African Medical secures credit line; Cascade settles equity financing; Enova wraps stock sale

By Stephanie N. Rotondo

Portland, Ore., Oct. 30 - The private placement market saw a mish-mash of deals coming to market Friday, with no one sector dominating.

African Medical Investments plc said it had secured a £28.7 million credit line with a fund managed by Harbinger Capital Partners. The company intends to use funds from the three-year facility to further its strategy in providing health care in Africa.

Meanwhile, Cascade Bancorp raised $65 million from a private placement of equity. The proceeds will be used for the repayment of debt, as well as for additional capital at its bank.

Enova Systems Inc. took in nearly $10.4 million from a private placement of stock. Among the investors participating in the deal were special situations and pension funds.

Elsewhere, VLOV Inc. raised just over $4 million in the first tranche of its planned $8 million placement of convertible preferreds. The deal priced Oct. 27.

Among other new deals, Opmedic Group Inc. is aiming to raise C$2 million via a placement of common stock.

African Medical secures credit

African Medical negotiated a £28.7 million line of credit with Harbinger Capital Partners Master Fund I, Ltd.

According to the terms of the credit line, African Medical can draw on the facility every quarter until the first quarter of 2013. Upon maturity, Harbinger will have 50% plus 1,000 shares of the total issued capital of African Medical.

The first draw will include approximately 74 million ordinary shares for proceeds of £13.3 million. The price per share will range from 23p in the first quarter of 2010 to 71p per share in the first quarter of 2013.

Proceeds will be used to advance the company strategy of health care facilities, boutique hospitals and Well Woman Clinics across Africa for the next three years.

"This agreement with Harbinger secures the financing required to achieve the rapid expansion plan for our boutique hospitals, Well Woman Clinics and trauma centers across Africa," commented Vivek Solanki, chief executive officer, in a press release.

"Our target of having 10 sites operational by 2012 in [sic] now well within our grasp. The model that we have developed, combining state-of-the-art facilities and world class healthcare delivered by our highly trained medical professionals, without incurring the high costs associated with operating large integrated hospitals, is proving highly popular.

"I look forward to rolling out our additional facilities in the future, bringing our innovative approach to private healthcare to more people across the continent."

African Medical's equity (London: LKI) closed at 19.25p. Market capitalization is £22.5 million.

African Medical Investments is a London-based healthcare provider in Africa.

Cascade settles equity financing

Cascade Bancorp took in $65 million from a private placement of common shares, the company announced.

The deal settled Oct. 29.

The Bend, Ore.-based financial holding company sold the shares at $0.87 per share. David F. Bolger purchased $25 million of the stock, while Lightyear Fund II LP bought the remaining $40 million.

Proceeds will be used to repay trust preferred securities. Any remaining funds will be added to the capital base of the company's Bank of the Cascades.

Calls seeking comment were not returned Friday.

Cascade's equity (Nasdaq: CACB) fell a penny, or 0.99%, to $1.00. Market capitalization is $28.6 million.

Enova wraps stock sale

Enova Systems raised $10.35 million from a private placement of equity, according to a regulatory filing and subsequent press release.

The company sold approximately 10.34 million common shares at $1.00 per share. Investors participating in the financing included some Special Situations Funds, Stitching Shell Pensioenfonds, Shell Contributory Pension Fund, Shell Overseas Contributory Pension Fund, Silicon Prairie Partners, LLP and Eruca Ltd.

Proceeds will be used for working capital and strengthen the company's balance sheet.

Calls seeking comment were not returned Friday.

Enova's shares (Amex: ENA) gained 3 cents, or 2.44%, to $1.26. Market capitalization is $25.8 million.

Enova Systems is a Torrance, Calif.-based manufacturer of digital power-control systems for automobile engines.

VLOV closes first tranche

VLOV will conduct an $8 million private placement of series A convertible preferred shares, the company said in a regulatory filing.

The deal priced on Oct. 27 and $4.14 million was raised at that time.

VLOV will sell a total of approximately 2.79 million of the preferred shares at $2.86 per share. The preferreds are convertible into common stock at $2.86 per share.

In addition, investors will receive warrants for an additional 1.39 million common shares. The warrants are exercisable at $3.43 for three years.

In the first tranche of the deal, VLOV issued approximately 1.44 million preferreds and warrants equal to 723,126 common shares.

VLOV's shares (OTCBB: VLOV) finished the day unchanged at $5.50.

VLOV is a Shishi City, China-based seller of casual apparel and clothing products.

Opmedic to raise C$2.1 million

Opmedic Group is seeking C$2.1 million to supplement its financial resources, the company said in a press release.

As such, the company will undertake a bought-deal private placement of equity. Opmedic will sell 1.05 million common shares at C$2.00 per share.

Settlement is expected by Nov. 20.

Opmedic's stock (Toronto: OMG) held steady at C$2.00. Market capitalization is C$32.1 million.

Opmedic Group is a Mount Royeal, Quebec-based fertility, laboratory and genetic services provider.

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