Cardima concludes $20 million deal; Norseman completes stock placement; Paradigm raises $6.21 million

By Stephanie N. Rotondo

Portland, Ore., March 3 - Tuesday was a day of wrapping deals in the PIPE market, with Cardima Inc., Norseman Gold plc, Paradigm Holdings Inc. and SeaBird Exploration Ltd. all concluding their respective private placements.

Cardima completed a $20 million stock sale, the company announced. Proceeds from the deal will be used in part to repay outstanding loans.

Norseman meanwhile raised £5 million in a private placement of stock. The company will use the funds to repay an outstanding convertible loan at a 33% discount.

Also, Paradigm sold more than 6,000 preferred shares, raising a total of $6.21 million. Proceeds from the financing will be used to repay existing debt.

SeaBird Exploration completed a stock sale, valued at NOK 61.8 million. The company also said it was planning a so-called repair offering for shareholders who did not participate in the original placement.

Cardima concludes $20 million deal

Cardima wrapped a $20 million private placement of stock, the company announced Tuesday.

The Fremont, Calif.-based medical device company sold 18,518,518 common shares at $1.08 per share. The deal also included warrants for 5,555,555 additional shares at $1.25 per share.

"The fact that Cardima is able to raise equity in the midst of the most challenging economic environment that we have faced in generations is a testament to the commercial potential of our ablation technology," Tony Shum, chairman of Cardima, said in a statement. "We intend to use the proceeds to prudently continue to execute our commercial plans to support further product adoption and to repay outstanding loans."

Cardima's stock (OTCBB: CADM) closed 3 cents, or 2.61%, lower at $1.12. Market capitalization is $144 million.

Norseman completes stock placement

Norseman Gold raised £5 million through a private stock sale, the company said.

Norseman will sell 62.5 million shares at 8p per share. Proceeds will be used to redeem the company's A$15 million convertible loan for A$10 million.

The company said that the redemption of the loan at a 33% discount from par value would save more than A$6.3 million in capital repayments and interest.

The remainder of the funds will be used for general working capital.

Furthermore, Norseman said it is planning on repaying A$1.5 million in other outstanding loans with cash on hand or by issuing new common shares. Upon completion of each of these milestones, "Norseman Gold will have no outstanding loan facilities (other than finance lease facilities within [Central Norseman Gold Corp. Ltd.] relating to the company's mining fleet), enabling all cash generated from the Norseman Gold Project to be applied to production and further development," the release stated.

Norseman's stock (LSX: NGL) ended $1.55, or 15.12%, softer at $8.70.

Norseman Gold is a London-based gold production company.

Paradigm raises $6.21 million

Paradigm Holdings, the parent company of Paradigm Solutions, concluded a $6.21 million private placement of preferreds.

The company sold 6,206 shares of the 12½% series A-1 preferred stock, according to a regulatory filing. Class A and B warrants were also issued, exercisable at $0.078 and $0.0858, respectively. The class A warrants are good for 79.6 million common shares, while the class B warrants are good for 69 million common shares.

Both warrants expire seven years from issuance.

Of the proceeds, about $4 million will be used to pay down debt and for general working capital, the company said in a news release.

Hale Capital Partners LP led the deal.

"In the past two years, we have repositioned Paradigm by divesting lower margin commercial and non-strategic federal business; acquiring two companies in the national security and information assurance sectors; streamlining our operations and building a team of seasoned federal sales and operational executives," Peter B. LaMontagne, Paradigm president and chief executive officer, said in the release. "We welcome this strategic investment in Paradigm by Hale Capital Partners as the next critical milestone in the execution of our strategy. Hale Capital Partners understands our market and this strategic cash infusion will allow the Paradigm team to focus on business expansion. "

"We are delighted to back Paradigm's executive team in their effort to grow in the cyber security and national security sectors," continued Martin Hale Jr., CEO of Hale Capital Partners. "Based on many years of experience in the Federal IT services space, we are aware of the time and effort required to grow organically. Over the last two years, we believe Paradigm's team has laid a strong foundation for organic growth. We are also excited by the team's successful track record making strategic and accretive acquisitions. Paradigm has the opportunity to become a leading provider in exciting and differentiated growth sectors that are vital to our national security."

Paradigm's equity (OTCBB: PDHO) remained steady at 7 cents, where it has been since Feb. 3. Market capitalization is $1.55 million.

Paradigm is a Rockville, Md.-based provider of information technology and business solutions for the federal government.

SeaBird wraps NOK 61.8 million placement

SeaBird Exploration completed a NOK 61.8 million private placement of stock, according to a press release.

The company sold 30.9 million shares at NOK 2 per share. The deal originally priced on Feb. 26 for up to NOK 90 million.

Proceeds from the financing will be used to partly finance a restructuring of the company's NOK 200 million bond loan, which matures July 14.

Furthermore, SeaBird said its board of directors have begun a "repair offering" for shareholders who were not invited to participate in the private placement.

SeaBird's equity (Oslo: SBX) dropped 35 cents, or 13.46%, to $2.25.

SeaBird has offices in the British Virgin Islands, Dubai and Oslo, Norway, and provides oil and gas companies with marine seismic data.

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