Finders Resources plans equity sale; Antigenics to raise $10 million; Powertech secures loans

By Stephanie N. Rotondo

Portland, Ore., Aug. 4 - Tuesday was a day of big deals in the private placement market, with most coming in the double digits.

Australian company Finders Resources Ltd. announced a A$20 million equity sale. The company said it originally planned to raise A$15 million, but demand was greater than expected.

Meanwhile, Antigenics Inc. announced yet another $10 million financing. The company previously closed on a $10 million transaction on July 30.

Powertech Uranium Corp. said it arranged a C$13.8 million loan agreement with a single investor. The loan is convertible, in part, into common stock.

Among settled arrangements, Kansas City Southern earned more than $22 million from a private placement of equity. The company also raised money through a public offering.

Finders plans equity sale

Finders Resources plans to conduct a A$20 million private placement of equity, according to a press release.

The Ultimo, Australia-based company will sell ordinary shares in two tranches, with the first tranche totaling 16.6 million shares. Each share will sell at A$0.33 per share.

"With very strong demand from institutional and private investors, the original target of A$15 million has been exceeded, and directors have agreed to accept subscriptions totaling A$20 million," the company said in the release. "New institutional subscribers to the placement include Taurus Funds Management Pty Ltd. and Straits Resources Ltd., plus strong additional commitments from existing shareholders, including Acorn Capital and RCF."

Proceeds will be used, in part, to repay debt.

"We are delighted with the strong support for this fundraising, which reflects the high quality of our Wetar copper project, and the ability of our company to operate successfully in Indonesia," remarked Russell Fountain, Finders' chairman. "We welcome Taurus and Straits as significant new shareholders and the continued support from our existing shareholders. The retirement of our existing debt facility will simplify the company's balance sheet going forward, and the additional funding subscribed will enable us to continue on a fast track for development of the full scale Wetar Copper Project."

Finders' shares (Australia: FND) closed at A$0.40.

Finders Resources is a metal mining and exploration company.

Antigenics to raise $10 million again

Antigenics will raise $10 million via a private placement of stock and warrants, the company announced.

The company will issue approximately 4.4 million common shares at $2.28 per share. Investors will also receive six-month warrants equal to approximately 2.2 million additional shares, at an exercise price of $2.31. Warrants for another 2 million of shares will also be issued, at a strike price of $2.50.

The funds are in addition to the $10 million raised on July 30.

Proceeds from the financing will be used primarily for funding key commercial and regulatory efforts.

"Given Antigenics' current level of operations, the company anticipates that the proceeds from recent financing activities in addition to existing resources could be sufficient to fund operations into 2011," the company said in a statement.

Settlement is expected by Aug. 4.

Anitgenics' equity (Nasdaq: AGEN) fell 20 cents, or 7.75%, to $2.38. Market capitalization is $176 million.

Antigenics is a New York-based biotechnology company with a focus on cancers and infectious diseases.

Powertech secures loans

Powertech Uranium orchestrated a C$13.8 million convertible loan agreement with Societe Belge De Combustibles Nucleaires Synatom SA, the company announced.

Under the terms of the 18-month loan, the deal will come in four equal tranches of C$3.45 million. The first and second tranches will bear interest at 7%, while the third and fourth carry a 9% rate. The second tranche is convertible into common shares at C$0.50 per share.

Also, the investor agreed to a 9% non-convertible C$3.45 million bridge loan. The debt matures Nov. 4, 2009.

Powertech's shares (Toronto: PWE) dipped a penny, or 2.56%, to C$0.38. Market capitalization is C$21.1 million

Kansas City gets $22.51 million

Kansas City Southern completed a $22.51 million placement of common stock on July 31, according to a regulatory filing.

The company sold approximately 1.125 million shares at $20.00 per share.

The raising was part of a $75 million financing approved by the company's board of directors in March, Bill Galligan, vice president of investor relations, told Prospect News. The company raised the bulk of the funds through an ATM equity offering.

Galligan said that about 3.2 million shares were issued under that agreement, at an average price per share of $16.38 per share. Total proceeds came to $51.3 million.

"I am pleased that we were able to issue $75 million of our common stock at prevailing market prices without affecting the market price of our stock and in conditions where many established companies are struggling to raise capital," commented Michael R. Haverty, KCS's chairman and CEO, in a release announcing the latter financing. "The additional capital, along with our previously announced reduced level of capital spending during the second half of 2009, should improve our liquidity. Additionally, we don't have any major debt maturities due until April 2011."

"WE have been involved in a large rail construction project in Texas," Galligan added. He said the project has cost about $177 million thus far and was funded through "internally generated" cash flows.

"We just wanted to have better liquidity," Galligan said of the financings. "Especially given this economy. We wanted to protect ourselves from any shortfalls."

Kansas City's stock (NYSE: KSU) improved by 80 cents, or 3.71%, to $22.37. Market capitalization is $2.11 billion.

Kansas City Southern is a Kansas City, Mo.-based transportation holding company with railroad investments in the United States, Mexico and Panama.

Alabama Power rakes in $135 million

Among other completed deals, Alabama Power Co. took in $135 million from a private placement of equity, the company said in a filing with the Securities and Exchange Commission.

Approximately 3.375 million common shares were issued at $40.00 per share. The Southern Co. was the sole investor.

Alabama's stock (NYSE: ALM) gained 10 cents, or 0.39%, to $25.60.

Alabama Power is a Birmingham, Ala.-based electricity provider.

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