Coal of Africa gets acquisition funds; Seacoast wraps placement; American Lorain to sell stock

By Stephanie N. Rotondo

Portland, Ore., Oct. 29 - The PIPEs market saw deals coming from a variety of sectors Thursday, including the mining, telecommunications and banking industries.

Coal of Africa Ltd. announced that it raised £56.87 million from a private placement of equity. The funds will be used to finance a planned acquisition. However, if that purchase goes awry, the company will use the funds for other purposes, including other potential acquisitions.

Meanwhile, Seacoast Banking Corp. of Florida settled a $13.5 million placement of shares as well. Part of the financing will be used to add capital to Seacoast National Bank.

American Lorain Corp. brought a $12 million deal to market. The company will issue stock and warrants to raise the funds.

Elsewhere, Verena Minerals Corp. said it was looking to raise C$5 million to fund exploration and development projects. The company will privately place equity units, according to the terms of the transaction.

Also, Mitec Telecom said it settled a C$2 million private placement of convertible notes, which was oversubscribed.

Coal of Africa raises acquisition funds

Coal of Africa settled a £56.87 million private placement of ordinary shares, according to a press release.

The deal was announced Thursday morning and was completed a few hours later.

The Perth, Australia-based company sold approximately 59.86 million shares at 95p per share.

Proceeds from the financing will be used to fund a ZAR 650 million acquisition of the entire share capital of NuCoal Mining (Pty.) Ltd. Any remaining proceeds will be used to increase logistics capacity, accelerate capital expenditures at the Vele and Makhado projects, pursue other smaller, opportunistic bolt on acquisitions of coal projects and for general working capital requirements.

Should the acquisition fall through, Coal of Africa will use those proceeds to "accelerate expansion of logistic facilities at the Matola Terminal and Maputo port, for alternative acquisitions and for general working capital purposes," the press release said.

"Today's proposed placing and acquisition further underpin CoAL's track record in building a high quality mid-tier thermal and coking coal business," commented Simon Farrell, managing director, in the statement.

"The company already benefits from a sizeable resource base, carefully considered logistics and a high quality and supportive investor base including its proposed off-take partners. The proposed acquisition of NuCoal would, once completed, transform CoAL into a multi-site producer, well placed to take advantage of the current strength in, and attractive outlook for, global coal markets.

"Recognizing the growing size of the company and its mining assets, its predominantly London focused institutional investor base and share trading liquidity, a move to the Main Market of the LSE represents the logical next step in CoAL's exciting development trajectory."

Coal of Africa's shares (London: CZA) closed at 100p. Market capitalization is £412 million.

Seacoast settles equity placement

Seacoast Banking also completed a financing, raising $13.5 million in a private placement of equity.

The deal closed Oct. 27. CapGen Capital III LP was the sole investor.

The company sold 6 million common shares at $2.25 per share.

Proceeds will be used to add capital to Seacoast National Bank and for general corporate purposes.

Seacoast's stock (Nasdaq: SBCF) gained 21 cents, or 13.46%, to $1.77. Market capitalization is $33.6 million.

Seacoast Banking is a Stuart, Fla.-based bank holding company.

American Lorain to sell stock

American Lorain, a Junan County, China-based integrated food manufacturing company, said it would take in $12 million via a private placement of stock.

The deal was inked Oct. 28.

Under the terms of the deal, American Lorain will issue approximately 5.01 million common shares at $2.40 per share. Investors will also receive series A warrants, which are equal to an additional 1.75 million shares. The warrants are exercisable at $3.70 per share for five years.

Also, series B warrants for 501,115 shares will also be issued. Those warrants will also be exercisable at $3.70, but only for 30 months.

"I am very pleased with our ability to acquire this type of equity financing given the nature of the tight global markets," said Si Chen, chairman and chief executive officer, in a news release. "It speaks well of how the investment community views American Lorain."

American Lorain's equity (Amex: ALN) fell 24 cents, or 8.17%, to $2.70. Market capitalization is $67.2 million.

Verena aims for C$5 million

Verena Minerals is seeking C$5 million from a private placement of common share units, the company announced.

Verena will sell 25 million units containing one common share and one half-share warrant. Each unit will be issued at C$0.20 and whole warrants are exercisable at C$0.30 for 18 months.

Proceeds will be used for exploration and development. Settlement is expected by Nov. 12.

Calls seeking comment were not returned Thursday.

Verena's stock (TSX Venture: VML) improved by a penny, or 4.76%, to C$0.22. Market capitalization is C$20.9 million.

Verena Minerals is a Toronto-based mineral exploration company.

Mitec raises C$2 million

Mitec Telecom pocketed C$2 million from an oversubscribed private placement of 12% convertible debentures, the company said in a press release.

The deal originally priced Oct. 6 at C$1.5 million.

The two-year notes are convertible into common shares at C$0.06 per share.

The funds were used to pay down debt and for working capital.

"We are very encouraged by the demand this financing generated," remarked Jeffrey Mandel, executive chairman, in the release. "It is further proof that investors recognize the potential of Mitec's various product lines in the growing telecommunications communities in which Mitec is positioned."

Mitec's shares (Toronto: MTM) increased by C$0.005, or 9.09%, to C$0.06. Market capitalization is C$12.1 million.

Mitec telecom is a Montreal-based manufacturer of radio frequency products.

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