Taylor Capital plans two deals; Cline lifts share placement; First Merchants seeks $24 million

By Stephanie N. Rotondo

Portland, Ore., March 30 - Resource and financial companies took to the PIPE market Tuesday and several double-digit transactions were announced.

Taylor Capital Group Inc. announced its intent to raise $60 million via to private placements. The company will sell a new series of convertible preferred stock, as well as subordinated notes with warrants, with each portion bringing in $30 million.

Elsewhere, Cline Mining Corp. announced a private placement of common stock. A few hours after announcing the deal, the financing was lifted to C$34.78 million.

First Merchants Corp. is planning a registered direct offering of equity, the company said in a regulatory filing. The holding company hopes to raise more than $24 million.

Among completed transactions, Trelawney Mining and Exploration Inc. said it pocketed nearly C$15 million from an oversubscribed private placement of equity. Cortex Business Solutions Inc. also settled its common share placement, raising C$7 million.

And, Nextraction Energy Inc. took in C$4.24 million from an oversubscribed private placement of units.

Taylor Capital plans deals

Taylor Capital Group intends to raise $60 million via two private placements, according to a press release.

The Rosemont, Ill.-based company hopes to take in $30 million from a placement of new convertible preferred stock and another $30 million from the private sale of subordinated notes with detachable warrants.

The terms of the deal are not yet finalized. The company did not return calls seeking further comment on Tuesday.

Proceeds will be used "as an ongoing source of strength for Cole Taylor Bank, to better align its capital position to its peers and to support the company's and the bank's future growth plans," the release said.

Additionally, Taylor Capital intends to launch a public offering of 1.2 million common shares. The offering is being conducted in hopes of inducing holders of its existing series A preferred stock to convert their holdings.

Taylor Capital's stock (Nasdaq: TAYC) gained 6 cents, or 0.48%, to $12.55. Market capitalization is $139 million.

Taylor Capital Group is the holding company for Cole Taylor Bank, which is primarily engaged in commercial banking.

Cline lifts share placement

Cline Mining is seeking C$34.78 million from a private placement of common shares, the company said in a press release.

The deal originally priced at C$25.16 million on Tuesday and was upsized a few hours later.

There is a C$10.36 million greenshoe.

According to the terms of the bought deal, the company will sell 23.5 million of the shares at C$1.48 each.

Proceeds will be used for the continued development of the New Elk Coal Mine and for working capital. Settlement is expected by April 16.

Calls seeking comment were not returned Tuesday.

Cline's shares (Toronto: CMK) increased 9 cents, or 5.42%, to C$1.75. Market capitalization is C$165 million.

Cline Mining is a Sudbury, Ont.-based mine development company.

First Merchants plans direct placement

First Merchants will conduct a $24.15 million registered direct offering of equity, according to a regulatory filing.

The company will sell 4.2 million common shares at $5.75 per share.

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

First Merchants' stock (Nasdaq: FRME) moved up by 4 cents, or 0.63%, to $6.42. Market capitalization is $135 million.

First Merchants is a Muncie, Ind.-based financial services holding company.

Trelawney wraps stock sale

Trelawney Mining and Exploration settled its previously announced bought-deal private placement of equity, taking in C$14.95 million.

The deal was oversubscribed.

Trelawney first announced the financing on March 12. On March 18, the C$13 million deal's C$1.2 million greenshoe was lifted to C$1.95 million.

The company issued approximately 14.23 million common shares at C$1.05 each. Approximately 1.86 million of those shares were part of the fully exercised greenshoe.

Proceeds will be used for exploration and development of the Chester Township property and for working capital.

Trelawney's equity (TSX Venture: TRR) jumped 14 cents, or 13.08%, to C$1.21. Market capitalization is C$47.6 million.

Trelawney Mining and Exploration is a Toronto-based gold exploration company.

Cortex seals C$7 million

Cortex Business Solutions, a Calgary, Alta.-based provider of e-business products and services, wrapped a C$7 million private placement of stock.

The deal originally priced at C$6 million with a C$1 million greenshoe on March 10.

Sprott Asset Management LP was one of the participating investors.

Cortex sold 14 million shares total in the financing, 2 million of which were part of the fully exercised greenshoe. Each share sold at C$0.50 on a bought-deal basis.

"It's good to get it done," said Ryan Lailey, vice president of business development and corporate strategy. "We're pretty happy with it."

Lailey said Cortex intends to use the funds to "accelerate our growth," which includes "opening up operations in the U.S.," as well as "expanding industry coverage to construction, utilities and mining."

Investors had not expressed any concerns with dilution, Lailey added.

"[Cortex's stock] has gone up 300% since the beginning of the year so our investors are pretty happy with us," he said. Additionally, the funds will allow for "good capitalization and cash on hand."

Cortex's equity (TSX Venture: CBX) fell 3 cents, or 5.56%, to C$0.51. Market capitalization is C$60 million.

Nextraction deal oversubscribed

Nextraction Energy pocketed C$4.24 million from a private placement of units, the company announced.

The non-brokered financing priced at C$3 million on March 17 and was increased to C$4.21 million on March 26.

All told, the company issued 4.24 million of the units at C$1.00 each. The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$1.25 for one year.

"We're very pleased that the level of investor interest in our company allowed us to close this private placement in such a strong manner," said Mark Dolar, president, in a press release. "We are excited to move forward on the completion of the Noble 6-24, with plans to generate gas sales in the near term."

Nextraction's stock (TSX Venture: NE) improved half a cent, or 4.35%, to C$1.20. Market capitalization is C$9.13 million.

Nextraction Energy is a Vancouver, B.C.-based junior oil and gas company.

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