Tiger plans A$22 million stock sale; Ladenburg to raise $14 million; Provision seals financing

By Stephanie N. Rotondo

Portland, Ore., June 2 - Though mining companies were still prevalent in Wednesday's PIPE market, other sectors - including financial, technology and pharmaceutical - were also represented.

Tiger Resources Ltd. said it would take in nearly A$22 million from a private placement of equity. The company is also planning a share purchase plan and proceeds from both transactions will be used for development and drilling activities.

In the financial realm, Ladenburg Thalmann Financial Services Inc. announced a $14 million private placement of stock. Several investors have reportedly committed to participating, including a prominent Taiwanese businessman.

Provision Holding Inc. said it had secured a $5 million investment from Socius Capital Group Inc. According to a company spokesperson, the financing will function a lot like a credit facility.

Among completed financings, Coro Mining Corp. took in C$4.5 million from a private placement of units. Proceeds will be used in part to fund an upcoming option payment.

And, Cynapsus Therapeutics Inc. amended the terms of a previously announced private placement of units. The company lowered the price per unit, attributing the decrease to market conditions.

Tiger plans ordinary share sale

Tiger Resources announced an A$21.85 million private placement of equity, along with a share purchase plan for existing investors.

The shares sold in the private placement will be issued to institutional clients of Ambrian Partners Ltd. and to "certain existing major shareholders," according to a press release.

The Perth, Western Australia-based company will sell a total of 121.4 million ordinary shares at A$0.18 per share - also the price per share for the share purchase plan.

The share price represents a 15% discount to the company's five-day volume-weighted average price.

The deal will come in two tranches, with approximately 58.84 million shares coming in the first portion and the remaining 62.55 million shares in the second.

"Tiger intends to allocate the net proceeds of the capital raising, and proceeds of the proposed share purchase plan, towards project development costs for the Kipoi project, resource and step out drilling at Tiger's grassroots copper discovery at the 100% owned Lupoto Project and the balance for general working capital purposes," the company said in the release.

Tiger's stock (Australia: TGS) closed at A$0.215.

Ladenburg to raise $14 million

Ladenburg Thalmann is seeking $14 million via a private placement of common stock, according to a press release.

Participating investors include entities controlled by Samuel Yin, chairman and chief executive officer of Ruentex Group, as well as certain executive officers and directors of Ladenburg.

The New York-based financial services firm will sell 14 million of the shares at $1.00 each.

"We believe Ladenburg will benefit from Dr. Yin's extensive business knowledge of the financial sector and other businesses in Greater China, a region Ladenburg believes will be an important contributor to its growth," stated Dr. Phillip Frost, chairman of Ladenburg, in the release.

Ladenburg's equity (Amex: LTS) fell 6 cents, or 4.05%, to $1.42. Market capitalization is $234 million.

Provision seals credit line-style financing

Provision Holding, a Chatsworth, Calif.-based developer of 3D video displays, negotiated a $5 million private placement of series B preferred stock, the company said in a regulatory filing.

The deal was inked May 26.

Socius Capital Group Inc. is providing the investment. Provision will sell up to 500 of the preferred shares to the investor at $10,000 each.

Socius will also receive 135% warrant coverage. The warrants will be exercisable for five years at 135% of the share purchase price.

According to Lora Barabash of Ambriel Advisors, the transaction will function more like a credit line than an actual private placement.

"They haven't decided when/if they will draw down on that," she said in an interview with Prospect News. "If they need to have it, they have access to it."

Barabash said the funds are "more of an insurance policy" should the company need working capital.

Provision's shares (OTCBB: PVHO) were unchanged at $0.10. Market capitalization is $3.14 million.

Coro pockets C$4.5 million

Coro Mining wrapped a non-brokered private placement of units, raising C$4.5 million.

Benton Resources Corp. invested C$1.76 million.

Coro sold 12.5 million units at C$0.36 each. The units held one common share and one half-share warrant.

The whole two-year warrants are exercisable at C$0.50 in the first year and at C$0.65 in the second.

"We are very pleased with the support that our existing shareholders and others have shown in supporting this financing and the continued faith they have in the San Jorge permitting process and the future prospects of the company," said Alan Stephens, president and chief executive officer, in a press release.

Proceeds will be used for working capital and to pay a $2 million option payment toward the San Jorge Project purchase agreement.

Coro's stock (Toronto: COP) dipped a deuce, or 5.88%, to C$0.32. Market capitalization is C$29.3 million.

Coro Mining is a Vancouver, B.C.-based base and precious metals exploration company.

Cynapsus alters deal terms

Cynapsus Therapeutics, formerly known as Cannasat Therapeutics, said it had amended the terms of a previously announced C$2.5 million private placement of units.

The deal originally priced April 7.

The Toronto-based medicinal cannabis researcher changed the price per unit to C$0.075 from C$0.10. The company said the price alteration was "due to market conditions."

Calls seeking further comment were not returned Wednesday.

Each of the units will contain one common share and one warrant, which is exercisable at C$0.125 for two years.

Proceeds will be used for research and development and for working capital.

Cynapsus' equity (CTH) held steady at C$0.075. Market capitalization is C$6.72 million.

© 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.