Cascade extends date for financing deal; Liquidation World plans sale; Corgenix adds investor

By Stephanie N. Rotondo

Portland, Ore., July 16 - Cascade Bancorp said Friday that it had extended the deadline on a conditional financing agreement for the second time in just over a month.

The company had previously entered into an agreement with two investors to provide $65 million via a private placement of stock. The deal is conditioned upon the company raising anther $150 million from other transactions.

Meanwhile, Liquidation World Inc. said it was seeking C$10 million via a private placement of common shares. The company is selling the shares at a discount.

Corgenix Medical Corp. announced a $2 million private placement of equity with a single investor. According to a company spokesperson, the deal could result in funds up to $3 million if all warrants are exercised.

Cascade extends deal deadline

Cascade Bancorp extended for the second time the deadline by which a previously announced private placement of equity had to be completed.

The company had previously entered into a financing agreement with David F. Bolger and Lightyear Fund II LP to provide $65 million on Oct. 29, 2009. The deadline was first extended on June 2 and was again extended Friday to July 30.

In order to satisfy the terms of the agreement, the Bend, Ore.-based bank holding company must raise at least $150 million via other private financing transactions.

The company is selling common stock to Bolger and Lightyear at $0.87 per share. The price per share reflects a 16.09% discount to the Oct. 29 closing share price of $1.01.

"We continue to be encouraged by a heightened level of activity in the capital markets as we seek to complete our capital raise," said Patricia L. Moss, chief executive officer, in a press release.

"The continued support of Lightyear and Mr. Bolger are sincerely appreciated, as is their shared confidence in our company. We continue our efforts to raise the additional capital required to consummate the transactions under the securities purchase agreements."

Proceeds will be used to repay trust preferred securities as well as to provide additional capital for Bank of the Cascades.

Cascade's stock (Nasdaq: CACB) was unchanged at $0.42. Market capitalization is $11.83 million.

Liquidation World to sell stock

Liquidation World, a Calgary, Alta.-based retailer, said it will conduct a best-efforts private placement of common shares in an effort to raise C$10 million.

The company will issue approximately 11.76 million of the shares at C$0.85 each. The price per share represents a 24.7% discount to the July 15 closing share price of C$1.06.

Proceeds will be used for general corporate purposes and working capital. Settlement is expected by Aug. 5.

The company did not return calls seeking comment on Friday.

Liquidation's shares (Toronto: LQW) dropped 9 cents, or 8.49%, to C$0.97. Market capitalization is C$17.51 million.

Corgenix adds Wescor as investor

Corgenix Medical will raise at least $2 million via a private placement of common stock, according to a regulatory filing.

Wescor Inc. is the investor. The deal was inked July 12.

Corgenix will sell the stock at $0.15 per share. The shares will be sold in three tranches, with a total of approximately 13.33 million shares being issued.

Additionally, the investor will receive warrants equal to another 6.67 million shares. The warrants are exercisable at $0.15 for five years.

The price per share and strike price of the warrants is a "nice premium to the market," according to William "Bill" Critchfield, chief financial officer of the company.

Critchfield told Prospect News that, assuming all the warrants are exercised, the company would actually raise $3 million from this financing.

The funds will be used "primarily for expansion capital," he said. Proceeds could also be used for marketing efforts, to "fill some holes personnel-wise" and for "maybe a little bit of debt retirement."

Critchfield added that Wescor would be an "extremely good" financial and business partner. He said that the investor had previously approached the company regarding a potential investment and "one thing led to another."

"There was definite interest on both sides," he said. "We're very excited about it. It's the most important single event in our history and that is going back 20 years."

He noted that a conference call is scheduled for Wednesday and that the financing would likely be discussed.

Corgenix's equity (OTCBB: CONX) fell a cent, or 9.09%, to $0.10. Market capitalization is $3.1 million.

Corgenix Medical is a Denver-based manufacturer of diagnostic kits for immunology disorders, vascular diseases and bone and joint disorders.

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