Microfluidics, Redbank in convertible deals; Orient-Express to raise $55.19 million; Raser reveals investor

By Kenneth Lim

Boston, Nov. 14 - Microfluidics International Corp. brought in $5 million through a convertible placement to a single investor to support its growth plans.

Orient-Express Hotels Ltd. plans to sell $55.19 million of its common stock through a registered direct offering to raise capital for general purposes.

Raser Technologies, Inc. revealed that Fletcher International, Ltd. is the investor in its planned $20 million stock placement.

And Redbank Mines Ltd. is placing A$1 million of convertible notes to develop a copper project.

Microfluidics sells convertibles

Microfluidics International sold $5 million of 9% convertible debentures due 2015 to a single investor in a private placement.

The convertibles have an initial conversion price of $1.25 per share. Microfluidics common stock (OTCBB: MFLU) ended unchanged at $0.35 on Friday.

The investor also received warrants for $20 million in shares that will settle in two tranches. The first tranche will be exercisable for up to a 40% equity stake in the company at $2 per share and the second tranche will be exercisable at $3 for up to a 50% stake.

Proceeds will be used for working capital to support the company's strategic plan for growth, including research and development initiatives to bring new products and services to the market.

The Newton, Mass., company specializes in manufacturing and marketing a line of fluid materials processing systems used for a variety of fluid grinding, mixing, milling, and blending applications across a variety of industries.

"In these economic times, we believe securing our financial future is a required step on behalf of all our stakeholders," Microfluidics executive vice president and chief financial officer Brian E. LeClair said in a statement. "Obtaining additional financing through this convertible debenture was the next step in building our capital structure and meets our working capital requirements to finance the growth of the company."

Orient-Express plans stock sale

Orient-Express Hotels said it is offering $55.19 million of its common stock through a registered direct placement.

The offering comprises 8.49 million common shares at $6.50 per share. Orient-Express common stock (NYSE: OEH) closed at $6.51 on Friday, lower by 21.85% or $1.82.

Proceeds will be used for general corporate purposes.

Orient-Express is a Hamilton, Bermuda-based luxury hotel and restaurant operator.

Raser identifies investor

Raser Technologies said the investor in its $20 million stock placement is Fletcher International.

The company is offering 2 million common shares at $5 apiece in the initial tranche on Nov. 14 for $10 million. The remainder will settle for $10 million at a price per share to be determined.

Raser common stock (NYSE: RZ) finished lower by 7.06% or $0.30 on Friday to settle at $3.95.

Fletcher will also receive 10-year warrants for up to $20 million in shares, with half of them exercisable at $6 in the first tranche and the remainder exercisable at a price to be determined.

Proceeds will be used to further Raser's geothermal development program and for general corporate purposes.

Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation.

Redbank to raise A$1 million

Redbank Mines said it plans to place A$1 million of zero-coupon convertible notes in two equal tranches to Crawley Investments Pty Ltd.

The first tranche will settle on Nov. 17 and the second tranche on or before Dec. 15.

Crawley, which already holds a 19.88% stake in Redbank, will also underwrite a rights issue for up to $3.5 million that is expected to be completed by March 31, 2009. In addition, Crawley will satisfy Redbank's obligations under an existing $1.5 million loan due February 2009 from Macquarie Bank Ltd.

Proceeds will be used to pursue business objectives, including the completion of the definitive feasibility study for the company's high grade Redbank Copper project in the Northern Territory of Australia.

Perth, Australia-based Redbank is a mineral exploration company.

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