Leisure Canada aims for C$20 million; Digital Angel secures SEDA; Chaarat Gold to issue equity

By Stephanie N. Rotondo

Portland, Ore., July 13 - Leisure Canada Inc. brought one of the day's biggest deals to market Monday.

The hotel operator announced a plan to raise up to C$20 million. The company will issue equity units to raise the funds, with C$5 million making up the original deal and C$15 million making up the greenshoe.

Elsewhere, Digital Angel said it secured a standby equity agreement with Yorkville Advisors LLC. The investor will be required to purchase common shares at a 4% discount over the next two years.

Chaarat Gold Holdings Ltd. plans to issue new equity in its effort to raise £5.62 million. The shares will be sold to one investor.

Among completed deals, Itibiti Systems Inc. closed on a C$1.42 million private placement of convertible debentures. The deal had originally priced at C$3 million and was later upsized to C$4 million.

Synergy Resources Corp. also wrapped a placement of units. The company took in $3 million.

Leisure Canada aims for C$20 million

Leisure Canada could take in up to C$20 million in the company's planned private placement of units.

The Vancouver, B.C.-based Cuban hotel operator said it will issue 25 million at C$0.20 per unit, for total proceeds of C$5 million. The underwritten deal also includes a C$15 million greenshoe.

Each unit will hold one common share and one half-share warrant. The whole warrants are exercisable at C$0.25 until Dec. 31, 2010.

Proceeds will be used to further advance the company's existing properties in Cuba and for general corporate purposes. Settlement is expected by July 30.

Calls made to the company seeking comment went unreturned Monday.

Leisure's stock (TSX Venture: LCN) gained 2.5 cents, or 12.5%, to C$0.225. Market capitalization is C$12.1 million.

Among other hotel owners, London-based Puma Hotels plc said it raised £20 million via a private placement of convertible preference shares.

The 7% shares convert to ordinary shares on a 1 for 1 basis. The Hotel Corp. plc purchased approximately £11.77 million of the shares.

Puma Hotels is privately held.

Digital Angel secures SEDA

Digital Angel orchestrated a $5 million two-year standby equity distribution agreement with Yorkville Advisors LLC, according to a press release.

Under the terms of the SEDA, Yorkville will buy common shares in regular tranches at a 4% discount to market price.

"We believe that having the ability to raise up to $5 million of common stock on such advantageous terms should significantly improve our balance sheet and help us to develop and market new and existing products, which in turn should enhance our profitability," commented Joseph J. Grillo, chief executive officer of Digital Angel, in the release. "We would like to thank Yorkville Advisors for their confidence in our management team and business plan."

"Yorkville sees great potential in the investment opportunity presented by Digital Angel," added Michael Rosselli, managing director of Yorkville Advisors. "We believe that Joe Grillo and the rest of his management team have strategically aligned the company to meet the growing demand for its core products."

Proceeds will be used for working capital, among other things.

Digital Angel's equity (Nasdaq: DIGA) improved 8 cents, or 5.84%, to $1.45. Market capitalization is $25.3 million.

Digital Angel is a South St. Paul, Minn.-based producer of animal identification and emergency identification solutions.

Chaarat to issue new equity

Chaarat Gold Holdings announced a £5.62 million private placement of stock Monday.

The company plans to sell approximately 22.47 million ordinary shares at 25p per share. The shares will be purchased by China Nonferrous Metals International Mining Co. Ltd.

"This is a significant milestone for our company," said Dekel Golan, CEO of Chaarat, in a statement. "This investment will enable us to complete the feasibility study and all other studies required for taking the project towards development. CNMIM, being very familiar with the Chinese mining environment will be able to assist in introducing the company to financial institutions interested in financing projects such as Chaarat and to various contractors and service providers required for such development."

"We are delighted to be associated with Chaarat and look forward to working with the existing team to drive forward this exciting project," concluded David Tang CEO of CNMIM.

Chaarat's shares (London: CGH) closed at 18p.

Chaarat Gold Holdings is a Tortola, Virgin Islands-based mineral exploration company.

Itibiti closes converts deal

Interntainment Media Inc.'s subsidiary, Itibiti Systems, wrapped a C$1.42 million placement of 15% convertible debentures.

The convertibles were sold at C$50,000 each and are convertible into Interntainment units at C$0.11 per unit or into Itibiti common stock at C$0.70 per share. Each Interntainment unit contains one common share and one warrant. The warrants are exercisable at C$0.16 for two years.

The deal originally priced at $3 million on March 3 and was upsized to C$4 million on May 5.

Additionally, "given the recent increase in valuation of Interntainment, the company has chosen to minimize dilution and will review any future financing opportunities based on current market conditions," the company said in a statement.

The future financings include a potential C$2.1 million offer from a private equity firm. The offer provides for the conversion of a C$2 million term loan into Itibiti common stock at C$0.70 per share, along with an additional C$1.1 million capital infusion.

Also, the company has canceled an offering originally announced May 21. The offer had expired and no subscriptions were exercised.

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

Synergy wraps equity placement

Synergy Resources settled a $3 million private equity unit placement, the company said.

The company sold 1 million units at $3.00 per unit. Each unit contained two common shares, one series A warrant and one series B warrant. The series A warrants are exercisable at $6.00 per share and the series B warrants are exercisable at $10.00 per share.

Both series of warrants expire on Dec. 31, 2012 or within 20 days of notification that the stock has traded higher than $7.00 on the series A warrants and higher than $12.00 on the series B warrants for any 10 of 20 consecutive trading days.

Synergy said that the funds, coupled with another completed equity raising, brings its total financing proceeds to $5.5 million. The funds will be used to further develop its 38 oil and gas permits.

"With the successful completion of the private offering and approved permits, Synergy is in a position to move forward with its 2009/2010 drilling program," stated Ed Holloway, CEO, in a press release.

Synergy's equity (OTCBB: SYRG) ended unchanged at $1.65.

Synergy Resources is a development stage domestic oil and natural gas exploration and production company.

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