First Busey to sell preferreds; Crowflight set to raise funds; PetroNeft plans stock placement

By Stephanie N. Rotondo

Portland, Ore., Sept. 21 - The private placement market Monday was a mishmash of deals of various sizes and ranges, but the dominant sector appeared to be mining.

Of the few non-mining companies brining deals, First Busey Corp. announced a nearly $40 million placement of preferred shares. Also, the company said it was conducting an underwritten public offering and that proceeds from both transactions would help to maintain adequate capital.

Meanwhile, mineral exploration company Crowflight Minerals Inc. said it orchestrated a C$20 million placement of equity. The price per share is at a premium to recent closing levels.

PetroNeft Resources plc, another mining company, said it would also sell stock in its effort to raise £16.9 million. The placing is part of the company's plan to be a year-round producer.

Elsewhere, Rexahn Pharmaceuticals Inc. said it raised $3.5 million from a private placement. The financing was done in conjunction with the company executing a new licensing agreement.

Pediment Gold Corp. said it would sell equity units to raise C$2.42 million. Argenta Oil & Gas Inc. meanwhile said it issued new units to raise C$2.21 million.

First Busey to issue preferreds

First Busey, an Urbana, Ill.-based financial holding company, announced a $39.3 million private placement of 9% mandatorily convertible series A preferred shares.

The company will issue 393 of the shares at $100,000 per share. The preferreds are convertible into common stock.

In addition to the private placement, the company is also conducting an underwritten public offering of common stock. The company intends to sell 18 million of the shares.

The public deal also includes a greenshoe of 2.7 million additional shares.

Total proceeds will be used for general corporate purposes," including supporting the capital adequacy of Busey Bank, the company's wholly-owned bank subsidiary," the company said in a regulatory filing. "The company intends to continue to maintain Busey Bank as well capitalized for regulatory purposes."

Calls made to the company seeking comment went unreturned Monday.

First Busey's stock (Nasdaq: BUSE) dropped $1.09, or 16.93%, to $5.35. Market capitalization is $204 million.

Crowflight to raise project funds

Crowflight Minerals will privately place common shares in its effort to raise C$20 million, according to a press release.

The Toronto-based company will sell 80 million shares at C$0.25 per share. Kingplace Enterprises Ltd. is the investor.

The price per share is a 20% premium to the five-day volume-weighted average trading price and a 19% premium to Friday's closing price.

The deal is expected to come in two tranches, with the first closing coming within one week and the second in October.

Proceeds will be used for continued development at Crowflight's Bucko Lake project, as well as for general corporate purposes.

Calls made to the company seeking comment went unreturned Monday.

Crowflight's equity (TSX Venture: CML) fell C$0.005, or 2.38%, to C$0.205. Market capitalization is C$87.9 million.

PetroNeft plans stock placement

Dublin-based PetroNeft Resources hopes to take in £16.9 million, or $27.5 million, via a private placement of ordinary shares.

The company will issue approximately 120.64 million shares at 14p each in two tranches. The first tranche will include approximately 22.92 million shares and the remaining portion will be sold in the second tranche once shareholder approval has been secured.

Proceeds will be applied to pipeline and related infrastructural expenditure, field facilities, drilling of production wells and general corporate overhead.

"We are delighted with the outcome of the placing and the high level of support received from new and existing shareholders demonstrating the market's confidence in the company and its strategy," said Dennis Francis, chief executive officer, in a press release. "The commencement of year-round production will represent a major milestone for PetroNeft and is an excellent base from which we can take advantage of the opportunities available to us in the region and further develop and expand our exciting portfolio of assets."

PetroNeft's shares (London: PTR) closed at 18.25p. Market capitalization is £35.5 million.

PetroNeft Resources is an oil and gas exploration and development company.

Rexahn settles financing

Rexahn Pharmaceuticals pocketed $3.5 million from a private placement of equity, the company said in a regulatory filing and subsequent press release.

Teva Pharmaceutical Industries Ltd. purchased approximately 3.10 million common shares at $1.28 per share. Teva might also make another $750,000 investment within the next 12 months.

The financing came in connection with Rexahn and Teva executing licensing agreements regarding RX-3117, a potential cancer drug candidate. Along with the private placement funds, "Rexahn will be eligible to receive additional development, regulatory and sales milestone payments," the company said in the press release. "In addition, Rexahn will be eligible to receive royalties on net sales worldwide."

Rexahn's equity (Amex: RNN) gained $0.0119, or 1.27%, to $0.9519. Market capitalization is $59.3 million

Rexahn is a Rockville Md.-based biopharmaceutical company.

Pediment heralds equity unit deal

Pediment Gold negotiated a C$2.42 million private placement of units.

The company will sell approximately 3.22 million of the units at C$0.75 each. Each unit will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.90 for 18 months.

"The subscriber is a prominent Mexican businessman with extensive business dealings and investments, including Mexican based mining operations," the company said in a statement. "Gary Freeman, Pediment's president and CEO, states that the company is pleased to have the support of influential business people in Mexico in support of Mexico's growth in the mining sector."

Pediment's stock (Toronto: PEZ) fell 5 cents, or 5.15%, to C$0.92. Market capitalization is C$41.8 million.

Pediment is a mineral explorer based in Vancouver, B.C.

Argenta seals unit sale

Among settled transactions, Argenta Oil & Gas raised C$2.21 million from a private placement of units.

The deal originally priced between C$2 million and C$3 million on Aug. 27.

The Toronto-based company sold approximately 55.13 million units containing one common share and one half-share warrant. Each unit sold at C$0.04 and each whole warrant is exercisable at C$0.10 for 18 months.

Argenta's shares (TSX Venture: AZA) ended unchanged at C$0.04. Market capitalization is C$4.84 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.