CECO settles notes placement; China XD to sell preferreds, warrants; Argentex wraps units deal

By Stephanie N. Rotondo

Portland, Ore., Nov. 30 - After a long holiday weekend, the private placement market saw a decent influx of deals, across a variety of sectors and types.

CECO Environmental Corp. said it settled a $10.8 million placement of convertible promissory notes. The company intends to use proceeds, in part, to pay down existing subordinated debt.

Also, China XD Plastics Co. Ltd. brought a $15.2 million deal to market. The company will issue convertible preferred stock and two series of warrants in its financing effort.

In the mining sector, Argentex Mining Inc. settled a previously announced private placement of units. The deal was oversubscribed, resulting in total proceeds of C$4.17 million.

New Guinea Gold Corp. also completed a deal - or at least part of one. The company raised C$3.5 million in the first tranche of its private placement of common stock. The shares are being purchased by Skana Capital Corp.

And African Queen Mines Ltd. said it was seeking C$3 million via a private placement of units.

Away from mineral explorers, Arsenal Energy Inc. announced a C$5.5 million placement of common and flow-through shares.

CECO settles notes placement

CECO Environmental wrapped a $10.8 million private placement of convertible promissory notes, according to a press release.

The 6% subordinated notes mature November 2014 and are payable each quarter. The notes can also be converted into common shares at a conversion price of $4.00 per share.

In addition, the company can force conversion of the notes after the third anniversary of issuance, should CECO's stock trade at $8.00 or higher for five consecutive business days.

Proceeds were used to pay down debt and for growth capital.

Calls seeking comment were not returned Monday.

CECO's equity (Nasdaq: CECE) gained 5 cents, or 1.22%, to $4.15. Market capitalization is $59.3 million.

CECO Environmental is a Cincinnati-based independent air pollution control company.

China XD to issue preferreds

China XD Plastics announced a $15.2 million private placement of convertible preferred stock and warrants.

The company will issue 15,188 shares. Each preferred is convertible into common stock at $4.60 per share. The preferred also accrue cumulative dividends at 6% annually and mature Dec. 1, 2012.

Also, investors received series A and B warrants. The series A warrants can be redeemed for common shares at $5.50 per share for five years. The series B warrants are automatically exchangeable for common shares at less than $4.60 per share.

"We are excited to announce our financing, which demonstrates the confidence investors have in the company and our prospects for the future," said Jie Han, chairman and chief executive officer, in the release. "We plan to use the proceeds mainly to fund our production capacity expansion program."

Settlement is expected by Dec. 1.

China XD's shares (OTCBB: CXDC) dropped $2.71, or 25.14%, to $8.07.

China XD Plastics is a Harbin, China-based producer of modified plastics primarily for automotive applications.

Argentex deal oversubscribed

Argentex Mining completed a C$4.17 million private placement of units.

The deal originally priced at C$4 million on Nov. 20.

The Toronto-based company issued approximately 5.96 million units at C$0.70 per unit. The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$0.90 for two years.

Proceeds will be used for exploration, working capital and corporate purposes.

Argentex's shares (TSX venture: ATX) ended unchanged at C$0.86. Market capitalization is C$31.6 million.

New Guinea wraps first tranche

New Guinea Gold took in C$3.5 million in the first tranche of its C$5 million private placement of common stock, the company said in a news release.

The deal originally priced Oct. 28. The first tranche settled Nov. 27.

The shares were issued to Skana Capital Corp. The company intends to sell a total of approximately 41.66 million shares at C$0.12 per share.

Proceeds will be used for production activities at New Guinea's Sinivit mine. The remainder of the financing is expected to settle by mid-December.

"This financing is a prudent measure to secure growth of gold production at the Sinivit mine, advance exploration and strengthen New Guinea Gold's financial position," said Bob McNeil, chairman and CEO, in the statement.

"We are pleased to welcome Skana Capital. Skana has historically added value to companies in which that corporation has invested by taking an active role in their development and through mutually advantageous partnering."

New Guinea's stock (TSX Venture: NGG) slipped 1½ cents, or 10.34%, to C$0.13. Market capitalization is C$20.31 million.

New Guinea Gold is a Vancouver, B.C.-based gold exploration company.

African Queen seeks C$3 million

Among other mining companies, African Queen Mines said it would take in C$3 million from a private placement of units.

The deal priced Nov. 27.

Under the terms of the non-brokered financing, African Queen will sell up to 5 million units at C$0.60 per unit. Each unit will consist of one common share and one-half share warrant. Whole warrants are exercisable at C$0.80 for two years.

Proceeds will be used for "acceleration of work programs on the company's gold projects in Africa, as well as potential property acquisitions and working capital," according to a press release.

Calls seeking comment were not returned Monday.

African's equity (TSX Venture: AQ) improved by 2 cents, or 3.33%, to C$0.62. Market capitalization is C$24.01 million.

African Queen Mines is a Vancouver, B.C.-based mineral resource company.

Arsenal aims for C$5.5 million

Arsenal Energy intends to raise C$5.5 million via a private placement of equity, the company announced.

Calgary, Alta.-based Arsenal will sell up to 8 million common shares at C$0.50 per share. The company will also issue up to 2.5 million flow-through common shares at C$0.60 per share.

Proceeds will be used for exploration and general working capital. Settlement is expected by Dec. 17.

Arsenal's stock (Toronto: AEI) held steady at C$0.55. Market capitalization is C$59.4 million.

Arsenal Energy is an oil and gas company.

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