Penford seals $40 million; Nevada Copper to get C$20.59 million; Seeing Machines issues shares

By Devika Patel

Knoxville, Tenn., April 9 - The private placements market saw just a few deals on Friday, with only one sizable U.S. deal closing.

Penford Corp., a Centennial, Colo.-based company, said it secured $40 million by selling two series of preferred stock to Zell Credit Opportunities Master Fund, LP as part of the company's recapitalization efforts.

Nevada Copper Corp., meanwhile, said it will raise C$20.59 million in a brokered private placement of stock, which will provide capital for the company's Pumpkin Hollow Property. The company is based in Vancouver, B.C.

Australia's Seeing Machines Ltd. announced it obtained £3.28 million in a private placement of shares. Company shares (London: SEE) jumped 24.7% on Friday, or 0.71p, closing at £3.59.

Penford wraps $40 million

Penford sold 100,000 of its 15% series A cumulative non-voting, non-convertible preferred shares and 100,000 series B voting convertible preferreds to Zell Credit Opportunities on April 7.

On Thursday, the company announced that it had completed a recapitalization eliminating $39 million of its debt in fiscal year 2010. The proceeds of the preferred sale were used to pay down some of Penford's bank debt, so the company now has only $15 million in bank loans remaining outstanding.

This recapitalization "provides the company with funding and flexibility to pursue growth in specialty products and return opportunities designed to enhance shareholder value," Penford said in a press release Thursday.

The series A preferreds are subject to mandatory redemption on April 7, 2017 at par plus dividends. At any time after April 7, 2012, the company may redeem the share series A preferreds at par plus dividends. The series B preferreds may be converted into common shares at a conversion rate of 10 common shares of per preferred.

Penford is a developer, manufacturer and marketer specialty, natural-based ingredient systems for a variety of industrial and food applications. Its shares (Nasdaq: PENX) fell 2.23% Friday, or 23 cents, closing the week at $10.10.

Nevada Copper gets C$20.59 million

Copper explorer Nevada Copper said it plans to raise funds for development of its showcase Pumpkin Hollow Property by selling 6.75 million common shares at C$3.05 apiece for C$20.59 million.

Pumpkin Hollow is an iron oxide copper-gold deposit estimated to have 9.3 billion pounds of copper. The company reported drill results from the project in late March.

"Step out drilling in the East Deposit continues to intersect significant zones that confirm the continuity of high grade mineralization," president and chief executive officer Giulio Bonifacio said in a March 23 press release.

"Several follow up holes are planned as part of the 25,000 meter drilling program currently underway. We believe the drilling results to date will have a positive impact on an already robust economic profile."

The private placement will be conducted by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Scotia Capital Inc. There is a C$3.09 million greenshoe.

Settlement is expected April 27.

Vancouver, B.C.-based Nevada Copper's shares (Toronto: NCU) dropped 1.23%, or 4 cents, closing at C$3.21 Friday.

Seeing Machines: £3.28 million

Canberra, Australia-based Seeing Machines said it raised £3.28 million in a private placement of shares priced at 3.5p each, a 22% premium to the closing share price on April 8.

The company, which develops computer-based imaging software systems, sold 93,649,478 ordinary shares via broker Daniel Stewart & Co. plc.

"I am delighted to announce that the company has raised £3.3m at a significant premium to the company's current share price," chief executive officer Nick Cerneaz stated.

"This placing follows on from the excellent progress the company has made in the last few months in winning new contracts within the mining sector. The successful placing also highlights the market support for the company's strategy to focus on the mining sector for expansion of the DSS business in the short term."

The Driver State Solution is an active system developed by Seeing Machines to monitor the driver of a vehicle for distraction and fatigue events and provides a series of interventions aimed at managing these events and averting potential disasters.

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