Canaco wraps C$25 million stock sale; Orckit inks equity line; San Leon to raise £3.15 million

By Stephanie N. Rotondo

Portland, Ore., Aug. 4 - Canaco Resources Inc. publicized its successful private placement of stock on Wednesday.

The company raised over C$25 million, which will be used for exploration and development.

Meanwhile, Orckit Communications Ltd. said it had signed an agreement with an investor for a $10 million three-year standby equity distribution agreement. Under the terms of the agreement, the company will issue stock at a discount.

And, San Leon Energy plc announced its intention to raise £3.15 million. That company is also selling shares at a discount.

Canaco wraps stock sale

Canaco Resources settled a private placement of stock, pocketing C$25.06 million.

The deal originally priced at C$20.02 million with a C$5.04 million greenshoe on July 19.

The Vancouver, B.C.-based company sold a total of 17.9 million common shares at C$1.40 each, representing a 10.26% discount to the July 16 closing share price of C$1.56.

Of the shares sold, 3.5 million were issued as part of the fully exercised greenshoe.

Proceeds will be used for exploration and development and for general corporate purposes.

The company did not return calls seeking comment on Wednesday.

Canaco's equity (TSX Venture: CAN) gained 6 cents, or 3.26%, to C$1.90. Market capitalization is C$263.94 million.

Orckit inks SEDA

Orckit Communications, a Tel-Aviv, Israel-based manufacturer of broadband telecommunications equipment, said it had secured a $10 million three-year standby equity distribution agreement from YA Global Master SPV Ltd.

Orckit will sell ordinary stock to the investor at a price per share equal to 95.5% of the lowest daily volume-weighted average price of the stock during the five trading days following the draw request.

The company may only issue up to $500,000 in each tranche.

Orckit's stock (Nasdaq: ORCT) fell 8 cents, or 2.81%, to $2.77. Market capitalization is $45.93 million.

San Leon to pocket £3.15 million

San Leon Energy is seeking £3.15 million from a private placement of ordinary shares, according to a press release.

The company intends to sell approximately 22.5 million of the shares at 14p per share. The price represents a discount of 8.4% to the volume-weighted average price for the 10-day period ending Aug. 3, the last trading day before the announcement.

San Leon will use the proceeds to "carry out the company's exploration and development program across its portfolio of projects in Poland, Ireland and Morocco," the release said.

"In keeping with our normal strategy of fund allocation and assigning capital to our work program, today's placing is for the group's expanded field operations," said Oisin Fanning, chairman, in the release.

"Since the acquisition of Island Oil & Gas we have been working hard to consolidate the exploration program and advance the monetization of it. Our work program continues unabated."

The company's stock (London: SLE) lost 14p to close at 15.61p on Aug. 4. Market capitalization is £66.82 million.

San Leon Energy is a Dublin-based oil and gas exploration company.

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