PMFG plans $25 million deal; AXA raises A$500 million, eyes more; Magnum, KongZhong wrap sales

By Kenneth Lim

Boston, March 18 - PMFG Inc. plans to raise about $25 million through a private sale of preferred stock, and is seeking approval to issue 5 million preferred shares.

AXA Asia Pacific Holdings Ltd. raised A$500 million through a placement of ordinary stock, and could raise more through a planned rights offering.

Magnum D'Or Resources, Inc. placed a $15 million convertible promissory note with Simco Group to raise working capital.

KongZhong Corp. placed $6.8 million of convertibles with Nokia Growth Partners through a private placement as part of a strategic investment by the venture arm of the mobile phone maker.

PMFG eyes $25 million

PMFG has hired a financial adviser and will meet with a limited number of accredited investors as part of plans to raise about $25 million.

The company on Wednesday filed a preliminary proxy statement with the Securities and Exchange Commission for a special stockholders meeting to seek approval to issue up to 5 million preferred shares. The preferreds may be convertible, and may be issued in more than one series.

PMFG plans to meet with the potential investors in the second quarter of 2009.

Proceeds will be used to repay part of the company's outstanding debt.

The company's common stock (Nasdaq: PMFG) rose 14.62% or $0.95 to close at $7.45 on Wednesday.

PMFG is a Dallas-based provider of custom-engineered energy delivery systems and products.

AXA raises A$500 million

AXA Asia Pacific raised A$500 million through a private placement of shares to institutional investors.

Under the placement, the company sold its common stock at A$2.85 per share. AXA Asia Pacific common stock (ASX: AXA) closed at A$3.44 on Wednesday, up 4.24% or A$0.14 from its March 16 close. Trading in the stock was halted Tuesday.

AXA SA, the company's largest shareholder, subscribed for 93.2 million shares for about A$266 million to maintain its 53.1% interest.

AXA could raise more capital through a planned rights offering to existing shareholders.

Based in Melbourne, Australia, AXA Asia Pacific is the holding company for the AXA APH Group, an insurance and financial services company.

Magnum D'Or secures Simco investment

Magnum D'Or Resources placed a $15 million eight-year convertible promissory note with Simco Group.

The note will be redeemed for $24.75 million, an effective yield to maturity of about 6.46%. The notes will accrue non-compounded interest at 12.5% for the first four years and at 5% thereafter. Simco may extend the note at an interest rate of 5% per year after eight years.

The note may be converted into Magnum D'Or common stock at the 20-day trailing average market price of the stock after the fourth year.

Proceeds will be used as working capital.

Based in Fort Lauderdale, Fla., Magnum is a recycling development stage company that holds exclusive license agreements for the United States, Canada and China.

"This marks the beginning of our planned expansion phase and will continue as we show further progress to our investors and the market," Magnum D'Or president Joseph Glusic said in a statement. "We are grateful to our investment-equity financing partner, the Simco Group, for its diligent effort in arranging what we believe is extremely favorable terms in such a turbulent credit market. This in itself shows the future strength and potential Magnum has to offer."

"The $15 million funding will be used to immediately expand the Magog facility and increase capacity," he added. "Additional custom equipment will follow shortly to support the recent Magnum/SRI advancements in compound development so that Magog will soon be capable of manufacturing specialty compounds and sufficient batch production for delivery to manufacturers for production testing."

KongZhong wraps Nokia deal

KongZhong completed its planned $6.8 million placement of five-year 8% convertible senior notes to Nokia Growth Partners. The deal priced Feb. 18.

The coupon may be reduced to 6% based on the financial performance of KongZhong. The initial conversion price was set at the 75-day closing average of KongZhong's common stock, or about $3.55 per share.

The company also issued warrants for 2 million American Depositary Shares, exercisable at $5 for five years.

KongZhong common stock (Nasdaq: KONG) closed at $5.20 on Wednesday, up by 1.09% or $0.06.

Beijing-based KongZhong is a mobile internet entertainment company.

In a statement on Feb. 18, KongZhong chairman and chief executive Leilei Wang said the company welcomed Nokia Growth Partner's investment.

"Nokia is the leading mobile device manufacturer in the world and mainland China with significant market share," Wang said. "We have developed a good working relationship with Nokia China by connecting our various mobile value-added, gaming and community services through their powerful mobile device platform and look forward to expanding our relationship with Nokia."

Nokia Growth Partners managing partner Paul Asel added: "Nokia Growth Partners invests in best of breed mobile services and technology companies with significant potential for future growth and industry leadership and whose businesses can benefit from a deeper relationship with Nokia. KongZhong is a premier mobile entertainment company. Our investment reflects the belief in the leading role KongZhong can take as China embarks on 3G mobile services."

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