Prospect Capital, WSFS close stock sales; Bandanna secures investment; Cazaly seals financing

By Stephanie Rotondo

Portland, Ore., Sept. 24 - Thursday's private placement market saw a few financial companies completing deals and many Australian issuers coming to market.

Prospect Capital Corp. said it completed a $25.26 million equity placement. WSFS Financial Corp. also settled a private stock sale, taking in $25 million.

In news from Down Under, Bandanna Energy Ltd. announced a plan to raise A$22.52 million via a private placement of ordinary stock. The shares will be sold to a Korean investor that will also be marketing Bandanna's products in the Korean market.

Meanwhile, Cazaly Resources Ltd. said it would raise A$4 million, also from an equity private placement. The shares were sold to a Chinese investor.

Also, Globe Metals & Mining Ltd. wrapped a A$5 million placement of shares. The company said the financing was "keenly sought" by investors.

Elsewhere, DeeThree Exploration Inc. said it would sell flow-through shares in an effort to raise C$4 million. The deal also includes a C$1 million greenshoe.

Prospect Capital closes deal

Prospect Capital raised $25.26 million from a private placement of stock, according to a regulatory filing.

The company sold approximately 2.81 million common shares at $9.00 per share.

Proceeds will be used for general corporate purposes.

Houlihan Lokey and Ladenburg Thalman acted as joint placement agents, according to a source familiar with the matter.

Calls seeking comment went unreturned Thursday.

Prospect's equity (Nasdaq: PSEC) fell 94 cents, or 8.55%, to $10.05. Market capitalization is $521 million.

Prospect Capital is a New York-based investment bank.

WSFS settles equity financing

Elsewhere in the financial sphere, WSFS Financial wrapped a $25 million private placement of stock.

The company sold 862,096 common shares at $29.00 per share to Peninsula Investment Partners LP. The investor also received warrants for 129,310 additional shares, exercisable at $29.00 for 10 years.

WSFS' stock (Nasdaq: WSFS) dropped $1.03, or 3.62%, to $27.39. Market capitalization is $169 million.

WSFS Financial is a Wilmington, Del.-based bank holding company.

Bandanna to raise A$22.52 million

Among Australian issuers, Bandanna Energy brought a A$22.52 million private placement of equity to market.

The company intends to sell approximately 37.53 million ordinary shares at A$0.60 per share to SamTan Aures Pty Ltd., a Korean energy company.

Following the completion of the deal, Samtan will hold 10% equity interest in Bandanna and will market Bandanna's coal in the Korean market. SamTan will also have the right to negotiate the purchase of 20% of the company's coal from its Bowen Basin projects.

SamTan's managing director, Park Soon Il, will also join Bandanna's board of directors.

"Bandanna looks forward to welcoming SamTan, a significant and well regarded international energy company, to its register and Mr. park to the board," remarked Jeremy Barlow, chairman, in a statement.

"This strategic investment in Bandanna is an important step forward for the company and is a strong vote of confidence in the quality of our assets and corporate strategy. Bandanna has a range of exciting projects that it is pursuing and the investment by SamTan allows Bandanna to focus on these projects and continue to add value to its assets."

Bandanna's stock (Australia: BND) closed at A$0.54.

Bandanna Energy is a North Sydney, Australia-based oil and gas exploration company.

Cazaly plans stock sale

Cazaly Resources, another Australian-based issuer, negotiated a A$4 million private placement of ordinary shares, the company said in a press release.

The company will issue 10 million of the shares at A$0.40 each. Investors will also receive 5 million options. The options are exercisable at A$0.48 for two years.

"The investor is a private company based in Southern China," the company said in the release. "It is a large privately owned company with over A$100 million in annual revenue. It supplies to major manufacturers which use extensive steel products and other inputs. The company has close commercial relationships with several mid to large sized steel mills in China."

Funds from the transaction will be used "primarily to advance the company's Parker Range iron ore project and for the further exploration over the company's various iron ore projects and for working capital purposes."

Cazaly's shares (Australia: CAZ) ended at A$0.35.

Cazaly Resources is a Leederville, Australia-based mineral exploration company.

Globe Metals secures A$5 million

Globe Metals & Mining, a West Perth, Australia-based uranium and specialty metals company, said it pocketed A$5.2 million from a private placement of stock.

The company sold 20 million ordinary shares at A$0.26 per share.

Globe Metals said that the deal was "keenly sought by both professional and sophisticated investors in Australia, Asia and Europe." Upon completion of the deal, the company's cash position was A$6.7 million.

"The quality of the institutional investors joining our share register in this share placement is testament to the quality of our team's work to date on the Kanyika Niobium Project in Malawi," said Globe's managing director, Mark Sumich, in a press release.

"With the funding for the BFS and Globe's planned activities for 2010 secured, Globe is continuing down the track of becoming the world's fourth major supplier of ferro-niobium, with production commencing in 2012."

Globe's stock (Australia: GBE) finished the day at A$0.30.

DeeThree to raise exploration funds

DeeThree Exploration will conduct a C$4 million private placement of flow-through shares, according to a press release.

The deal also includes a C$1 million greenshoe.

The company will sell 1.6 million of the shares at C$2.50 per share.

Proceeds will be used for ongoing exploration activities.

Calls seeking comment went unreturned Thursday.

DeeThree's equity (TSX Venture: DTX) slipped 34 cents, or 13.60%, to C$2.16. Market capitalization is C$1.25 million.

DeeThree Exploration is a Calgary, Alta.-based capital pool company.

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