UTStarcom plans private stock sale; ICO eyes $30 million; MBMI to sell units; Adriana ups deal

By Stephanie N. Rotondo

Portland, Ore., Feb. 1 - The bulk of PIPE deals came from Canadian issuers Monday, but it was U.S.-based companies that brought the day's biggest financings.

UTStarcom Inc., for one, brought a $48.5 million private placement of equity to market. The company will sell shares to three investors, and proceeds will be used to advance the company's growth strategy.

ICO Global Communications (Holdings) Ltd. also announced a large deal, a $30 million private placement of stock. The placement is part of a larger effort to raise the funding, in which the company will conduct a rights offering. However, three investors have agreed to backstop the offer and will purchase any remaining shares in a private placement. The structure is designed to ensure that the company will raise the total $30 million.

Meanwhile, MBMI Resources Inc. said it would take in C$5 million from a private placement of units. Proceeds will be used for exploration work.

Also, Adriana Resources Inc. announced it had increased a private placement of stock. The company is now seeking C$5 million.

UTStarcom plans private stock sale

UTStarcom will pocket $48.5 million from a private placement of stock, according to a press release.

Beijing E-Town International Investment and Development Co., Ltd., Ram Max Group Ltd. and Shah Capital Management are the investors for $25 million, $12.5 million and $11 million, respectively.

UTStarcom will sell common shares to the investors at $2.20 per share.

"We are very pleased to announce this relationship with and commitment from the Beijing Development Area and the investment from Ram Max and Shah Capital," said Peter Blackmore, chief executive officer and president of UTStarcom, in the release. "The relationship with Beijing Development Area is consistent with UTStarcom's growth strategy of focusing on selective IP-based infrastructure products and services in high growth regions of Asia, particularly China."

"UTStarcom's growth strategy is in good alignment with the series of guidelines recently issued by China's State Council to push forward network convergence among telecom, cable television, and internet companies. This relationship will contribute significant financial and strategic value to UTStarcom, including strengthening our relationships and presence in China, and better positioning UTStarcom to achieve profitable growth in the future."

Settlement is expected by March 31.

UTStarcom's stock (Nasdaq: UTSI) gained 6 cents, or 2.78%, to $2.22. Market capitalization is $291 million.

UTStarcom is an Alameda, Calif.-based provider of IP-based, end-to-end networking solutions and international service and support.

ICO seeks up to $30 million

ICO Global Communications will take in up to $30 million via a private placement of equity, according to a regulatory filing and subsequent press release.

The financing is part of a $30 million backstopped rights offering. The investors - including Eagle River Partners LLC, Highland Capital management LP and Harbinger Capital Partners Masters Fund I, Ltd. - will purchase the shares should the rights offering not be completed for the total proceeds.

Eagle River has committed a maximum of $17.25 million, while Highland and Harbinger have committed $8.5 million and $4.25 million, respectively.

The terms of the rights offering and private placement are the same, with ICO issuing class A common shares at $0.70 per share.

"The actions taken by our board are aimed at achieving two key objectives," remarked Ban Wolff, chairman and acting CEO, in the release. "First, we have secured commitments for capital that we believe should be adequate to fund our efforts for at least the next two years. Second, we have structured the capital raise and adopted a tax benefits preservation plan in a manner intended to minimize inadvertent negative impacts on the preservation of our substantial tax losses that could result from significant changes in our stockholder base."

Proceeds will be used for ongoing operational expenses, as well as for the potential acquisition or investment in complementary businesses and capital expenditures.

ICO's equity (ICOG) improved by 7 cents, or 5.93%, to $1.25. Market capitalization is $240 million.

ICO Global Communications is a Reston, Va.-based mobile satellite services company.

MBMI to issue units

MBMI Resources intends to raise C$5 million from a non-brokered private placement of units.

The company will sell 25 million units at C$0.20 each. The units will contain one common share and one warrant. The warrants are exercisable at C$0.30 for three years.

Proceeds will be used for exploration and development work at the company's Philippine nickel mineral properties, as well as for general corporate purposes.

Calls seeking comment were not returned Monday.

MBMI's shares (TSX Venture: MBR) dropped 3 cents, or 13.64%, to C$0.19. Market capitalization is C$18.3 million.

MBMI Resources is a Vancouver, B.C.-based nickel mining company.

Adriana increases deal

Adriana Resources announced it had upsized a previously announced private placement of common stock.

The company is now seeking up to C$5 million form the non-brokered financing. The deal originally priced at C$4 million on Dec. 16, and C$1.2 million settled Dec. 31.

Adriana will issue a total of 5.62 million flow-through common shares at C$0.89 each. Approximately 1.35 million units were sold in the Dec. 31 tranche.

Proceeds will be used for exploration.

Adriana's stock (TSX Venture: ADI) ended unchanged at C$0.50. Market capitalization is C$34.8 million.

Adriana Resources is a Toronto-based mineral exploration company.

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