Noreco pockets NOK 450 million from share sale; Medis gets $60 million equity line from Azimuth

By Laura Lutz

Des Moines, Iowa, April 28 - Norwegian Energy Co. completed the private placement of shares that was announced on Friday. The company took in NOK 450 million from the oversubscribed offering.

In the United States, Medis Technologies Ltd. secured $60 million from an equity facility with Azimuth Opportunity Ltd.

Up north, Nevoro Inc. priced a C$20 million offering of escrow receipts exchangeable for equity units.

U.S. Geothermal Inc. announced the exercise of most of the greenshoe in its private placement of units, upping that deal to C$15 million.

Noreco wraps share sale

Noreco said that it sold 19.15 million shares at NOK 23.50 apiece for total proceeds of NOK 450 million.

When the deal was announced on Friday, it was expected to raise between NOK 300 and NOK 450.

Pricing was determined by a book-building process with a minimum price of NOK 22.25.

Both new and existing shareholders invested in the deal.

The shares will be delivered and final payment will be due on May 2.

Pareto Securities AS and Glitner Securities AS were the joint lead managers.

Noreco is an oil and gas company based in Stavanger, Norway.

The company said it will use the proceeds to finance its acquisition of Talisman Oil Denmark Ltd.

"We are very pleased with the great interest in the private placement. The acquisition of Talisman Oil Denmark will strengthen Noreco's results, cash flow and balance sheet, and gives us an excellent position from which to grow further," Scott Kerr, chief executive officer of Noreco, said in a news release.

Noreco's shares gained NOK 0.10, or 0.41%, to close at NOK 24.20 on Monday (Oslo: NOR).

Medis gets $60 million facility

Medis said it secured a $60 million equity line of credit with Azimuth.

Azimuth is committed to purchase up to $60 million of common shares at discounts ranging from 4.15% to 5.5%. The line of credit expires on Nov. 1, 2009.

Medis may determine the timing, size and floor price per share for each draw, subject to the terms of the agreement.

Azimuth will not be required to purchase more than $11.75 million of stock in any single draw, excluding shares under any call option. Medis may make a total of 24 draws.

Reedland Capital Partners was the agent.

Any shares sold under the agreement will be registered for resale to the public under Medis' S-3 filing.

Medis Technologies is a New York-based maker of fuel cell batteries used in consumer and military electronics.

The company has previous experience in the PIPE market: it raised a total of $4.08 million from private placements of stock in December 2004 and July 2005.

On Monday, Medis' stock lost 51 cents, or 5.86%, to close at $8.20 before gaining back 7 cents in after-hours trading (Nasdaq: MDTL).

Nevoro plans offering

Nevoro said it will sell C$20 million of escrow receipts, each exchangeable for one unit.

Each unit will consist of one common share and one half-share warrant.

Pricing in the deal has not been set.

Thomas Weisel Partners Canada Inc. will lead a syndicate of agents for the offering.

The agents have a greenshoe for up to 15%, exercisable until closing.

Settlement is expected on May 22.

The escrow receipts will be automatically exchanged upon Nevoro's acquisition of Aurora Metals BVI Ltd. or Sheffield Resources Ltd., whichever comes first. Nevoro announced the acquisitions on April 17 and April 24, respectively.

If either of the acquisitions is finished before the private placement is settled, Nevoro will issue units instead of receipts.

If neither acquisition is finished by Aug. 15, investors will have the option of receiving either units or a refund.

Nevoro is a Toronto-based precious metals exploration company. It plans to use the proceeds for exploration and general corporate purposes.

The company's shares dropped C$0.01, or 2%, to finish at C$0.49 on Monday (Toronto: NVR).

U.S. Geothermal greenshoe exercised

U.S. Geothermal Inc. said it raised C$15 million from a private placement of units, including the exercise of most of the C$5 million greenshoe in the deal.

The offering originally priced at C$10.01 million on April 9.

In total, the company sold 6,382,500 units of one common share and one half-share warrant at C$2.35 apiece. Each whole warrant will be exercisable at C$3.00 for two years.

U.S. Geothermal is a renewable energy development company with headquarters in Boise, Idaho and Vancouver, B.C.

It plans to use the proceeds to complete its recently announced Empire geothermal project acquisition, for development and exploration at its Raft River and Neal Hot Springs projects, and for working capital.

Its shares gained C$0.04, or 1.45%, to close at C$2.80 on Friday (Toronto: GTH).

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