Teton plans $40 million; Republic First Bancorp raises $10.8 million; Empyrean wraps £4.48 million

By Devika Patel

Knoxville, Tenn., June 10 - Teton Energy Corp. will sell $40 million in convertible debentures in a PIPE arranged through agent RBC Capital Markets, Republic First Bancorp, Inc. completed a $10.8 million sale of convertible trust preferred securities, which the company hopes will support future growth, while Empyrean Energy plc raised £4.48 million by selling shares.

Teton to sell $40 million convertibles

After posting a first quarter loss of $8.2 million, Teton Energy may make up for its past revenue shortages through a $40 million private placement of convertible debentures.

The 10.75% debentures are secured by a second lien on all assets in which the company's senior lender has a collateral interest. They mature June 17, 2013 and are convertible at $6.50.

"This financing will give Teton increased liquidity and add flexibility in the execution of our 2008 and 2009 capital expenditure plans. Additionally, it frees up more of our $150 million bank credit facility with JPMorgan to fund future growth." Teton's executive vice president and chief financial officer Lonnie Brock said of the sale in a press release.

Teton is a Denver-based developer, producer and marketer of natural gas and oil properties. Its shares (Amex: TEC) lost 7.92%, or $0.43, to close at $5.00 on Tuesday.

Republic First to use $10.8 million for growth

Republic First Bancorp raised $10.8 million from a private placement of convertible trust preferred securities, which were sold to a group of four investors, led by Vernon W. Hill II, and to Harry D. Madonna, founder, chairman and chief executive officer of the company.

The trust preferred securities have a coupon of 8% and are convertible into common stock at a conversion price of $6.50.

"With the completion of this issuance and the assistance of Vernon Hill, the company is now poised to create a major regional commercial and retail bank with a unique brand. Mr. Hill, with his record of innovation, customer satisfaction, brand building and shareholder value creation, will be an invaluable resource for the future growth and prosperity of the company," Madonna said in a press release.

"Republic First Bank has the foundation and commitment to become another customer favorite and outstanding performer. There is no reason the new Republic First Bank should not become the next great Philadelphia-based success story. I look forward to working with Harry and his team in building a great company," former Commerce Bancorp Inc. chairman and chief executive officer Hill said in the release. Hill is also lead investor.

Republic First Bancorp is a Philadelphia-based bank holding company; its shares (Nasdaq: FRBK) soared 33.86% Tuesday, or $1.48, to close at $5.85.

Empyrean to use £4.48 million for development

Empyrean Energy plc settled a placement of £4.48 million in ordinary shares at 50p per share.

The PIPE proceeds will be used by the London-based oil and natural gas exploration and development company to further develop the gas condensate discovery at its Sugarloaf Project.

"These funds place Empyrean in a strong position to further develop the gas condensate discovery at the Sugarloaf Project and to maintain the momentum the company has built since listing in 2005," Empyrean director Tom Kelly said in Tuesday's press release.

Late last month Empyrean reported that a reservoir stimulation program at its Kennedy #1 well in Block B of the Sugarloaf prospect in Texas, had delivered promising new findings. The company is considering its options on how to accelerate the program.

The initial test results from Empyrean's TCEI JV Block A-1well on Block A at the Sugarloaf project indicated "spectacular condensate and gas flows following a very limited fracture stimulation," the company said in a May 28 press release.

"These flow rates are spectacular from an acid frac of only 900 feet of horizontal with only 5 sets of perforations," Empyrean's executive director Tom Kelly said in the May release.

"To be getting such a great condensate flow is also very pleasing given where the oil price is right now. Our shareholders have been patient and it is pleasing to see this being rewarded as the completion methods learned early on in the project are being successfully implemented by the operator," Kelly added in the May release.

The company's shares (London: EME) were boosted by 5.73%, or 3.25p, to close at 60p on Tuesday.

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