Avanti raises £70 million; United Protection gets equity line; Mountain Lake settles placement

By Stephanie N. Rotondo

Portland, Ore., July 12 - Avanti Communications Group plc said it had completed a private placement of equity on Monday, raising £70 million.

The shares were issued at a price about 12% less than the current market price. Proceeds will be used, in part, to repay outstanding debt.

Meanwhile, United Protection Security Group Inc. announced it had secured a C$5 million credit line. The company intends to draw upon the facility in order to support its growth initiatives.

And, Mountain Lake Resources Inc. completed a deal, taking in more than it had originally intended. The company had expected to raise C$2.15 million, but actually raised C$2.16 million.

Avanti raises £70 million

London-based Avanti Communications settled a £70 million private placement of equity, according to a press release.

The placement is conditional upon receiving shareholder approval at a July 28 meeting.

Avanti sold approximately 16.27 million ordinary shares at 430p each. The price per share represented a 12.87% discount to the July 12 closing share price (London: AVN) of 485.36p.

Approximately £53 million will be used to repay principal, interest and an early repayment discount fee on fixed-term facilities that were used to finance Avanti's first satellite, Hylas. Remaining funds will be used to procure a third satellite and to provide additional resources to redomicile the Hylas 2 assets offshore.

Avanti is a provider of satellite broadband internet services. Market capitalization is £339.58 million.

United Protection gets credit

United Protection Security Group, an Edmonton, Alta.-based security services provider, has negotiated a C$5 million equity line facility with Dutchess Opportunity Cayman Fund Ltd.

The company will sell common stock to the investor over the course of three years. The price per share will be equal to 95% of the prevailing market price of the stock at the time of the draw request.

"This new equity line facility gives us a flexible and inexpensive access to capital to support our growth initiatives," said F. Ramsoondar, chief financial officer, in a press release. "By demonstrating access to capital and the sequential improvement of our financial performance we are sending a clear and positive message to our shareholders."

United Protection's stock (TSX Venture: UZZ) gained half a cent, or 6.67%, to C$0.08. Market capitalization is C$3.52 million.

Mountain Lake deal oversubscribed

Mountain Lake Resources wrapped an oversubscribed private placement of units, raising C$2.16 million.

The deal originally priced at C$1.75 million on June 21 and was increased to C$2.15 million on June 23.

The company issued approximately 4.91 million units at C$0.50 each. The units held one common share and one half-share warrant.

Whole warrants are exercisable at C$0.75 for two years. The strike price represents a 33.92% premium over the previous closing share price of C$0.56.

Proceeds will be used for exploration and development on the company's Newfoundland properties, as well as for working capital.

Mountain Lake's equity (TSX Venture: MOA) fell 3 cents, or 5.36%, to C$0.53. Market capitalization is C$16.25 million.

Mountain Lake Resources is a Vancouver, B.C.-based diversified junior mining and exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.