Westaim seeks acquisition funds; LGC Skyrota to sell units; Enseco Energy aims for C$5 million

By Stephanie N. Rotondo

Portland, Ore., Jan. 25 - Canadian issuers made up the bulk of PIPE deals on Monday.

Westaim Corp. brought a C$275 million private financing to market. The company will sell subscription receipts to raise the funds, which will then be used to finance a planned acquisition.

LGC Skyrota Wind Energy Corp. meantime announced a C$5 million placement of units. Enseco Energy Services Corp. is also seeking that amount from a private placement of units.

And, Condor Resources Inc. is seeking exploration funding of up to C$3 million. As such, the company launched a private placement of units.

Westaim seeks acquisition funds

Westaim, a Calgary, Alta.-based investment company, announced a C$275 million private placement of subscription receipts.

The company intends to sell 550 million of the receipts at C$0.50 each. The receipts are convertible into one common share.

Alberta Investment Management Corp. will purchase C$148 of the subscriptions. GMP Securities LP will underwrite C$50 million of the deal and will offer the remaining C$59.5 million on a best-efforts basis.

The proceeds will be used to fund the C$263 million acquisition of Jevco Insurance Co. from Kingsway Financial Services Inc.

"This acquisition will complete the transformation of Westaim into a company with a new focus on the Canadian insurance business," said Cameron MacDonald, president of Westaim, in a press release.

"Jevco and its management team are very pleased to have entered into this strong partnership with Westaim," added Serge Lavoie, chief executive officer of Jevco. "This transaction is designed to bring financial strength and stability to Jevco, and to bring comfort to our business partners. We are excited with the significant growth opportunities ahead, and look forward to our future with Westaim."

Westaim's equity (Toronto: WED) gained 8½ cents, or 19.54%, to C$0.52. Market capitalization is C$49 million.

LGC to issue units

LGC Skyrota Wind Energy arranged a C$5 million private placement of units, according to a press release.

The Vancouver, B.C.-based company will issue approximately 58.82 million units at C$0.085 per unit in the non-brokered financing. Each unit will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.125 for two years.

Proceeds will be used for acquisitions, working capital and general corporate purposes.

Emails to the company's CEO, Thomas Braun, were not immediately returned Monday. According to a source at LGC, Braun is traveling in Europe and meeting with potential investors there.

LGC's stock (TSX Venture: LGS) ended steady at C$0.09. Market capitalization is C$5.53 million.

Enseco aims for C$5 million

Enseco Energy is also seeking C$5 million from a private placement of equity units.

The deal includes a C$3 million greenshoe.

Enseco will sell 25 million units at C$0.20 each. The units will consist of one common share and one-half-share warrant. Whole warrants are exercisable at C$0.25 for one year.

Proceeds will be used for equipment and business acquisitions, as well as for general corporate purposes.

Calls seeking comment were not returned Monday.

Enseco's shares (TSX Venture: ENS) improved by 2 cents, or 8.7%, to C$0.25. Market capitalization is C$11.4 million.

Enseco Energy Services is a Calgary, Alta.-based oil and gas company.

Condor to raise C$3 million

Condor Resources negotiated a private placement of units for proceeds of up to C$3 million.

The company will sell 10 million units at C$0.30 each. The units will hold one common share and one half-share warrant. Whole warrants are exercisable at C$0.40 for one year.

Proceeds will be used for exploration activities at Condor's Pucamayo property in Peru, for further exploration of the Condor de Oro property and for working capital.

Condor's stock (TSX Venture: CN) fell 1½ cents, or 4.11%, to C$0.35. Market capitalization is C$11 million.

Condor Resources is a Vancouver, B.C.-based resource exploration company.

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