Private placement volume lightens; Motient gets $126.8 million in private placement

By Sheri Kasprzak

Atlanta, Oct. 29 - Even as volume took a downward turn Friday, Motient Corp. announced late in the day one of the largest private placement offerings of the year.

Motient's $131.58 million private placement ($126.8 million net of commission) was the exception to the rule Friday in a market that suffered from lower volume due to, some sources said, a cocktail of earnings season, lower oil prices and bad market conditions.

"I do think companies are busy getting their earnings out," said one source. "It's entirely possible that once earnings season is over, we could see volume improve.

"There's also just the market in general. You're seeing a lot of key markets in a slump, like oil and technology."

Even Canadian volume, which had seen a trend of steady deal issuance, took a hit Friday.

"Fridays are typically lighter," said one Canadian sell-side source. "Oil prices would have an effect as well, though. Also, at some point, the trend of lots of deals has to end."

On Friday, crude oil futures dipped to $52.59 a barrel, but did bounce back to about $53 per barrel by market's close.

The Motient deal is incorporated 15,353,606 shares at $8.57 per share.

Warrants were also issued for 3,838,401 shares at $8.57 per share for five years. The warrants will vest only if Motient does not meet deadlines for registering the shares.

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

Motient, a Lincolnshire, Ill.-based wireless data provider, must use the funds from the financing to make an investment in Mobile Satellite Ventures LP. On Friday, Motient entered into an agreement with MSV to buy limited partnership units in that company.

On Friday, Motient's stock closed up $0.90 at $10.95.

Chamaelo plans C$25 million placement

Chamaelo Energy Inc. said Friday it plans to raise C$25 million in a private placement.

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

Orion Securities Inc. and GMP Securities Ltd. will serve as co-lead placement agents in the deal. Closing is expected on 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.

The company's stock closed unchanged at C$5.90 Friday.

Mosaid gets C$14 million

Mosaid Technologies Inc. said Friday it received C$14 million in a private placement, the company said Friday.

The company sold 800,000 shares at C$17.50 each to an Ontario pension fund.

Harris Partners Ltd. acted as financial advisor in the deal.

Mosaid is an Ottawa, Ont.-based intellectual property development and licensing company. It plans to use the proceeds from the financing for general corporate purposes.

Mosaid's stock closed down C$0.80 at C$19.70 on Friday.

Electric Aquagenics' equity agreement

On Friday, Electric Aquagenics Unlimited Inc. said it received $10 million in a standby equity distribution agreement from Cornell Capital Partners LP.

Cornell will provide the funding to Electric Aquagenics over 24 months, to be drawn down upon at the company's discretion by the sale of stock to Cornell.

"As a cash investor and shareholder in EAU, I now know that we have the capital to execute our business plan," said Electric Aquagenics chief executive officer Gaylord Karren in a statement. "We have now begun to see the fruits of our labors by achieving revenues in multiple market channels. We are in a great position for our 2005 roll out. This financing facility gives management the option to draw down or leverage into additional capital sources. It's a great position for us."

Electric Aquagenics, based in Lindon, Utah, produces water-based products for cleaning, disinfecting, hydrating and moisturizing. Its stock closed up $0.25 at $4.25 Friday.

Wallbridge raises C$5 million

Wallbridge Mining Co. Ltd. said early Friday it has raised C$5 million in a private placement.

The deal consists of 5,833,334 flow-through shares at C$0.60 per share and 2.5 million non-flow-through units of one common share and one half-share purchase warrant at C$0.60.

The whole warrants, good for two years, allow for the purchase of an additional share at C$0.95.

A syndicate of agents led by GMP Securities placed the offering.

Wallbridge, a Toronto-based nickel, copper and platinum exploration company, plans to use the funds for drilling on the Broken Hammer zone of its Wisner property and to finish its 2005 exploration programs in Ontario and Nova Scotia.

Wallbridge's stock closed down C$0.03 at C$0.50 Friday.

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