Golden Telecom settles $20.4 million stock offering; Mart to raise C$33 million

By Laura Lutz

Des Moines, July 19 - International companies dominated PIPEs news on Thursday.

Moscow-based Golden Telecom, Inc. announced a $20.4 million sale of stock to OAO Rostelecom.

The telecom provider sold 392,988 shares for $51.95 each.

Rostelecom acquired the shares under an agreement dated Aug. 19, 2003. The placement settled on July 17.

"This investment confirms Rostelecom's confidence in our strategy and prospects," Jean-Pierre Vandromme, chief executive officer of Golden Telecom, said in a news release.

"We intend to use the proceeds for financing our ambitious growth plans including roll out of residential broadband networks and further expansion in the long distance market."

The company's stock lost $1.33, or 2%, to close at $67,83 on Thursday before dropping another 83 cents in after-hours trading (Nasdaq: GLDN).

Canadian resource companies were, as usual, well represented among the day's stories.

Calgary, Alta.-based Mart Resources, Inc. announced a C$33 million private placement of units.

The company plans to sell up to 60 million units of one share and one half-share warrant at C$0.55 per unit. Each whole warrant will be exercisable at C$0.75 for 18 months.

The company said it will use the proceeds for ongoing drilling and development operations on its three Nigerian oil field properties and for general working capital.

Mart is an oil and gas exploration and development company. Its shares dropped C$0.02, or 1.72%, to close at C$1.57 on Thursday (TSX Venture: MMT).

Vaaldiam plans C$26.55million offering

Vaaldiam Resources Ltd. priced and then upsized a C$26.55 million private placement of subscription receipts.

The company plans to sell 21.5 million subscription receipts at C$0.90 apiece.

The placement originally priced on Thursday morning as a C$19.35 million offering of 21.5 million subscription receipts. It was increased to its current size later in the day.

Each subscription receipt is exchangeable for one unit of one share and one half-share warrant. Each whole warrant will be exercisable at C$1.20 for two years.

The subscription receipts will be exchanged upon settlement of the company's planned acquisition of Elkedra Diamonds NL.

If the acquisition is not settled within 110 days of closing of the placement, 75% of the proceeds will be refunded to subscribers and the corresponding subscription receipts will be cancelled. The remaining 25% of the subscription receipts will then be exchanged.

Canaccord Capital Corp. will lead a syndicate of underwriters that also includes National Bank Financial Inc., Westwind Partners Inc. and Wellington West Capital Markets Inc.

The placement is expected to settle on Aug. 15.

Vaaldiam is a Toronto-based mining company.

It plans to use the proceeds to advance its projects, including projects from the Elkedra acquisition.

The company's shares dropped C$0.08, or 8%, to finish Thursday at C$0.92 (Toronto: VAA).

Alchemica pockets A$15.2 million

Over in Australia, Alchemica settled an oversubscribed private placement of shares for A$15.2 million.

The company sold 19 million shares at A$0.80 each.

U.S. institutions bought 12.5 million of the shares, and existing Australian institutional shareholders about 6.5 million.

ABN Amro Morgans and Blueprint Life Sciences Group, LLC were the agents.

Alchemia is a biopharmaceutical company based in Brisbane, Australia.

The proceeds will be used for development of the company's HyCAMP treatment for colorectal cancer and its HyACT cancer drug delivery platform.

Peter Smith, Alchemica's chief executive officer, expressed enthusiasm about the deal in a company news release.

"We are delighted to welcome new strategic investors into the company. With fondaparinux (synthetic heparin) on track to generate near-term revenue, this financing enables accelerated clinical and commercial development for the balance of Alchemia's programs," Smith said in the release.

"We have a number of opportunities to drive significant increases in shareholder value and these additional resources will greatly facilitate that process. We are delighted that we received very strong support for this placement from top-tier investors. Over 70% of our shares are now owned by Australian and US institutional investors," he added.

The company's stock closed unchanged at A$8.95 on Thursday (Australia: ACL).

Metals Exploration wraps £6.3 million PIPE

London-based Metals Exploration plc closed a private placement for £6.305 million.

The mining company sold a £2 million convertible note as well as 10,762,500 ordinary shares at 40p per share.

The share price is a 4% discount to the 41.75p closing mid-market price of the company's shares on July 18.

The convertible note matures on Aug. 1, 2011 and bears interest at 9% per year, payable quarterly.

It will be convertible at 52p per share.

Proceeds will be used for the company's Runruno project, for potential future Pacific Rim projects and for working capital.

"This fundraising gives the company the flexibility it needs to pursue its corporate objectives, and builds on the steady improvement in the share price so far this year," chief executive officer Jonathan Beardsworth said in a news release. "We are grateful for the support of existing shareholders, and pleased to welcome important new investors."

The company's shares ended Thursday unchanged at 41p (London: MTL).

Pure Vanilla gets $10 million equity line

In U.S. news, Pure Vanilla eXchange, Inc. entered into a $10 million private equity credit agreement with Brittany Capital Management Ltd, according to a form 8-K that Pure Vanilla filed with the Securities and Exchange Commission.

Each draw under the two-year agreement is structured as a put option.

The minimum put amount is $25,000, and the maximum is the lesser of $250,000 and 200% of the weighted average volume for the 20 trading days before the date of the put notice.

Half of the shares in each draw will be pried at 93% of the average closing bid price over the three trading days beginning two days after the put notice.

The other half of the shares will be priced at 93% of the average of the three lowest closing bid prices during the 10 trading days beginning the day after the put notice.

At the market price of the stock on the settlement date, July 11, the company would be required to issue about 38,461,538 shares to draw down the entire $10 million. Pure Vanilla has agreed to file a registration statement for that number of shares within 90 days of the settlement date.

Based in New York, Pure Vanilla provides an anonymous online payment system. Its stock gained 0.9 cents, or 6.92%, to end Thursday at $0.139 (OTCBB: PVNX).

Procera raises $8 million

Also in the internet technology sector, Procera Networks, Inc. completed a private placement of stock for $7,999,500.

The company sold 3,999,750 shares of restricted common stock to several private and institutional investors for $2.00 per share.

Chadbourn Securities, Inc. acted as agent.

Based in Los Gatos, Calif., Procera provides solutions for network traffic identification and management. Proceeds will be used for sales of the company's PacketLogic line of products.

"Through this funding, we have substantially strengthened our balance sheet and are well positioned to aggressively address the global market for PacketLogic," Doug Glader, president and chief executive officer of Procera, said in a news release.

The stock finished Thursday down 2 cents, or 0.65%, at $3.08 (OTCBB: PRNW).

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