Canexus raises C$86 million; China Security closes stock offering; Sierra Bancorp gets funding

By Stephanie N. Rotondo

Portland, Ore., Aug. 31 - Several private placement deals were completed Monday as the month of August drew to a close.

Canexus Income Fund was one of the day's largest financings. The company said it raised C$40 million from a placement of convertible debentures, along with another C$46 million bought deal of a second series of convertibles. The company will use proceeds to fund growth.

Meanwhile, China Security & Surveillance Technology Inc. said it pocketed $25.35 million from a registered direct offering of equity. The raised funds will be used to repay debt, thereby improving the company's overall financial position.

Sierra Bancorp also sold stock in its effort to raise just over $21 million. Proceeds will be used as working capital for Bank of the Sierra.

Marengo Mining Ltd. is planning a A$5.46 million placement of equity, the company announced. In addition to the Australian financing, the company also said it raised more than C$14 million in a Canadian deal.

And, Barra Resources Ltd., another Australian company, said it was planning a A$3.5 million private stock sale.

Canexus brings in C$86 million

Canexus Income Fund raised C$40 million from a private placement of convertible debentures, the company said.

Canexus issued the 8% series 2 convertible unsecured subordinated debentures to Nexen Inc. The notes are convertible into limited partnership units.

The company also raised C$46 million through a bought-deal financing of 8% series 1 convertible unsecured subordinated debentures.

Proceeds will be used to fund growth, to repay existing debt and for general corporate purposes, the company said in a press release.

"We've got a number of projects going on and this is one of our tools to help finance that," said Gary Kubera, president and CEO, in an interview with Prospect News.

Kubera also noted that investors had reacted positively to the deal.

"It was readily placed," he said, noting also that the capital was "trading up in the open market."

Canexus' shares (Tornoto: CUS.UN) traded up to C$4.75 before settling back in to C$4.65, a loss of 10 cents, or 2.11%. Market capitalization is C$158 million.

Canexus Income Fund is a Calgary, Alta.-based open-ended trust.

China Security closes direct offering

China Security & Surveillance Technology closed on a $25.35 million registered direct offering of stock, according to a press release.

The company sold approximately 4.05 million common shares at $6.25 per share. In addition, investors received warrants for another 1.01 million shares, exercisable at $8.62 for one year.

Proceeds from the offering will be used to restructure notes issued to Citadel Equity Ltd. Any remaining funds will be used for working capital and general corporate purposes.

"We are very pleased to announce the closing of this registered direct offering," stated Guoshen Tu, chief executive officer, in the release.

"We believe this transaction, together with our announced restructuring of the guaranteed senior unsecured convertible notes, will further strengthen our balance sheet and improve our capital structure.

"We are encouraged by the strong interest and solid participation by reputable long-term shareholders in our offering. As we continue to execute our strategic growth plan, we aim to deliver strong, sustainable, long-term financial performance, and ultimately to reward our existing and new investors with shareholder value," Tu said.

China Security's stock (NYSE: CSR) dropped 20 cents, or 2.98%, to $6.52.

China Security & Surveillance Technology is a Shenzen, China-based provider of digital surveillance technology.

Sierra Bancorp completes financing

Sierra Bancorp pocketed $21.29 million from a private placement of common shares, according to a regulatory filing.

The company sold approximately 1.93 million shares at $11.00 each.

Proceeds from the financing "will be available for general corporate purposes and to support ongoing organic growth of Bank of the Sierra," the company said in an Aug. 27 press release announcing the deal.

"This capital raise confirms that, even in troubled economic times, disciplined banks, like Bank of the Sierra, with sound business models and an outstanding management team can successfully access the capital markets," said Jim Holly, CEO, in the Aug. 27 release.

"The proceeds of this offering further strengthens our already strong capital position and provides us the additional resources to continue to grow and support the businesses and communities we serve," Holly said.

Sierra's stock (Nasdaq: BSRR) fell 36 cents, or 2.74%, to $12.77. Market capitalization is $124 million.

The bank holding company is based in Porterville, Calif.

Marengo announces Australian deal

Marengo Mining, a West Perth, Australia-based Papua New Guinea-focused mining company, announced a A$5.46 million private placement of equity.

The company intends to sell approximately 57.45 million of the shares at A$0.095 per share.

Also, the company said it closed on a C$14.8 million bought-deal financing. Marengo sold 172.5 million common shares at C$0.086.

"It's really quite exciting," said Victoria Russell, who handles investor relations for the company. Russell said the new deal is expected to close within the week.

Proceeds will be used to complete a definitive feasibility study, she added, as well as for exploration on the company's various properties.

Russell said that Marengo was "delighted" by the reaction to both financings, noting that the deals had attracted "prominent investors," including a former Papua New Guinea prime minister and a mining minister.

"So that gives us quite a lot of credibility within the country," she said.

"It's a very positive statement for the company and to be able to raise money at this time," she added.

Marengo's stock (Australia: MGO0 closed at A$0.105.

Barra plans stock sale

In other news from Down Under, Barra Resources said it would take in A$3.5 million via an oversubscribed placement of stock.

The company sold ordinary shares at A$0.125 to Patersons Securities Ltd.

"The excellent demand for the placement reinforces the strong market interest in our Mt. Thirsty Project and our gold project portfolio," remarked Dean Goodwin, managing director, in a news release.

"These funds will provide us with the opportunity to step up nickel sulphide drilling at Mt. Thirsty, push ahead with pre-feasibility work over the shallower oxide resource and continue along strike and infill drilling at the Phillips Find Gold Project."

The company said in the release that its cash position upon completion of the deal would be A$4.5 million.

Barra's shares (Australia: BAR) ended at A$0.155.

Barra Resources is an Applecross, Australia-based gold, nickel and cobalt exploration and production company.

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