JKX Oil & Gas gets £37.78 million; SulphCo brings unit offering; Meta Financial to place stock

By Stephanie N. Rotondo

Portland, Ore., Jan. 26 - It was a busy day in the PIPE market Tuesday, with many new deals - especially in the mineral resource arena - coming to market.

JKX Oil & Gas plc said it had raised £37.78 million from a private placement of stock. Proceeds will be used for development of the company's properties.

Meanwhile, SulphCo Inc. brought a $6 million registered direct offering of units. A company spokesperson said the new funding would put the company in "a reasonably good position" through 2011.

Meta Financial Group Inc. is looking to strengthen its balance sheet with a $5.65 million private placement of equity. There is only one investor.

Also, LGC Skyrota Wind Energy Corp.'s top executive commented on the financing his company announced Monday. Among other things, he said that the proceeds would help to grow the company.

Aldridge Minerals Inc. announced it had completed a private placement of units, taking in more than C$5 million.

JKX settles stock offering

JKX Oil & Gas, a London-based oil and gas production company, took in £37.78 million from a private placement of ordinary shares, the company said in a press release.

JKX sold approximately 14.25 million of the shares at 265p per share, a 4.7% discount to the closing middle market price of 278.2p on Jan. 25.

Proceeds will be used for development work at existing 2P reserves, to appraise contingent resources in the Rudenkovskoye field and to continue a well workover program in Russia.

JKX's equity (London: JKX) closed at 277.5p. Market capitalization is £437 million.

SulphCo brings registered deal

SulphCo announced a $6 million registered direct offering of units.

The Houston-based company will issue 11.8 million of the units at $0.51 each. The units will consist of one common share and two warrants. Each warrant can be exercised for half of a common share at $0.70 for two years and $1.00 for five years, respectively.

SulphCo will use the funds to "continue to commercialize the process of treating sulfur compounds in various product streams," according to Jeffrey R. Freedman, vice president of corporate development.

Freedman added that with a cash burn of roughly $600,000 a month, the financing, along with cash on hand and projected 2010 revenues, should provide funding through 2011.

"We should be in a reasonably good position through next year," he said.

Settlement is expected Jan. 29.

SulphCo's shares (NYSE: SUF) fell 14 cents, or 22.65%, to $0.4641. Market capitalization is $42.24 million.

SulphCo is a company with a patented ultrasound process designed to desulfurize crude oil products and crude oil.

Meta seeks $5.65 million

Meta Financial Group intends to raise $5.65 million from a private placement of equity.

The deal priced Jan. 22, according to a regulatory filing.

Under the terms of the deal, Meta will sell 265,000 common shares at $21.33 per share, which is "at prevailing market price," J. Tyler Haahr, president and chief executive officer, told Prospect News.

Cash America International Inc. is the investor.

"Capital is king in today's environment," Haahr said, explaining the company's rationale behind the financing. He noted that Meta did not participate in the U.S. government's TARP program and thus the financing was "another means to raise capital to enhance our growth."

"It was mutually agreed upon [with the investor] and I believe both parties are pleased," he added.

Haahr said the proceeds would be used for general corporate purposes. Settlement is expected by Jan. 26.

Meta Financial's stock (Nasdaq: CASH) dropped 83 cents, or 3.86%, to $20.65. Market capitalization is $56.6 million.

Meta Financial Group is a Storm Lake, Iowa-based financial services provider.

LGC CEO: Funding for growth

Thomas Braun, CEO of Vancouver, B.C.-based LGC Skyrota Wind Energy, commented on the company's previously reported C$5 million private placement of units.

Braun, who is currently traveling in Europe to meet with potential investors, said that thus far, the "response has been positive." He intends to continue the roadshow in Canada and possibly the United States as well.

"We are looking at prospects but have not gotten to the stage where we have signed a binding agreement," he said in an email to Prospect News.

According to the terms of the deal announced Monday, LGC will sell 58.82 million units at C$0.085 per unit. Each unit will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.125 for two years.

"As far as the funding goes, we would have liked to do it at a higher price obviously, but we cannot delay development of our company because we don't like our trading price," he said of the deal's terms. "This is where we are trading at and therefore this is where we have to raise money at. At the end of this process we are confident that the market will value our shares more as a result of expansion, and we should also have greater liquidity in our stock.

"This funding will improve our debt to equity ratio, our financial security and finance a transformative acquisition in the wind energy sector which is one of the brightest spots in an otherwise moribund economy," he added. "It will lead to growth in our revenue and improve the distribution of our shares in the market."

Proceeds will be used for potential acquisitions, general corporate and working capital purposes. Braun said he hoped to complete the funding by June 30.

LGC's shares (TSX Venture: LGS) slipped 1½ cents, or 16.67%, to C$0.075. Market capitalization is C$4.27 million.

Aldridge wraps unit sale

Aldridge Minerals settled a C$5.01 million private placement of equity units, according to a press release.

The non-brokered deal originally priced at C$5 million on Dec. 11 and C$3.78 million was raised in the first tranche on Jan. 18.

All told, the company sold 5.01 million of the units at C$1.00 each. The units include one common share and one warrant. Warrants are exercisable at C$1.50 for two years.

Calls seeking comment were not returned Tuesday.

Aldridge's equity (TSX Venture: AGM) ended unchanged at C$1.25. Market capitalization is C$28.2 million.

Aldridge Minerals is a Vancouver, B.C.-based gold and base metals exploration company.

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