Eastern Star deal oversubscribed; ThermoEnergy details preferred sale; CryoPort to place stock

By Stephanie N. Rotondo

Portland, Ore., Aug. 10 - Eastern Star Gas Ltd. completed an oversubscribed private placement of equity, the company announced Tuesday.

The company raised A$100 million in the deal, which it intends to use for growth purposes.

Meanwhile, ThermoEnergy Corp. released further details of a private placement it settled on Monday. The company raised $5 million in the convertible preferred share sale.

Among new deals, CryoPort Inc. said it was seeking $3 million via a private placement of common shares. Stirling Products Ltd. meantime said it had secured a A$2.1 million mezzanine facility.

Eastern Star deal oversubscribed

Eastern Star Gas took in A$100 million via an oversubscribed private placement of equity, according to a press release.

The Sydney, Australia-based oil and gas company issued 119.1 million ordinary shares at A$0.84 each.

The per share price represents an 8.7% discount to the A$0.92 closing share price on Aug. 9 and a 5.4% discount to the five-day volume weighted average price.

"We are pleased with the significant support we received from existing shareholders including Santos, as well as from new investors," remarked David Casey, managing director, in the release.

"The capital raising strengthens the balance sheet following the acquisition of a parcel of land at Newcastle, and enables ESG to continue to pursue its ongoing growth initiatives, including exploration, evaluation and development planning."

Eastern Star's equity (Australia: ESG) closed at A$0.85.

ThermoEnergy details preferred sale

ThermoEnergy, a Little Rock, Ark.-based designer of renewable energy and power-generation facilities, detailed its recently completed private placement of convertible preferred shares in a regulatory filing.

The deal settled Aug. 9. Total proceeds equaled $5 million.

Certain Rydex|SGI Funds, which are managed by Security Global Investors, were the participating investors.

The company sold approximately 2.08 million of the preferreds, which are initially convertible into common stock at $0.24 per share.

The conversion price is a 27.27% discount to the Aug. 9 closing share price of $0.33.

Investors also received warrants for approximately 33.33 million shares. The warrants are exercisable at $0.30 - an 11.77% discount to the Aug. 6 closing share price of $0.34 - until Aug. 10, 2015.

"We are delighted to have received the $5M investment from the Rydex|SGI Funds," said Cary Bullock, chief executive officer, in a press release. "This investment will assist in strengthening the company's balance sheet and permit us to move aggressively in the treatment of industrial water and power generation markets."

"The Rydex|SGI Funds' investment will be especially helpful in achieving our strategic five-year growth plan. In particular, these assets will help ThermoEnergy execute its contract with the New York City DEP for the installation of ARP systems at the 26th Ward Water Pollution Control Plant."

ThermoEnergy's shares (Pink Sheets: TMEN) gained 2 cents, or 7.03%, to $0.35. Market capitalization is $18.79 million.

CryoPort seeks $3 million

Lake Forest, Calif.-based CryoPort has negotiated a $3 million private placement of common stock, the company said in a press release.

CryoPort intends to sell 4.5 million shares in the financing effort. Investors will also receive warrants equal to another 4.5 million shares.

The warrants are exercisable at $1.62, representing an 11.72% premium over the $1.45 closing share price on Aug. 9.

Proceeds will be used for working capital.

CryoPort's stock (OTCBB: CYRX) dropped 66 cents, or 45.52%, to $0.79. Market capitalization is $6.44 million.

CryoPort is a provider of packaging for temperature-sensitive biological materials.

Stirling inks mezzanine facility

Stirling Products secured a A$2.1 million 18-month convertible funding facility, according to a press release.

Each draw carries a 1% interest rate. The amounts drawn are convertible into shares at $0.008 - a 20% discount to the Aug. 9 closing share price of A$0.01 for the first A$700,000, at $0.01 per share for the next A$700,000, and at $0.012 - a 20% premium - for the balance.

Proceeds will be used for working capital.

Stirling's stock (Australia: STI) closed at A$0.011.

Stirling Products is a Perth, Western Australia-based marketer of animal growth promoters.

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