T3 closes sale; Cline arranges placement, loan; ZAP seals $2 million; Magnum gives new details

By Stephanie N. Rotondo

Portland, Ore., Jan. 6 - More and more companies were announcing completed private financings Wednesday, though more new deals were also starting to emerge.

T3 Motion Inc. said it had completed a $3.5 million private placement of a convertible debt instrument. The deal also included warrants.

Meanwhile, Cline Mining Corp. said it was planning a C$6.9 million financing, which includes a C$3.9 million private placement of units. The company has also arranged a C$3 million loan.

Among other settled deals, electric carmaker ZAP announced it had raised $2 million from the private placement of promissory notes. Magnum D'Or Resources Inc. meantime gave more details about a $3.5 million private placement that settled Dec. 23.

T3 settles debt sale

T3 Motion, a Costa Mesa, Calif.-based provider of personal mobility vehicles, said in a regulatory filing that it had completed a $3.5 million private placement of a convertible debenture.

Vision Opportunity Master Fund Ltd. was the investor. The deal settled Dec. 30.

The 10% notes are convertible into units containing one series A convertible preferred share and one warrant at a conversion price of $1.00 per unit. The debt matures Dec. 30, 2010.

Also, investors received series G warrants equal to 3.5 million common shares. The warrants are exercisable at $0.70 for five years.

Calls seeking comment went unreturned Wednesday.

T3's stock (OTCBB: TMMM) dropped 25 cents, or 12.5%, to $1.75. Market capitalization is $89.13 million.

Cline arranges placement, loan

Cline Mining intends to raise C$6.9 million via a private placement of units and a new loan, according to a press release.

The Toronto-based company will take in C$3.9 million from the private placement, in which it will sell 13 million units at C$0.30 each. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.40 for two years.

Additionally, the company has arranged a C$3 million 6% one-year loan with Mitsui Matsushima International Pty. Ltd.

Proceeds will be used to rehabilitate Cline's New Elk mine in Colorado. Settlement is expected by Jan. 21.

Calls seeking comment went unreturned Wednesday.

Cline's shares (Toronto: CMK) slipped 2 cents, or 4.17%, to C$0.46. Market capitalization is C$36.7 million.

ZAP seals $2 million

ZAP, the Santa Rosa, Calif.-based electric carmaker, said it received $2 million from a private placement of 6% subordinated convertible promissory notes.

The deal settled Dec. 31, according to a regulatory filing.

The notes come due Dec. 31, 2011 and are automatically convertible into common shares should ZAP complete a public offering. If the public offering is not launched by May 30, 2010, the notes will automatically convert into common shares at 90% of the closing share price.

ZAP's equity (OTCBB: ZAAP) declined a penny, or 2.78%, to $0.35. Market capitalization is $37.2 million.

Magnum gives new details

Magnum D'Or Resources released more details about its $3.5 million private placement of 9% senior secured convertible notes.

The deal settled Dec. 23.

The notes come due in December 2010 and can be converted to common shares at $1.21 per share. Investors also received series A, B and C warrants.

The A warrants are good for approximately 2.16 million additional common shares, the series B for 2.89 million shares and the series C for 2.16 million shares. The warrants are all exercisable at $1.21 for five years.

"Anyone that has had to raise commercial financing in the current economic climate can appreciate the significance of this event," remarked Joseph Glusic, president and chief executive officer, in a press release.

"The fact that the terms are 'at market' and were not discounted implies the strength and potential of the company. The fact that these institutional investors also chose to accept additional warrants at 'market price' indicates the support and commitment that these institutional investors have in Magnum. The warrants issued with this transaction alone can potentially generate an additional $8.75 [million] over the next five years for the company.

"This financing will allow us to accelerate our production schedule and increase capacity more expeditiously than if we relied on internal funding," he continued. "This year, 2010, looks to be an exciting year for Magnum."

Magnum's stock (OTCBB: MDOR) fell 2 cents, or 2.17%, to $0.90. Market capitalization is $54 million.

Magnum D'Or Resources is a Hudson, Colo.-based provider of rubber recycling solutions.

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