Headwaters oversubscribed; Majesco to raise over $9 million; Hythiam makes direct offering

By Stephanie N. Rotondo

Portland, Ore., Sept. 17 - it was a day of registered direct offerings in Thursday's private placement market, lending credence to some market players' belief that the arena will see more direct placement.

Headwaters Inc. brought a $37.44 million deal to market. The company said it would sell stock to raise the proceeds, and a company representative said the deal was significantly oversubscribed.

Majesco Entertainment Co. and Hythiam Inc. also brought registered direct offerings, for $9.63 million and $7 million, respectively.

Meanwhile, Green Energy Live Inc. said it inked a $20 million equity line of credit. The company did not return calls seeking comment.

Lysander Minerals Corp. announced it closed on its C$3.22 million placement of units. The funds will go toward its anthracite mining activities.

Headwaters deal oversubscribed

Headwaters, a South, Jordan, Utah-based company providing products and services to the building products, coal combustion and energy industries, announced a $37.44 million registered direct offering of equity.

The company intends to sell 9.6 million common shares at $3.90 each.

However, according to Sharon Madden, vice president of investor relations, the company actually oversold the deal, getting interest for about double the original amount.

"But we only had approval for about $35 million," she told Prospect News. She added that the company is not intending on doing another equity offering for those investors left out of the original deal.

Madden was pleased with the "very positive" reaction from investors.

"The whole attitude in the market has changed," she said. "People are feeling a little more upbeat and confident than they were even six months ago."

Proceeds from the financing will be used to partially pay off its senior secured first-tier term loan. Under the terms of the loan, Headwaters must repay $25 million if the company enters into an asset-backed lending facility on of before Dec. 31, 2009.

Settlement is expected by Sept. 22.

Headwaters' shares (NYSE: HW) fell 46 cents, or 10.36%, to $3.97. Market capitalization is $202 million.

Majesco to raise over $9 million

Majesco Entertainment will raise $9.63 million via a registered direct offering of common shares, according to a press release.

The company will issue 6.42 million shares at $1.50 per share.

Settlement is expected by Sept. 22.

Calls seeking comment went unreturned Thursday.

Majesco's equity (Nasdaq: COOL) declined 30 cents, or 15.46%, to $1.64. Market capitalization is $51.3 million.

Majesco Entertainment is an Edison, N.J.-based publisher of video games and digital entertainment products.

Hythiam negotiates direct offering

Among other registered direct offerings, Hythiam said it orchestrated a $7 million direct placement of equity.

The company will sell about 9.33 million common shares at $0.75 per share. In addition, investors will receive warrants equal to 2.33 million additional shares, exercisable at $0.85 for three years.

Proceeds will be used for working capital and general corporate purposes. Settlement is expected by Sept. 21.

Hythiam's stock (Nasdaq: HYTM) gained 9 cents, or 12.92%, to $0.79. Market capitalization is $43.8 million.

Hythiam is a Los Angeles-based provider of behavioral services to health plans, employers, criminal justice and government agencies.

Green Energy gets credit line

Green Energy Line secured a $20 million equity line of credit from Dutchess Private Equities Fund Ltd. on Sept. 1, the company said in a regulatory filing.

Dutchess will purchase up to $20 million in common stock over a three-year period, according to the terms of the deal. The stock price will equal 3% of the lowest closing best bid on the shares as of the five trading days preceding the put notice.

The company did not return calls seeking comment.

Green Energy's stock (OTCBB: GELV) closed unchanged at $0.10. Market capitalization is $75.3 million.

Green Energy Live is a Wyoming, Mich.-based renewable energy technology company.

Lysander wraps unit sale

In completed financings, Lysander Minerals announced it settled its C$3.22 million private placement of units.

The company sold approximately 16.07 million of the units at C$0.20 each. The units contained one common share and one half-share warrant. Each whole warrant is exercisable at C$0.30 until Sept. 17, 2011.

Proceeds will be used for costs associated with the company's Verticalnaya anthracite mine.

Lysander's shares (TSX Venture: LYM) remained steady at C$0.50. Market capitalization is C$13.5 million.

Lysander Minerals is a Vancouver, B.C.-based mineral resource company.

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