Chaparral prices $150 million; Oramed sells $5.2 million; Ormonde to get £1.36 million

By Devika Patel

Knoxville, Tenn., July 15 - Chaparral Energy, Inc. said it has arranged a $150 million private placement of convertible preferreds, which will help the company complete an acquisition, Oramed Pharmaceuticals, Inc. sold $5.2 million of its shares and warrants, raising funds for research and development and Ormonde Mining plc priced a £1.36 million stock sale, which will raise proceeds for the company's Barruecopardo Tungsten Project.

Chaparral to get $150 million

Chaparral Energy said it will raise $150 million by selling its 6.5% series B convertible preferred stock to Magnetar Capital.

The proceeds from this private placement will be used to reduce debt, fund the combined company's capital program and for general corporate purposes.

The closing of the deal is expected to occur concurrently with, and is contingent on, the closing of the company's planned acquisition of Edge Petroleum Corp.

The boards of directors of both companies have unanimously approved the merger and Chaparral's stockholders have already voted in favor of the merger, which is anticipated to settle in the fourth quarter.

Chaparral stockholders will own approximately 86% of the outstanding common stock of the combined company and Edge stockholders will own approximately 14% of the common stock.

The shares are expected to begin trading under the symbol "CPR" once the transaction is closed, pending listing approval from the New York Stock Exchange. Edge common stockholders will receive 0.2511 shares of Chaparral common stock for each share of Edge common stock they own.

"This transaction represents a milestone in Chaparral's long and successful 20-year existence as a private company and we look forward to the opportunities available to us as a public entity," Chaparral chief executive officer, president and co-founder Mark Fischer said in a press release.

"We are extremely excited about this transaction as it allows us to achieve two of our corporate strategic initiatives of increasing our production and cash flow and also accessing the public equity markets.

"We believe that Edge's exploratory prospect inventory provides significant high-impact growth opportunities for us and strongly complements our existing large inventory of low-risk drilling and enhanced oil recovery projects. The combined company will have a robust, yet predictable and efficient growth strategy and the potential for significant value creation," Fischer continued.

Oklahoma City-based Chaparral Energy is a privately held energy exploration and production company focused on the mid-continent. Its shares (NYSE: CPR) have not yet begun trading.

Oramed wraps $5.2 million

Oramed said in a press release that it took in $5.2 million from a private placement of shares and warrants.

The company develops pharmaceutical solutions, including an orally ingestible insulin pill to be used for the treatment of individuals with diabetes, rectal application of insulin, flu vaccines, use of oral ingestible pills for delivery other polypeptides and use of rectal application for delivery of other polypeptides.

In the private placement, Oramed sold 8,668,002 common shares at $0.60 per share to a group of investors, led by Montaur Capital Partners, along with three-year warrants for 4,262,337 common shares, exercisable at $0.90.

Proceeds will be used for research and development, as well as for the next phase of the company's clinical trials on its lead product, an oral insulin capsule.

"The investors in this round of funding, including Montaur Capital Partners, whose principal, Dr. Michael Goldberg, is an expert in the oral insulin market, bring a strategic added value to the company," Oramed's chief executive officer Nadav Kidron said in the release. "We are excited to have these investors involved with Oramed and we look forward to moving ahead with the development of our entire line of products."

The Jerusalem-based pharmaceutical company's shares (OTCBB: ORMP) rose 1.67%, or $0.01, to close at $0.60 on Tuesday.

Ormonde prices £1.36 million

Ormonde Mining has arranged to sell 19,389,000 ordinary shares at 7p per share for £1.36 million, in a private placement designed to help the company's Barruecopardo Tungsten Project.

Proceeds will be used at the project for drilling, mining studies, metallurgical testwork, engineering design work, environmental surveys and studies.

"We are very excited about the potential of our Barruecopardo Tungsten Project based on the recently announced enlarged mineral resource and this placing provides funding for Ormonde to continue advancing our plans to fast-track the project into early production," Ormonde Mining managing director Kerr Anderson said in a press release.

The Navan, Ireland-based company's shares (London: ORM) fell 13.35% on Tuesday, or 1.26p, closing at 8.2p. Ormonde Mining and its subsidiaries acquire, explore and develop mineral resource projects.

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