Gladstone eyes $50 million; Colonia plans subscription placement; China Green brings offering

By Stephanie N. Rotondo

Portland, Ore., Nov. 23 - Despite an abbreviated holiday week, the private placement arena started off with a boom, as many deals - from many sectors - flooded the marketplace.

Gladstone Commercial Corp. announced its intent to raise up to $50 million via a private placement of a new class of senior equity. Proceeds will be used for investment purposes, among other things.

Colonia Energy Corp. also brought a double-digit deal, announcing a C$35 million placement of subscription receipts. The funds will be used to finance a pending acquisition.

Meanwhile, China Green Agriculture Inc. said it will take in $20 million from a registered direct offering of common stock. The deal also includes a $5 million greenshoe.

Gowest Amalgamated Resources Ltd. said it was seeking C$6 million from a private placement of equity units. Proceeds will be used for exploration.

Also, Versatile Systems Inc. will privately place stock in its effort to raise C$4.1 million. The shares will be purchased by two of the company's directors.

In settled placements, Timberline Resources Corp. closed on $3 million from a placement of units.

Gladstone to raise $50 million

Mclean, Va.-based Gladstone Commercial, a real estate investment trust, announced a $50 million private placement of equity.

The deal priced Nov. 19, according to a regulatory filing.

Under the terms of the financing agreement, Gladstone will sell approximately 3.33 million senior common shares at $15.00 per share on a best-efforts basis. The shares will pay dividends at $1.05 per share per annum. The dividends will be declared daily and paid at $0.0875 per share per month.

The new shares are a new class of equity, the company said in a press release. They will rank above the common stock currently trading, but junior to the company's preferred shares.

In addition, the shares are callable after the fifth anniversary of issuance at $15.30 per share plus accrued and unpaid dividends.

Proceeds from the transaction will be used for investment purposes, as well as to repay debt, purchasing preferred shares and for other corporate purposes. Settlement is expected on the earlier of the financing hitting $50 million or Nov. 19, 2011.

Gladstone's stock (Nasdaq: GOOD) gained 13 cents, or 0.95%, to $13.80. Market capitalization is $118 million.

Colonia plans subscription placement

Colonia Energy intends to raise C$35 million via a private placement of subscription receipts, the company said in a press release.

The Calgary, Alta.-based energy company will issue 175 million subscriptions at C$0.20 each. They are convertible into one common share.

Proceeds will be used for the company's planned acquisition of Duce Oil Ltd. Settlement is expected by Dec. 9.

Calls seeking comment were not returned Monday.

Colonia's shares (TSX Venture: CLA) fell 2 cents, or 7.14%, to C$0.26. Market capitalization is C$13.2 million.

China Green brings direct offering

China Green Agriculture brought a $20 million registered direct offering of shares to market Monday.

The deal includes a $5 million greenshoe.

The company intends to sell approximately 1.28 million common shares at $15.60 per share. In the greenshoe, the company could sell another 320,513 shares.

The stock will be issued through China Green's wholly owned subsidiary Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.

Proceeds will be used for working capital and other general corporate purposes. Settlement is expected by Nov. 25.

The company was unavailable for comment Monday.

China Green's equity (Amex: CGA) dipped $1.69, or 9.86%, to $15.45. Market capitalization is $352 million.

China Green is a Xian, China-based agricultural fertilizer producer.

Gowest seeks C$6 million

Gowest Amalgamated is planning a C$6 million private placement of stock and units, according to a press release.

Gowest will sell approximately 18.18 million flow-through shares at C$0.22 per share. In addition, the company will sell 11.11 units at C40.18 each. The units will consist of one common share and one warrant. Warrants are exercisable at C$0.30 for two years.

Proceeds will be used for exploration activities at Gowest's Frankfield project, as well as for general corporate purposes. Settlement is expected by Dec. 15.

Calls seeking comment were not returned Monday.

Gowest's shares (TSX Venture: GWA) slipped $0.015, or 6.67%, to C$0.21. Market capital ization is C$10.8 million.

Gowest Amalgamated is a Toronto-based gold explorer.

Versatile to issue common shares

Versatile Systems will raise C$4.1 million via a private placement of common stock.

Under the terms of the non-brokered deal, the company will issue 39 million common shares at C$0.105 per share. Alessandro Benedetti and Bertrand des Pallieres, two of Versatile's directors, are the investors, purchasing 19.5 million shares each.

Proceeds will be used for general corporate purposes.

Calls seeking comment were not returned Monday.

Versatile's stock (TSX Venture: VV) declined half a cent, or 3.57%, to C$0.135. Market capitalization is C$15.4 million.

Versatile Systems is a Vancouver, B.C.-based marketing and distribution software developer.

Timberline wraps unit sale

Among completed financings, Timberline Resources said it pocketed $3 million from a private placement of units.

The Coeur D'Alene, Idaho-based company sold approximately 3 million of the units at $1.00 per unit. Each unit contained one common share and one half-share warrant. Whole warrants are exercisable at $1.50 until May 31, 2010 and at $1.75 until Nov. 15, 2011.

Proceeds will be used for exploration, working capital and general corporate purposes.

Calls seeking comment were not returned Monday.

Timberline's equity (Amex: TLR) improved 4 cents, or 3.46%, to $1.20. Market capitalization is $43.7 million.

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