Southeastern settles stock, notes; Canacol wraps tranche; BioExx, Clean Air close equity deals

By Stephanie N. Rotondo

Portland, Ore., May 14 - Several companies completed private placement deals on Thursday, including Southeastern Bank Financial Corp.

The bank holding company sold stock and notes to raise a total of $12.05 million. The company also announced that it withdrew its application to the TARP Capital Purchase Program.

Canacol Energy Ltd. wrapped the first tranche of its twice-upsized C$6 million placement. The company sold C$4.35 million worth of equity units.

Bio-Extraction Inc. meanwhile took in C$5.3 million by issuing stock in a deal that included a fully exercised greenshoe. Clean Air Power Ltd. also sold stock in its effort to raise £2.38 million.

Among deals coming to market, Shaw River Resources Ltd. announced a plan to raise A$1.93 million. The company will sell stock, of which the company's largest shareholder has already committed $800,000.

Ascent Resources plc said it negotiated a £5 million equity line of credit. The company said the facility gives it more financial flexibility.

Southeastern settles stock, notes sale

Southeastern Bank Financial wrapped a $12.05 million placement of stock and notes, the company said.

The company sold 682,894 common shares at $13.25 per share, raising a total of $9.05 million. The company also raised $3 million by issuing an 8% subordinated debenture.

Furthermore, Southeastern withdrew its TARP Capital Purchase Program application.

"Although we are well-capitalized and have adequate loan loss reserves, we wanted to raise additional capital as a prudent hedge against a prolonged recession," said R. Daniel Blanton, president and chief executive officer, in a press release.

"Initially, we applied to the Treasury for a TARP investment. However, our board determined that the best interest of the company and its shareholders would be served by withdrawing our TARP application and, instead, raising capital in a private placement that would provide more flexibility and predictability for the company than the terms of a government investment under the TARP Capital Purchase Program presently provide," Blanton said.

Southeastern's shares (OTCBB: SBFC) closed unchanged at $13.05. Market capitalization is C$83.8 million.

Southeastern Bank Financial is an Augusta, Ga.-based holding company for Georgia Bank & Trust and Southern Bank & Trust.

Canacol wraps first tranche

Canacol Energy settled the first tranche of its C$6 million private placement of units, according to a press release.

The company raised C$4.35 million in the tranche, selling 34.82 units. The units contain one common share and one half-share warrant and were sold at C$0.125 per unit. Each whole warrant is exercisable at C$0.20 for two years.

The company originally priced the deal at C$5 million on April 28. The deal was then upsized to C$5.3 million on May 7 and again on May 12.

"We are very pleased to have closed our financing so quickly," said Charle Gamba, president and chief executive officer, in the release. "These funds, together with the $9 million to be advanced by Gemini Oil and Gas Advisors, allow us to execute our development drilling and workover activities in Colombia, which will boost oil production and cash flow in 2009. A portion of the funds will also be used to advance our exploration projects in Guyana and Brazil for 2010 seismic acquisition and drilling."

The company expects to close the second tranche of the financing on May 21.

Canacol's stock (TSX Venture: CNE) remained at C$0.14. Market capitalization is C$18.2 million.

Canacol Energy is a Calgary-based independent onshore oil exploration company.

BioExx closes deal

Bio-Extraction took in C$5.3 million via a private placement of stock, the company said.

The Toronto-based company issued 10.2 million shares at C$0.52 per share. Of those shares, 4.4 million were part of a fully exercised greenshoe.

Proceeds form the financing will be used, in part, for capital expenditures at its Saskatoon plant.

"The Saskatoon plant is now generating regular sales through the shipping of truckload quantities of 100% of its production," the company said in a statement.

"Quality of the products has steadily increased since start-up, with meal quality now meeting or exceeding market specs, and oil expected to soon meet or exceed premium specs... Management expects that certain phase 2 components which are scheduled to be installed in the coming weeks should further increase volumes and unit prices, thus moving the company closer to operating breakeven at the plant. Crush Margins remain healthy with futures markets pointing to continued strength. In the interim, engineering and procurement work continues at a strong pace towards phase 2 extraction startup in mid-Q3, followed closely by phase 3 proteins."

BioExx's equity (TSX Venture: BXI) dropped 4 cents, or 6.78%, to C$0.55. Market capitalization is C$60.2 million.

Bio-Extraction develops and commercializes extraction technology.

Clean Air completes equity placement

Clean Air Power completed a private placement of shares, taking in £2.38 million, according to a press release.

The London-based company sold approximately 10.9 million common shares at 21.85p per share. Approximately 5.4 million warrants were also issued.

"I am very pleased to have concluded this financing package, ahead of schedule, under the present difficult market conditions," commented John Pettitt, CEO of Clean Air Power. "We believe this further endorses our belief in the exciting future prospects of the company."

Clean Air's equity (London: CAP) finished at 26p. Market capitalization is £12.4 million.

Clean Air Power develops and markets Dual-Fuel solutions to power heavy goods vehicles.

Shaw River to sell shares

Australian company Shaw River Resources plans to raise A$1.93 million by privately placing stock.

The West Perth-based mineral exploration company will sell 21.39 million common shares at A$0.09 per share. One of the company's major shareholders, Atlas Iron Ltd., has agreed to purchase A$800,000 of the shares to maintain its stake in the company.

"With Shaw River's existing cash resources, this capital raising will allow the company to accelerate the current exploration program on its highly prospective manganese projects in Western Australia's Pilbara region," the company said in a press release. "Shaw River recently commenced its maiden drilling program at its Baramine Manganese project in the Pilbara."

Shaw River's stock (Australia: SRR) closed at A$0.125.

Ascent arranges credit line

Ascent Resources arranged a £5 million three-year equity line of credit with GEM Global Yield Fund Ltd., the company announced.

Under the terms of the facility, Ascent may request that GEM buy shares at a maximum of five times the average daily trading volume for the 15 trading days immediately preceding the request. GEM, for its part, may then buy between 50% and 130% of the subscribed shares. The fund also has the option to purchase up to 200% of the shares, with company consent.

The equity will be priced at a 9% discount to the average closing mid-price of the shares as of the 15 days trading days preceding the subscription.

Additionally, GEM received warrants for 15 million shares at a strike price of 10.16p for five years.

"This arrangement fits well into our overall financing strategy and provides us with funding certainty and flexibility," said Jeremy Eng, managing director, in a statement. "We have an extensive portfolio of production and prospective exploration assets across Europe and this facility will assist in developing these assets. Additionally, the facility will also enable us to pursue further exploration projects not considered under our agreement with San Severina, at a time where there are distinct opportunities of acquiring distressed assets.

"The JV is progressing well and we look forward to announcing significant transactions which will provide both Ascent and San Severina with equity interests in oil and gas projects primarily outside of Ascent's European focus area in the near future," he continued. "These projects will underpin our partnership, in which San Severina aims to invest an initial €100 million in oil and gas producing, appraisal or development projects."

Ascent's stock (London: AST) closed at 8.8p. Market capitalization is £24.8 million.

Ascent Resources is a London-based oil and gas company.

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