Allana offers units; Power-One, China Recycling tap single buyers; Nordic sells convertibles

By Kenneth Lim

Boston, April 23 - Allana Resources Inc. said it could be seeking more capital even after a C$1.5 million unit placement that is currently in the pipeline.

Power-One, Inc. announced a $60 million convertible investment by Silver Lake Sumeru to fund a note repurchase program.

Nordic Oil and Gas Ltd. plans to raise C$3 million through a private offering of convertible debentures for exploration and development.

China Recycling Energy Corp. raised $2 million through a stock placement to a single investor.

Allana plans C$1.5 million deal

Allana Resources plans to raise up to C$1.5 million through a non-brokered private placement of stock and warrant units.

The company will sell up to 11.11 million units at C$0.135 apiece. Each unit comprises one common share and one two-year warrant that is exercisable at C$0.20. Allana common stock (TSX: AAA) closed at C$0.125 on Thursday, unchanged from the previous session.

The company has a market capitalization of C$7.5 million.

Proceeds will be used to explore and develop Allana's potash project in Ethiopia and for general working and corporate purposes.

Toronto-based Allana Resources is a potash mining company.

The Ethiopia project is currently in very early stages, and the proceeds will be used to drill five or six holes and fund initial tests, Allana president and chief executive Farhad Abasov told Prospect News.

"This will just be the first phase of exploration," he said.

The company could seek to raise more funds related to that project, Abasov added.

"Probably sometime later this year," he said. "We'll see how the work goes, depending on the results."

Abasov said he was satisfied with how the units priced.

"Given that the current market is not favorable to capital raising, I'd say I'm satisfied," he said.

Power-One, Silver Lake strike deal

Power-One plans to place $60 million of convertible notes and convertible preferred stock to Silver Lake Sumeru.

The deal involves $23.6 million of 10% convertible preferred stock, $36.4 million of 6% senior convertible notes due 2019 and 8.7 million seven-year warrants.

The notes will pay a 6% coupon in the first year, 8% in the second year and 10% after that.

The preferreds and notes will be convertible into Power-One common stock at $1.35 per common share, a 42.1% initial conversion premium over the April 23 closing price.

The warrants will be exercisable at $1.33.

Power-One common stock (Nasdaq: PWER) closed lower by 5% or $0.05 at $0.95 on Thursday. The company's market capitalization is $83.6 million.

Proceeds will be used to repurchase $21.75 million of 8% senior secured convertible notes due 2013, to fund strategic initiatives, to provide working capital needs and for general corporate purposes.

Camarillo, Calif.-based Power-One is a designer and maker of power conversion and power management products.

As part of the deal, Silver Lake Sumeru will nominate two appointees to the Power-One board of directors and have the right to nominate one independent candidate to the board beginning at the 2010 annual meeting.

"We are pleased to announce this agreement with Silver Lake Sumeru and believe that this relationship will significantly strengthen our execution capabilities, create a more effective capital structure and position us to deliver long-term shareholder value," Power-One chief executive Richard Thompson said in a statement. "Silver Lake Sumeru brings a wealth of technology focus and operational expertise, and we are excited to partner with them as we take the company to the next level of performance and profitability."

Silver Lake Sumeru managing director Kyle Ryland added: "Silver Lake Sumeru is committed to providing technology companies transformational capital and expertise in order to pursue growth opportunities and profitability. Power-One fits well with our investment strategy and we look forward to working closely with the company."

Nordic to sell convertibles

Nordic Oil and Gas is offering C$3 million of three-year 15% convertible secured debentures through a private placement.

The debentures will have an initial conversion price of C$0.20, a 100% premium to its April 22 close. Nordic common stock (TSX: NOG) rose 10% or C$0.01 to close at C$0.11 on Thursday. Nordic's market capitalization is C$5.2 million.

The debentures will be secured by a first charge on the company's Lloydminster property.

Proceeds will be used to continue Nordic's exploration and development drilling initiatives in Alberta and Saskatchewan.

Nordic is an oil and gas company based in Winnipeg, Man.

"With our stock currently trading at present levels, some may view the C$0.20 conversion rate as being high; however, it is our view that this rate is more than fair in light of the three-year conversion term and the 15% return on the investment," Nordic chairman and chief executive Donald Benson said in a statement.

China Recycling sells to investor

China Recycling placed $2 million of its common stock to Great Essential Investment, Ltd.

The placement comprised about 2.35 million shares at $0.85 apiece. China Recycling common stock (OTCBB: CREG) closed unchanged at $0.47 on Thursday. The company's market capitalization is $17.1 million.

Proceeds will be used to fund capital expenditures and other working capital in China.

China Recycling is a Shanghai-based recycling energy company. It was formerly called China Digital Wireless, Inc.

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