$30.8 million private placement of convertible preferreds.

The company will sell up to 59.66 million of the series A preferred shares at an average of C$0.52 per share to SAIF Partners III LP. The shares are convertible on a 1 for 1 basis at an average conversion price of C$0.52 per share.

The deal will come in two tranches, with approximately 36.29 million shares being sold initially for proceeds of C$15.4 million. That portion is expected to settle in December.

In the second tranche, SAIF is required to purchase another 9.34 million shares, for total proceeds of C$6.15 million. SAIF will also have an option to increase the tranche by 14.02 million shares, or C$9.25 million.

Should SAIF exercise its full rights, its holdings in the company will equal 33.6%.

Proceeds will be used for business expansion, working capital and capital expenditures.

Calls seeking comment were not returned Friday.

IND's stock (TSX Venture: IND) finished unchanged at C$0.50. Market capitalization is C$57.1 million.

IND DairyTech is a Delta, B.C.-based raw milk producer.

Global Resource gets credit line

Global Resource, a West Berlin, N.J.-based petrochemical technology company, secured a $10 million line of credit from AGS Capital Group, according to a press release.

AGS will purchase common shares in the company over the course of three years.

"Our management team is very excited to secure this funding from, a well-respected institutional investor with a strong record of investment," stated, Ken Kinsella, chief executive officer, in the release.

"The new funding provides us with the working capital needed to commercialize our microwave technology and begin to further roll out our strategic vision of converting waste to energy utilizing various feedstocks. Our funding agreement provides us with financial stability as we continue to expand our global footprint and seek to secure new contracts with waste management and recycling firms."

Global's equity (Pink Sheets: GBRC) gained 3 cents, or 3.41%, to $0.91. Market capitalization is $58.5 million.

Gastem to raise C$5 million

Gastem arranged a C$5 million brokered private placement of flow-through units.

Under the terms of the transaction, Gastem will issue approximately 7.69 million of the units at C$0.65 each. The units will consist of one flow-through common share and one common share warrant. Warrants are exercisable at C$0.85 for 18 months.

Proceeds will be used for exploration activities in Quebec.

Calls seeking comment were not returned Friday.

Gastem's shares (TSX venture: GMR) improved by a penny, or 2.00%, to $0.51. Market capitalization is C$31.7 million.

Gastem is a Montreal-based oil and gas exploration company.

Argentex seeks C$4 million

Argentex Mining will conduct a C$4 million private placement of equity units, the company said in a news release.

The Vancouver, B.C.-based company will sell 5.72 million units containing one common share and one half-share warrant. Each unit will be issued at C$0.70 per unit and whole warrants are exercisable at C$0.90 for two years.

Proceeds will be used for exploration, working capital and general corporate purposes. Settlement is expected by Nov. 27.

The company declined to comment.

Argentex's equity (TSX Venture: ATX) ended steady at C$0.80. Market capitalization C$29.4 million.

Argentex is a mineral exploration company.

Nextraction wraps first tranche

Nextraction Energy pocketed C$2.82 million in the first tranche of its previously announced private placement of units.

The deal originally priced at C$6 million on Oct. 26.

The junior oil and gas company will sell a total of 8 million units at C$0.75 each. A total of approximately 3.76 million were sold in the initial portion.

Each unit contains one common share and one half-share warrant. Whole warrants are exercisable at C$0.95 for one year.

"We are pleased to complete our first funding round as a new oil and gas company with a core of solid investors," remarked Mark S. Dolar, president, in a statement. "The funds raised will allow us to make the necessary deposit to our partner and operator, Vantage Energy Green River, LLC, for the drilling costs of the Noble 6-24 well located on the Pinedale Anticline. The drilling of this well will commence in early 2010.

"This financing, along with our current working capital, allows us to advance our company into the development stage of our current projects, and further our plans for a very exciting 2010."

Nextraction's shares (TSX Venture: NE) held in at C$0.85. Market capitalization is C$6.47 million.

Nextraction Energy is based in Vancouver, B.C.

Red Pine to raise exploration funds

Red Pine Exploration intends to raise C$2.53 million via a private placement of units.

Part of the deal is non-brokered.

Red Pine will sell 17 million flow-through units at C$0.09 each. Also, 12.5 million common share units will be issued at C$0.08 each.

The flow-through units will hold one flow-through share and one half-share warrant. The regular units will contain one common share and one warrant.

Whole warrants are exercisable at C$0.15 for two years.

Proceeds will be used for exploration and general corporate purposes. The deal is expected to close in late November.

Brent Nykoliation, vice president of business development, told Prospect News that the company had already received interest from investors. He also declined to say how much of the deal would be non-brokered, as it had not yet finalized those details.

Red Pine's equity (TSX venture: RPX) fell half a cent, or 5.56%, to C$0.085. Market capitalization is C$7.93 million.

Red Pine Exploration is an Ottawa, Ont.-based gold exploration company.

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