BMB Munai raises $15.5 million; oil improves, helping volume

By Sheri Kasprzak

Atlanta, April 14 - BMB Munai, Inc. wrapped up a private placement for $15,505,000, heading up a day marked by improved volume.

The company sold 3,101,000 shares at $5 each.

"Given that oil prices have been down lately, I think it went well for them," said one market source who had been following the deal. "They've had a pretty strong performance so far this year."

Aton Securities, Inc. and Credifinance Securities Ltd. were the placement agents.

Based in New York, BMB is an oil and gas exploration, development and production company.

On Thursday, the company's stock closed up $0.12 at $5.12.

Sell-siders said higher oil prices may mean a boost in private placement volume. Oil prices finally made a comeback Thursday, closing up $0.91 at $51.13 per barrel.

"When oil prices were down, we lost a huge segment of the [PIPE] market," said one sell-sider, referring to energy companies. "I would say that more energy companies will get back out there will deals over the next few days."

"Things will pick up soon," said another sell-sider. "You can probably expect to see things pick up early next week, more oil deals I would wager."

Rentech raises $9 million

Rentech, Inc. wrapped a $9 million private placement of preferred stock.

The company sold 90,000 shares of series A preferred stock at $100 each to funds associated with M.A.G. Capital, LLC.

The preferreds pay an annual dividend of Prime plus 200 basis points and are convertible into common shares at a 20% discount to the volume weighted average price per share for five trading days before conversion. There is a $1.3852 ceiling and a $0.80 floor on the conversion price.

The investors also received warrants for 5,921,910 shares at $1.61 each.

After the closing was announced Thursday morning, the company's stock closed down $0.12 at $1.41.

"The company appears to be the clear leader in the advancement of the domestic application of gas-to-liquids/coal-to-liquids while other technology providers are spending their efforts offshore," said Harry Aharonian, portfolio manager for M.A.G., in a statement. "We foresee Rentech's intellectual property advantage as a key to its success, especially domestically, to address our nation's energy needs on an environmental and national security basis."

Based in Denver, Rentech develops synthetic gasoline produced from gas-to-liquids and coal-to-liquids technologies. The proceeds will be used to advance the company's technologies. The remainder will be used for working capital.

Pacific Energy to raise C$6.2 million

Back to more traditional energy companies, Pacific Energy Resources Ltd. said it will head to the private placement market with an offering for up to C$6.2 million.

The offering includes up to 7.75 million units at C$0.80 each.

The units include one share and one half-share warrant. The whole warrants allow for an additional share at C$1 each for 18 months.

"Here, again, I think the pricing of this deal has more to do with the company than the sector," said one market source. "It's decent pricing, so I think it'll go okay for them."

Dominick & Dominick Securities Inc. is the placement agent in the deal.

Based in Long Beach, Calif., Pacific Energy is an oil and natural gas exploration and development company. It plans to use the proceeds for exploration and development on its oil and gas properties, and for general working capital.

The company's stock closed unchanged at C$0.85 Thursday.

East West arranges two deals

East West Resource Corp. announced it plans to raise C$2 million in a brokered private placement and C$1 million in a non-brokered offering.

In the brokered deal, East West will issue up to 13,333,333 units at C$0.15 each.

Up to C$1.5 million will be issued on a flow-through basis and up to C$1 million will be issued on a non flow-through basis.

The units include one share and one warrant. The warrants allow for an additional share at C$0.20 each for two years.

PowerOne Capital Markets Ltd. is the placement agent in the brokered portion.

The proceeds from this portion of the deal will be used for exploration on base metal and gold properties in the Shebandowan Belt near Thunder Bay.

The non-brokered offering will include 6,666,667 units sold under the same terms to two U.K.-based corporations.

"It's not bad," said one market source of the pricing. "Gold and base metals have been down over the past few weeks, but the warrants look pretty good."

After the deal was announced Thursday morning, the company's stock closed down C$0.005 at C$0.135.

Based in Vancouver, B.C., East West is a gold and base metals exploration and development company.

Amica's stock dips

A day after announced a private placement for C$16.65 million, Amica Mature Lifestyles Inc.'s stock slipped.

The company's stock lost C$0.05 to close at C$5.50.

On Wednesday, after the deal was first announced, the company's stock gained C$0.10 to close at C$5.55.

The offering includes shares sold at C$5.55 each.

Based in Vancouver, B.C., Amica designs, develops, markets and manages housing and services for the elderly. The proceeds will be used for new development projects with joint-venture partners, debt repayment and general corporate purposes.

Syntroleum's stock dives

Over in direct placements, Syntroleum Corp.'s stock dove Thursday, a day after it announced its plans to conduct a $10 million direct placement.

The company's stock slid $0.79, or 6.64%, to close at $11.11 Thursday and lost another $0.34 in after-hours trading.

On Wednesday, when the deal was announced, the company's stock lost $0.20 to close at $11.90 and lost a penny in after-hours trading.

The company will sell shares at $10 each to Dorset Group Corp.

Based in Tulsa, Okla., Syntroleum converts natural gas into synthetic liquid hydrocarbons.

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