YRC wraps tranche; Artistry seals $4.6 million; Cadan deal oversubscribed; SinoHub plans sale

By Stephanie N. Rotondo

Portland, Ore., Feb. 24 - YRC Worldwide Inc. settled one of the Wednesday's biggest PIPE deals, according to regulatory documents.

The company raised nearly $50 million in the first tranche of its private placement of unsecured convertible notes. The total size of the deal is $70 million, and the remaining funding is expected to come once certain legal proceedings have concluded. The proceeds will be used to pay off debt.

Away from that, financings around the $4 million mark were quite popular.

Artistry Publications Inc., for one, said it raised $4.6 million from a private placement of units. For another, Cadan Resources Corp. announced it had pocketed C$4.37 million from a private placement of units. That deal was heavily oversubscribed.

Also, SinoHub Inc. said it was seeking $4.1 million via a private placement of equity. The funding is expected to help the company achieve its growth plans.

YRC wraps first tranche

YRC Worldwide took in $49.8 million in the first tranche of its previously announced private placement of unsecured convertible notes, according to a regulatory filing and subsequent press release.

The Overland Park, Kan.-based transportation company is selling $70 million of the notes. The deal originally priced Feb. 11 and the first portion closed Feb. 23.

The 6% notes mature in 2014 and are convertible into common shares at an initial conversion price of $0.43 per share.

The remaining $20.2 million is expected to settle once legal proceedings regarding put rights on the company's 5% and 3 3/8% contingent convertibles is concluded.

"We are pleased to announce the funding into escrow and the first issuance of notes for the private placement transaction which will allow us to satisfy our remaining 2010 note obligations," stated Bill Zollars, chairman and chief executive officer, in the release.

"With this financial distraction removed, we can continue to move forward with increasing our profitable shipment levels and accelerating our year-over-year operating improvements."

Also, YRC said that on Feb. 19, substantially all of its class A convertible preferred shares were converted to common stock as a result of shareholder approvals secured at a special meting held Feb. 17.

YRC's stock (Nasdaq: YRCW) gained $0.0356, or 9.62%, to $0.4056. Market capitalization is $23.5 million.

Artistry seals $4.6 million

Artistry Publications settled a $4.6 million private placement of units, the company announced.

The deal closed Feb. 23.

The Chongqing, China-based company sold units consisting of 100,000 common share and 50,000 warrants. A total of 1.4 million shares and 701,126 were issued and each unit sold at $3.28. The warrants are exercisable at $4.20 for four years.

"This equity investment is well timed for our short term initiatives, but we are grateful and committed to our shareholders for the long term," remarked Yiyou Ran, chairman and CEO, in a press release. "We have spent several years on building a fundamentally sound company that can flourish domestically."

Artistry's equity (OTCBB: APBS) improved by 50 cents, or 14.29%, to $4.00. Market capitalization is $52.3 million.

Artistry Publications is a cemetery developer and provider of cemetery products and services.

Cadan deal oversubscribed

Cadan Resources' previously announced private placement of units was oversubscribed, the company said in a press release, resulting in total proceeds of C$4.37 million.

The deal originally priced for up to C$2.98 million on Jan. 14.

The company issued approximately 5.14 million of the units at C$0.85 each. The units consisted of one common share and one warrant, which is exercisable at C$1.25 for 18 months.

Brett Taylor, president, and John D. Anderson, chairman, purchased 550,000 and 60,000 of the units, respectively.

Proceeds will be used for work at the company's Philippine mineral properties, as well as for general working capital.

Calls seeking comment were not returned Wednesday.

Cadan's shares (TSX Venture: CXD) increased 2 cents, or 2.17%, to C$0.94. Market capitalization is C$26 million.

Cadan Resources is a Vancouver, B.C.-based gold, silver and copper exploration company.

SinoHub announces unit sale

SinoHub, a Shenzen, China-based provider of supply-chain management services, brought a $4.1 million private placement of equity to market.

The company intends to sell approximately 1.36 million common shares at $3.00 per share. Investors will also receive a half-share warrant for each share purchased. Whole warrants are exercisable at $3.25.

Proceeds will help to fund growth opportunities.

SinoHub's equity (Amex: SIHI) fell 36 cents, or 9.45%, to $3.45. Market capitalization is $83.8 million.

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