U.S. private placement activity light; $131.6 million Motient deal priced well, sources say

By Sheri Kasprzak

Atlanta, Nov. 1 - In a relatively slow day for U.S. private placements, market participants chatted about the $131.58 million deal Motient Corp. wrapped up late Friday.

The deal, according to some sources, priced well.

"It looked pretty good to me," said one sell-sider. "It might have been priced at a slight discount to market, but I think that's because it's in an unsteady market. But, yeah, I think it looks pretty good."

"The size to me is what is surprising," said another sell-side source. "I can tell you, I personally haven't seen a deal this big all year. As for how it priced, I think it priced pretty well."

On Monday, the company's stock soared $0.90 to close at $10.95. The placement came to market at $8.57.

Motient's chief operating officer Christopher Downie did not return phone calls Monday seeking comment on the deal.

The company announced after the close Friday that it had raised $126.8 million, net of $5,182,620 in commissions, in a deal comprised of 15,353,606 shares sold at $8.57. Warrants were also issued for 3,838,401 shares at $8.57 per share for five years although the warrants only vest if Motient does not meet deadlines for registering the stock.

The offering was sold to 23 investors, 17 of which are current stockholders. If the company's stock drops below $8.50 per share for five consecutive trading days, the investors may void their commitments.

Motient is a Lincolnshire, Ill.-based wireless data provider, and will use the financing to make an investment in Mobile Satellite Ventures LP.

Calloway offers C$40 million deal

Calloway Real Estate Investment Trust said Monday it plans to offer C$40 million in a private placement.

The deal, in which TD Securities Inc. will act as placement agent, includes units priced at C$17.25 per unit. Additional details on the deal were not available at press time Monday evening.

Based in Calgary, Alta., Calloway is a real estate acquisition trust. The company plans to use the money raised in the financing for the acquisition of 14 shopping centers developed by FirstPro Shopping Centres and owned by FirstPro and Wal-Mart.

Calloway's stock closed down C$0.03 at C$17.70 Monday.

Chamaelo CFO pleased with pricing

Chamaelo Energy Inc.'s C$25 million private placement announced Friday was priced within line of the market, according to the company's vice president and chief financial officer.

In an interview Monday, Greg Fisher said he feels the deal priced well, but said a four-month hold is a concern.

"The deal does come with a four-month hold, which means it might be at a little bit of a discount to the market," Fisher said. "That's okay given the volatile market conditions."

On Friday, the company said it will issue 4.762 million shares at C$5.25 per share with Orion Securities and GMP Securities Ltd. acting as co-lead placement agents.

The company will issue 4.762 million shares at C$5.25 per share.

The deal is expected to close Nov. 18.

Chamaelo is a Calgary, Alta.-based crude oil and natural gas exploration, development and production company. It plans to use the proceeds from the offering for acquisitions and for the acquisition, exploration and development of its petroleum and natural gas reserves.

On Monday, Chamaelo's stock closed unchanged at C$5.90.

Lexington raises $2.5 million

Lexington Resources Inc. said it had closed a $2.5 million private placement.

The deal consists of 1,700,686 units of one share and one purchase warrant for $1.47. The warrants in the deal allow for an additional share at $1.68 for six years.

Based in Las Vegas, Lexington is an oil and natural gas exploration and development company. The company plans to use the proceeds from the deal to increase drilling and land acquisition, and to expedite the development of its domestic gas projects.

Lexington's stock closed down $0.55 at $1.85.

Access Integrated gets $1.1 million

Access Integrated Technologies Inc. has raised $1.1 million in a private placement, the company said Monday.

The company sold 282,776 shares of class A common stock to Renaissance Capital Ltd. at $3.89 per share.

"The completion of this financing will not only provide additional liquidity for our company, but shows solid commitment on the part of RENN Capital Group, a highly respected small cap fund, to AccessIT's vision," said chief executive officer Bud Mayo in a statement.

Access Integrated is a Morristown, N.J.-based internet data center operator. The company plans to use the proceeds from the deal for capital investments and working capital.

Canadian private placements

Ashton Mining Corp. said late Friday it plans to offer up a C$5.25 million private placement.

The offering includes five million units of one share and one half-share purchase warrant at C$1.05 per unit. The offering will be issued to a single European institutional investor.

The whole warrants allow for the purchase of an additional share at C$1.30 for 30 months. The non-brokered deal is expected to close Nov. 15.

Based in Vancouver, B.C., Ashton is a diamond exploration company. It plans to use the proceeds from the financing for the company's 2005 exploration programs, for working capital and for general corporate purposes.

Ashton's stock closed unchanged at C$0.94 Friday, its last trade.

Acadian Gold's C$1.2 million offering

Acadian Gold Corp. announced its plans to enter the private placement market with a C$1.2 million offering.

The deal consists C$600,000 in units of one common share and a half-share purchase warrant at C$0.18 per unit. The whole warrants in the equity units are good for 18 months and allow for the purchase of an additional share at C$0.27.

The deal also includes C$600,000 in flow-through shares at C$0.25 per share.

The offering is scheduled to close Nov. 30.

Acadian is a Halifax, N.S.-based gold exploration, development and acquisition company. It plans to use the proceeds from the flow-through financing to develop its projects in Nova Scotia and New Brunswick. The funds from the equity units will be used for general corporate purposes.

On Monday, Acadian's stock closed down C$0.02 at C$0.18.

MBA plans C$1 million deal

MBA Gold Corp. is bringing a C$1 million private placement, the company said late Friday.

The deal consists of five million units of one share and one purchase warrant at C$0.20. About 75% of the units will be flow-through units.

The warrants are exercisable for one year and allow for the purchase of an additional share at C$0.25.

The flow-through proceeds will fund MBA's drilling expenses on its Dover and Gautreau oil and gas prospects in 2005. The rest of the funds will be used for mineral exploration and working capital.

MBA Gold is a Vancouver, B.C.-based petroleum and natural gas company and also has gold-exploration concerns in the western United States.

MBA stock closed unchanged Friday, its last trade, at C$0.25.

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