Unbridled raises C$5 million; Energy Focus gets $10.2 million; Littlefield obtains Value Fund commitment

By Kenneth Lim

Boston, March 19 - Unbridled Energy Corp. said its C$5 million non-brokered sale of units will last for a few months, after which it may have to seek more capital.

Energy Focus Inc. said its existing shareholders invested an additional $10.2 million in the company to fund general purposes as the company announced new business from a major retail chain.

Littlefield Corp. announced that it is selling $7 million worth of common stock to Value Fund Advisors LLC in a deal that will also give the fund nomination rights over one-third of the company's board.

Unbridled raises C$5 million

Unbridled Energy said it is selling C$5 million of stock-and-warrant units in a private placement.

The deal involves 16.67 million units of one common share and one half-share warrant at C$0.30 per unit. Each whole warrant is exercisable at C$0.45 for 18 months.

Unbridled common stock (TSX: UNE) closed at C$0.24 on Wednesday, lower by 11.11%, or C$0.03.

Unbridled, a Calgary, Alta.-based oil and natural gas exploration company, said it will use the proceeds of the deal to fund its exploration and development programs in the United States and Canada and for general corporate purposes.

"Accredited investors" are taking part in the placement, Unbridled's external representative, Mark Mastiliak, told Prospect News. The decision to price the deal at a premium to market was based on market conditions at the time the private placement was conceived, he said.

The capital provides a significant boost for Unbridled, which has a number of projects in the works, Mastiliak said.

"Capital formation is always important during the early development stage of any company," he said. "We are drilling five wells in New York, three wells in Ohio and attempting a completion in the 16-21 well, as well as adding to our lease positions in Ohio, New York and in the Marcellus play in Pennsylvania. All very important as we grow our company."

Unbridled will continue to be a consumer of capital, Mastiliak suggested.

"We expect to employ the [just-raised] capital by the end of July," he said. "There are some variables in play that would allow us to delay raising equity after July. Most certainly, we have additional capital needs for additional drilling, especially in New York and Ohio, and also to drill a test well and lay a pipeline in our Chambers play in Canada."

Beyond raising money through equity, Unbridled could also increase its ability to use debt.

"We already have a debt facility in place with Huntington Bank, and we will expand that facility by adding proved developed reserves," he said.

Energy Focus shareholders chip in

Energy Focus said 19 of its existing shareholders, led by the environment-minded Quercus Trust, bought $10.2 million worth of stock-and-warrant units in a private placement.

The placement comprised 3.18 million units of one common share and one warrant at $3.205 per unit. Each warrant is exercisable for five years at $3.08. Energy Focus stock (Nasdaq: EFOI) rose 10.76%, or $0.27, to close at $2.77 on Wednesday.

Energy Focus, a Solon, Ohio-based marker of fiber optic lighting systems, said the proceeds of the placement will be used to fund general purposes, working capital and research and development.

Most of the stock issued went to California-based Quercus. Quercus is controlled by Californian investor David Gelbaum, who has been an active supporter of environmental causes.

Among the other investors were Energy Focus directors Ronald Casentini, John M. Davenport, John B. Stuppin and Philip Wolfson, who committed a total of about $100,000.

The investment came as Energy Focus announced that it had secured business from personal care products retailer Bath & Body Works to install its lighting systems in a number of locations.

Littlefield sells to Value Fund

Littlefield said it agreed to sell $7 million worth of common stock to funds affiliated with Value Fund Advisors.

The private placement involves 5.19 million common shares of Littlefield at $1.3486 per share. Littlefield common stock (OTCBB: LTFD) closed at $1.21 on Wednesday, up by $0.01, or 0.83%.

Littlefield, an Austin, Texas-based operator of bingo halls and party rental and catering companies, said the proceeds of the deal will be used to fund its growth plans in Texas, South Carolina and Florida as well as for general purposes. The placement proceeds and an anticipated $4 million acquisition line of credit will bump up Littlefield's cash to more than $12 million, the company said.

Value Fund Advisors, through its funds, was already a major shareholder of the company before the placement. The placement agreement requires Value Fund to hold on to its shares for at least five years but will give the fund nomination rights to two seats on Littlefield's board until the end of 2012. Littlefield will expand it board to six members from five.

"We are excited by the confidence shown in Littlefield Corporation by Value Fund Advisors through this investment," Littlefield president and chief executive Jeffrey L. Minch said in a statement. "In addition to the obvious benefit of being able to fund our ambitious expansion plans this relationship provides us with access to financial expertise and sound counsel to assist us in the execution of our growth plans."

"This economic strength is particularly timely as perceived weaknesses in the economy will undoubtedly provide extraordinary opportunities for near term growth which can only be capitalized upon through the ability to move with certainty," he added. "This is a landmark event in the history of the company and we will leverage off it to produce meaningful and substantial growth. The liquidity to execute our growth plans is no small benefit and is vital to a small company's plans to become a bigger company."

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