Enbridge Energy pockets $496.8 million from unit sale; General Environmental raises $29.5 million

By Sheri Kasprzak

New York, Aug. 15 - As stocks made their first substantial climb in weeks, private placement activity picked up and was led by a $496.8 million offering of trust units from Enbridge Energy Partners, LP.

Stocks made a serious comeback on Tuesday, lending to a more crowded PIPE market, one sellsider said in an afternoon interview.

"This is the boost we needed," he said. "We've been pounded to death by this horrible [stock] market and now there's a light at the end of the tunnel. Things have picked up already. We just needed this kick in the [behind]."

The Dow Jones Industrial Average soared by 132.39 to end the session at 11,230,26; the Nasdaq composite index climbed 45.97 to settle at 2,115.01; and the Standard & Poor's 500 composite index gained 17.37 to close at 1,285.58.

Meanwhile, oil prices continued to slip, losing 18 cents Tuesday to close at $73.35 per barrel.

Despite the lower oil prices, Enbridge Energy Partners sold 10.8 million class C units to Enbridge Partners and CDP Infrastructures Fund GP, a subsidiary of Caisse de depot et placement du Quebec.

The units will receive quarterly distributions until Aug. 15, 2009 and will convert into class A common units on a one-for-one basis after Aug. 15, 2009.

Proceeds from the offering will be used for the company's capital expansion program, including East Texas and Southern Access expansion projects.

The stock ended the day up 17 cents, or 0.36%, at $46.97 Tuesday (NYSE: EEP).

Houston-based Enbridge is a liquid petroleum pipeline operator and natural gas processing company.

General Environmental's $25 million deal

Elsewhere in the PIPE sector Tuesday, General Environmental Management, Inc. settled a private placement of $29.5 million in principal of notes for proceeds of $25 million.

Laurus Master Fund, Ltd. bought the three-year notes, which were priced at 84.

The notes bear interest at Prime rate plus 200 basis points annually.

Laurus received warrants for 13,636,362 shares, exercisable at $0.24 each for seven years.

Proceeds from the deal are being held in escrow until General Environmental completes its acquisition of a private North American waste-management service provider.

When the proceeds are released from escrow, the principal of the note will be replaced by a restated convertible term note of which $12.5 million is convertible at $0.17 each.

Connected to the deal, the company plans to raise at least $16 million in a private placement of common or preferred stock before Sept. 30.

"We are pleased we secured $25 million in financing, which will enable the company to move forward in our next step to executing our strategic growth initiative," said Tim Koziol, chief executive officer of General Environmental, in a statement released Tuesday morning. "It is our intent to acquire one of North America's leading environmental and waste remediation companies, which will expand GEM's presence to cover regions nationwide."

On Tuesday, the company's stock lost 26.92%, or 3.5 cents, to settle at $0.095 (OTCBB: GEVM).

Based in Pomona, Calif., General Environmental provides web-based software focused on the waste-treatment sector.

High Plains leads uranium deals

Moving to Canada, uranium offerings took off with several names in the headlines.

According to one market source based in Vancouver, B.C., uranium prices have reached record highs, pushing demand for these deals.

"Commodities in general seem to be doing OK, but uranium is off the charts," he said. "A lot of it goes with oil volatility and the search for alternative energy sources. While oil is up and down and up again, uranium seems to be climbing fairly steadily."

In fact, according to a Securities and Exchange Commission filing from previous PIPE issuer International Uranium Corp., the price of uranium at the end of June was $45.50 per pound, surpassing the highest-reported spot price of $45.00 per pound previously recorded. During the third quarter, the report said, the price of uranium rose 12% and since the end of the quarter, has risen another 4% to $47.25 per pound.

Heading up those uranium offerings Tuesday was High Plains Uranium, Inc., which plans to raise up to C$8 million and at least C$6 million as part of a business combination agreement with Energy Metals Corp.

Word of the deal sent High Plains' stock up by 28.4%, or 23 cents, to close at C$1.04 (Toronto: HPU).

Energy Metals plans to buy secured convertible debentures due in three years as part of a plan to acquire a joint-venture option on High Plains' interest in Gas Hills and North Platte Complex properties in Wyoming.

The debentures bear interest at 5% for the first six months and at a Prime rate plus 300 basis points thereafter.

The debentures are convertible at C$0.93 each.

The placement is scheduled to close by Aug. 29.

"This business combination is another key in maintaining Energy Metals' leading position in the United States of controlling near-term production, low capital cost uranium assets and scarce uranium exploration, development and mining expertise," said Paul Matysek, Energy Metals' CEO, in a news release.

"With the addition of the High Plains property positions in both Texas and Wyoming, Energy Metals has added not only additional resources and exploration projects through its intended and announced joint ventures with Energy Fuels Inc. and New Horizon Uranium Corp. and Canyon Resources Corp., but the likelihood of meaningfully increasing its already dominant technical talent pool, which has more than 180 man years of in-situ recovery production experience."

Cheyenne, Wyo.-based High Plains is a uranium exploration company. Energy Metals, based in Vancouver, B.C., is also a uranium explorer.

Titan's C$5 million PIPE

In other uranium news, Titan Uranium Inc. wrapped a C$5,000,028 private placement.

The company sold 2,631,594 flow-through units at C$1.90 each.

The units include one share and one half-share warrant. Each whole warrant is exercisable at C$2.50 for two years.

The deal was placed through a syndicate of underwriters led by Canaccord Adams Inc.

Proceeds will be used for exploration and development at the company's mineral properties and for working capital.

The company's stock edged up by 1.22%, or 2 cents, to close at C$1.66 (TSX Venture: TUE).

Vancouver, B.C.-based Titan is a uranium exploration company.

Celtic plans C$17.25 million deal

Heading to the oil sector, Celtic Exploration Ltd. priced a C$17.25 million offering of up to 1 million flow-through shares.

The price per share represents a 27.7% premium to the company's C$13.50 closing stock price on Monday.

The deal is being placed through a syndicate of underwriters led by FirstEnergy Capital Corp. The offering is set to wrap up by Sept. 7.

The stock slipped by 1.85%, or 25 cents, to close at C$13.25 (Toronto: CLT).

Proceeds will be used for the company's capital expenditure program in 2006 and 2007.

Calgary, Alta.-based Celtic is an oil and natural gas exploration company.

Another Calgary, Alta.-based oil explorer, CanWest Petroleum Corp., sealed up a $14.82 million private placement Tuesday.

In the non-brokered deal, the company issued 3.9 million shares at $3.80 each to a group of investors led by Resolute Performance Fund.

Proceeds will be used to buy 2.5% gross overriding royalty on Oilsands Quest's permit lands. The purchase was expected to close Tuesday.

On Tuesday, the company's stock gained 2 cents to close at $3.75 (OTCBB: CWPC).

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