Bay Commercial Bank aims for $70 million; Castillian plans C$1.5 million stock, unit placement

By Stephanie N. Rotondo

Portland, Ore., April 28 - The PIPE market slowed down to a near halt Wednesday and the deals that did come varied greatly in size.

Bay Commercial Bank announced a $70 million private placement of stock. The deal includes a $10 million greenshoe and could be increased to up to $100 million if investor demand warrants it.

Among smaller transactions, Castillian Resources Corp. said it wanted C$1.5 million from a private placement of stock and units. That deal also includes a greenshoe, for C$500,000. The proceeds will be used for exploration work.

Bay Commercial aims for $70 million

Bay Commercial Bank announced a $70 million private placement of equity.

The Walnut Creek, Calif.-based company will sell 7 million shares on a best-efforts basis at $10.00 per share.

The deal also includes an over-allotment option for 1 million shares. And, if the financing is oversubscribed in excess of $80 million, the company will issue up to $20 million - or 2 million shares - of series A mandatory convertible cumulative non-voting preferred stock.

The preferred shares have a liquidation value of $10.00 each and are automatically convertible into one common share.

Proceeds will be used to expand operations via FDIC-assisted transactions or privately negotiated acquisitions, branch acquisition, organic growth and other business opportunities.

Calls seeking further comment were not returned Wednesday.

Bay Commercial's stock (OTCBB: BCML) gained 75 cents, or 8.43%, to $9.65.

Castillian plans stock, unit sale

Castillian Resources is looking to raise C$1.5 million via a private placement of units and stock, according to a press release.

The deal includes a C$500,000 greenshoe.

Castillian will sell 10 million flow-through common shares at C$0.10 each, for total proceeds of C$1 million.

The company will also sell 5 million units at C$0.10 each for the remaining C$500,000. The units will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.20 for two years.

Proceeds will be used for exploration activities at the Hope Brook Gold Project, which is located off the coast of Newfoundland. Settlement is expected by May 31.

Calls seeking further comment were not returned Wednesday.

Castillian's equity (TSX venture: CT) closed unchanged at C$0.09. Market capitalization is C$9.67 million.

Castillian Resources is a Toronto-based mineral exploration company.

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