Freegold's C$10 million line to repay bridge loan; Oasis, ATS settle deals; Grand Power to sell convertibles

By Kenneth Lim

Boston, Jan. 14 - Freegold Ventures Ltd. plans to take a C$10 million line of credit to help repay bridge loans and provide working capital.

Oasis Online Technologies Corp. made further progress on its planned $1.2 million stock offering with the settlement of a $200,000 tranche.

ATS Automation Tooling Systems Inc. raised C$50 million through a private stock offering that saw significant participation from a major shareholder.

Grand Power Logistics Group Inc. plans to raise C$4 million to C$4.5 million through a sale of convertible debentures.

Freegold takes credit line

Freegold Ventures negotiated a C$10 million three-year secured line of credit with a European lender.

Amounts drawn down will bear interest at three-month Libor plus 200 basis points.

The lender will also receive 750,000 warrants if the company draws down at least C$7.5 million. Each two-year warrant will be exercisable at C$0.30.

Freegold (TSX: ITF) has a market capitalization of C$17.3 million. Its common stock dropped 12.9% or C$0.04 to close at C$0.27 on Wednesday.

Proceeds from the transaction will be used to repay $4 million in bridge loans and provide additional working capital. Maturity of the bridge loans was extended to Feb. 10, 2009 to accommodate the timing of the new financing.

Freegold is an exploration company based in Vancouver, B.C.

"We are very pleased to have been able to obtain terms for a facility of this size and term during these difficult market conditions," Freegold president and chief executive Steve Manz said in a statement.

"We have always been sensitive to the issue of equity dilution. Our last equity financing closed in June 2007, and should we be successful in closing this new line of credit, we would continue to avoid the issuance of a large numbers of shares at low share prices to provide the company with additional working capital.

"Closing of this facility would allow full repayment of the two bridge loans on a more favorable and longer term basis, and the company would remain well positioned to continue to add value to its advanced Alaska and Idaho projects. Following completion of the financing, work over the coming months would involve low cost analysis and modeling of the extensive programs undertaken this year on our four projects, after which we would evaluate the best manner to move the projects forward and add to our overall gold resource base."

Oasis deal progresses

Oasis Online Technologies raised $200,000 in the second tranche of its planned $1.2 million private stock placement.

The company sold about 1.33 million shares of its common stock at $0.15 apiece in the deal. The investor will pay the consideration in 12 monthly installments starting Feb. 1, 2009. Oasis common stock (OTCBB: OOLN) closed unchanged at $0.04 on Wednesday. The company has a market capitalization of $548,000.

Proceeds will be used for general working capital purposes.

The company sold $252,000 of stock in the initial tranche at an average price of $0.143 per share. The company said it is negotiating additional subscriptions and expects to complete the financing in the near future.

Mesa, Ariz.-based Oasis is an acquirer and developer of technologies and products used in secure mobile storage of information.

"This additional funding will allow us to commence operations in one of our planned subsidiaries and begin securing customers," Oasis chief financial officer John Venette said in a statement.

"The company plans to market and distribute the Card of America and AllowCard suite of prepaid debit cards pursuant to a previously announced agreement with SVC Cards, Inc. The company is also currently developing unique smart-card applications based on the PocketServer software platform."

ATS completes offering

ATS Automation settled a C$50 million private stock placement.

The company sold 10 million common shares at C$5 apiece on a bought-deal basis. ATS common stock (TSX: ATA) slipped 4.51% or C$0.20 to close at C$4.23 on Wednesday.

Proceeds will be used to pursue strategic opportunities, and for working capital and general corporate purposes.

Mason Capital Management, LLC, ATS's largest shareholder, bought 2 million of the shares offered and now holds a stake of about 12%.

Based in Cambridge, Ont., ATS provides custom designed, built and installed manufacturing solutions to customers in industries such as healthcare, electronics, automotive and consumer products.

Grand Power to sell convertibles

Grand Power Logistics plans to raise between C$4 million and C$4.5 million through a non-brokered placement of two-year 10% convertible debentures.

The debentures will have an initial conversion price of C$0.20 per share.

Grand Power common stock (TSX: GPW) dropped 16.67% or C$0.025 on Wednesday to close at C$0.125. The company has a market capitalization of C$4.7 million.

Proceeds will be used for working capital and for covering the payout of outstanding convertible debentures that will mature on Feb. 26 and March 13.

Based in Calgary, Alta., Grand Power operates principally through its Hong Kong-based subsidiary, Grand Power Express International Ltd., and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value-added services.

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