VeruTEK wraps stock sale; Noreco deal oversubscribed; Intertainment unit ups converts offering

By Stephanie N. Rotondo

Portland, Ore., May 5 - Stock offerings took up a majority of the private placements in the market on Tuesday.

VeruTEK Technologies Inc. announced it settled its $2 million stock deal. The company plans to use proceeds from the non-brokered transaction to repay outstanding debt.

Norwegian Energy Co. ASA also wrapped a placement of shares. The company raised NOK 214.4 million in the oversubscribed deal.

Among other issuers, Itibiti Systems Inc., a subsidiary of Intertainment Media Inc., will upsize a deal originally announced March 3. The company originally planned to raise C$3 million via a placement of convertible debentures. Under the new terms, the company will raise C$4 million.

VeruTEK wraps stock sale

VeruTEK Technologies completed a $2 million private placement of stock, the company said Tuesday.

Proceeds from the non-brokered financing will be used to repay outstanding promissory notes. Upon repayment of the debt, the company will be debt-free.

John Collins, the company's president and chief executive officer, told Prospect News that the company was "very happy" with the outcome of the deal.

"Financially, we are in great shape and we are really in a position right now to really acquire a lot of market share," he said.

Also, Collins said the new capital would give the company the ability to go ahead with planned projects.

VeruTEK's equity (Pink Sheets: VTKT) closed unchanged at $0.50.

VeruTEK is a Bloomfield, Conn.-based developer of green technology solutions to clean contaminated sites.

Noreco deal oversubscribed

Norwegian Energy Co., better known as Noreco, announced it had settled a "substantially oversubscribed" private placement of shares.

The company sold 13.4 million shares at NOK 16.00 per share, raising a total of NOK 214.4 million.

The deal was originally announced Monday. The new shares equal approximately 9.3% of the company's outstanding share capital.

"I am very pleased with the development of Noreco over the last months, and the placement completed today ensures that we have the financial flexibility to follow up on our successes in line with our strategy," stated Scott Kerr, chief executive officer, in a statement.

Proceeds will be used for exploration and for general corporate purposes.

Noreco's stock (Oslo: NOR) closed at NOK 16.40, a decline of 40 cents, or 2.38%.

Based in Stavanger, Norway, Noreco is an oil and gas company.

Intertainment unit upsizes offering

Intertainment Media's Itibiti Systems subsidiary plans to increase a previously announced private placement of convertible debentures, the company said in a press release.

Under the new terms of the deal originally priced March 3, Itibiti will sell C$4 million of the 15% convertible notes. The original price was C$3 million.

The notes will sell at C$50,000 each and are convertible into Intertainment units at C$0.11 per unit into Itibiti common stock at C$0.70 per share.

The Intertainment units contain one common share and one warrant. The warrants are exercisable at C$0.16 for two years.

"We are extremely pleased to receive the ongoing support of Itibiti's technology and marketing partners as this has resulted in showcase opportunities with some of the world's largest and most influential brands," commented David Lucatch, president of Itibiti Systems and CEO of Intertainment Media. "Although it has taken time for the investment community to appreciate Itibiti and its revenue generating, next generation social media application, the confirmed investment interest which exceeds the original offering, given recent market conditions, is a significant achievement."

Proceeds will be used for the launch of Itibiti's voice powered social networking platform, for strategic growth opportunities and for general corporate purposes.

Intertainment's stock (TSX Venture: INT) ended unchanged at C$0.08.

Itibiti is a privately held subsidiary of Intertainment, a Toronto-based conventional and new media company.

Stock deals planned

Among other deals in the market, Futuragene plc plans to raise up to £1.5 million in a private placement of stock.

The London-based company will issue up to approximately 4.4 million ordinary shares at 34p per share to International Institute of BioScience Research and Development LLC, according to a press release.

Futuragene's equity (London: FGN) closed at 44p. Market capitalization is £16.6 million.

Meanwhile, Sonic Automotive Inc. said in a regulatory filing that it arranged a $3 million stock placement.

The Charlotte, N.C.-based automotive retailer will issue common stock at $5.74 per share to certain members of management. Settlement is expected May 7.

Sonic's shares (NYSE: SAH) gained $1.11, or 19.34%, to $6.85. Market capitalization is $249 million.

In news from Down Under, Goodwood, Australia-based Mithril Resources Ltd. is aiming to take in A$1.6 million in a stock offering.

Under the terms of the deal, the company will sell 20 million ordinary shares at A$0.08. Investors will also receive a 1-for-2 free attaching option exercisable at A$0.12 until March 30, 2012.

Mithril's stock (Australia: MTH) closed at A$0.10.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.