China Security to raise funds; Draka aims for €50.37 million; Continental Minerals eyes stock

By Stephanie N. Rotondo

Portland, Ore., Oct. 2 - Friday's private placement market saw a variety of companies coming to market, with no one industry dominating the financing arena.

China Security & Surveillance Technology Inc. brought one of the day's biggest deals, a $58.5 million registered direct offering of equity. The company intends to use proceeds in part to repay existing debt.

Draka Holding NV meanwhile said it completed a €50.37 million private placement of equity. The company also intends to raise about that much in another offering, at the same terms as the PIPE.

Elsewhere, Continental Minerals Corp. announced a C$25 million private placement of stock. A single investor is purchasing more than C$22 million of the shares.

Catalyst Pharmaceutical Partners Inc. will conduct a registered direct offering of equity, for proceeds totaling nearly $4 million. The funds will be used for clinical programs.

Also, Minotaur Resources Ltd. said it would take in A$2.5 million from an equity sale. Xcite Energy Ltd. meanwhile said it wrapped a £2.13 million placement of shares.

China Security to raise funds

China Security & Surveillance Technology will pocket $58.5 million from a registered direct offering of stock, the company said.

The company will sell 9.36 million common shares at $6.25 per share. Warrants equal to an additional 2.3 million shares are also included, and each warrant is exercisable at $8.16 for one year.

Proceeds will be used, in part, to repay a $50 million tranche A zero-coupon guaranteed senior secured convertible note held by Citadel Equity Fund Ltd.

"We are very pleased by the strong interest to our offering and to be able to sign the term sheet with Citadel to retire the tranche A notes," said Guoshen Tu, chief executive officer, in a press release. "We believe the combination of these two transactions will further strengthen our balance sheet, create additional cost savings, improve future cash flows, and enhance our capital structure. These ongoing efforts should augment our financial flexibility and help us support our strategic expansion and long-term growth."

China Security's stock (NYSE: CSR) fell 52 cents, or 7.65%, to $6.28. Market capitalization is $326 million.

Located in Shenzhen, China, China Security provides security and surveillance products and services.

Draka aims for €50.37 million

Draka Holding intends to raise €50.37 million through a private placement of stock, the company said in a news release.

The company will issue 4.06 million shares at €12.40 per share to Flint Beheer BV.

In addition, the company said it sold about 4.05 million shares at the same price as the private placement in an accelerated bookbuild offering. All told, about 8.12 million shares were sold for proceeds of €100.7 million.

Of the raised funds, about €75 million of the proceeds "will be used to strengthen the company's financial position, enabling Draka to take advantage of future growth opportunities," according to the release. The remaining funds will be used "for additional restructuring measures to lower the cost base. Measures include the intended closure of a factory, the further downscale of its automotive cable production and various efficiency measures in the Communications Group.

"In addition to the already announced expected cost savings of €50 million, these measures are currently expected to result in savings of approximately €10 million in 2010," the company said.

Settlement is expected by Oct. 7.

Draka's equity (Pink Sheets: DRAKF) ended unchanged at $16.96.

Draka Holding is an Amsterdam-based manufacturer of cables and cable systems through its operating companies.

Continental Minerals to issue equity

Continental Minerals is planning a C$25 million private placement of equity, according to a press release.

The company will sell shares of its common stock at C$1.07 per share. Zijin Mining Group Co., Ltd. has agreed to purchase approximately 21.12 million shares, for total proceeds of C$22.6 million.

The remaining portion of the financing "has been subscribed for by other non-related parties," the company said.

"We see the investment in Continental as an opportunity to aggressively expand our footprint in China by investing in a robust project in the final permitting stage," remarked Chen Jinghe, chairman of Zijin.

"Zijin Mining is a highly respected entrepreneurial mining group and the introduction of Zijin Mining will allow us to aggressively advance the permitting and development of the Xietongmen Project," added Dave Copeland, Continental's president and chief executive officer.

"Our goal is to build an economically robust project that integrates high standards of environmental performance and brings real benefits to the region. Continental and the Xietongmen Project are in a unique position at an opportune time to take advantage of China's tremendous need for copper materials, development projects and investment opportunities within its economy."

Continental's stock (TSX Venture: KMK) gained 4 cents, or 3.48%, to C$1.19. Market capitalization is C$151 million.

Continental Minerals is a Vancouver, B.C.-based resource exploration company.

Catalyst plans direct placement

Catalyst Pharmaceutical Partners announced a $3.97 million registered direct offering of stock.

The Coral Gables, Fla.-based company will issue approximately 3.97 million shares at $1.00 per share. Federated Kaufmann Funds is among the investors.

"Catalyst intends to use the proceeds from the offering to fund certain clinical studies of CPP-109 for the treatment of cocaine addiction, complete one or more non-clinical studies related to compounds recently licensed as part of the company's agreement with Northwestern University, and for general corporate purposes," according to a press release.

"We are pleased to further broaden our institutional investor base, increase market float and potential trading volume and shareholder liquidity, and develop important new relationships with additional high quality institutional investors," added Patrick J. McEnany, chairman and CEO, in the release. "The offering will allow us to continue the development of CPP-109 for the treatment of cocaine addiction and to start our development program as it relates to our license agreement with Northwestern University."

Settlement is expected by Oct. 6.

Catalyst's shares (Nasdaq: CPRX) declined 21 cents, or 17.95%, to $0.96. Market capitalization is $16.5 million.

Minotaur to raise A$2.5 million

Dulwich, South Australia-based gold explorer Minotaur Exploration arranged an A$2.5 million private placement of equity, according to a press release.

The company will issue 10.4 million ordinary shares at A$0.24 per share. The price per share represents a 17.5% discount to the company's 30-day volume weighted average stock price as of Sept. 28.

OZ Minerals Ltd. will participate in the deal in an effort to maintain its 10% equity interest.

Proceeds will be used for development projects at Poochera and Tunkillia, as well as for exploration and working capital.

Minotaur's stock (Australia: MEP) closed at A$0.28 on Friday.

Xcite wraps stock sale

Xcite Energy took in £2.13 million from a private placement of ordinary shares.

The company sold 10.14 million of the shares at 21p each.

"The net proceeds will be used to assist the company in securing the necessary industry partners, and to further the commercial arrangements, that are expected to enable the company to move forward to the next phase of its development of the Bentley field, and for general working capital purposes," the company said in a statement.

"We are delighted with the support of existing and new investors in this fundraising, who have understood the value creation opportunity that currently exists in Xcite Energy, through its Bentley field," remarked Richard Smith, CEO. "The company continues to make progress in planning the next phase of the Bentley field development, with the securing of industry partners being the priority."

Xcite's equity (London: XEL) ended at 21.1p. Market capitalization is £13.8 million.

Xcite Energy is an oil exploration and development company based in Tortola, Virgin Islands.

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