VinaLand negotiates $200.1 million stock offering; Storm Cat Energy prices $50 million notes deal

By Sheri Kasprzak

New York, Jan. 19 - As stocks ended the week barely moved, several large offerings topped private placement activity Friday.

VinaLand Ltd. grabbed headlines with a $200.1 million offering of its stock.

The deal sent the company's stock on the Pink Sheets down 10 cents, or 6.25%, to end the session at $1.50 (Pink Sheets: VNLDF). Across the pond, however, the stock gained 1.01% to close at 1.50p (London: VNL).

Volume on the London Stock Exchange also took off with 2,537,606 shares of VinaLand traded compared with the average of zero shares.

The company intends to sell up to 145 million shares at $1.38 each in the offering, which is set to close March 7.

VinaLand, based in George Town, Grand Cayman, develops and manages real estate properties in Vietnam.

In the broader market, stocks ended the session mixed but market sources said the overall strength of the stock market is keeping the deals coming.

A sellsider based in New York said an occasional off day at this point won't hurt volume.

"It's really taking off," he said of volume. "Just because the [stock] market has a day like today doesn't mean things are going to start backing off now."

Asked about the recent influx of particularly large offerings, another sellsider said he feels that acquisitions may have something to do with it.

"Obviously if you're funding something as big as an acquisition with a PIPE, you're going to need a larger amount of cash," he said.

Storm Cat's offering

Elsewhere in PIPEs, Storm Cat Energy Corp. priced a $50 million offering of convertible notes to be issued in two series.

The series A portion of the deal for $19 million and the series B portion for $31 million have the same terms.

The 9.25% notes are due 2012 and are convertible at $1.17 each.

Proceeds will be used for the company's 2007 capital expenditure requirements and for the repayment of a $7.5 million mezzanine debt facility received when the company's acquired properties in the Powder River Basin in 2006.

The company's stock advanced by 4.21%, or 4 cents, to settle at $0.99 (Amex: SCU).

Denver-based Storm Cat is an oil and natural gas exploration and development company.

Uranium Star's placement

In other resources-related offerings, Uranium Star Corp. settled the final tranche of a private placement for $17.04 million.

The company sold a total of 22.885 million units at $0.50 each and 11.195 million flow-through units at $0.50 each.

The non flow-through units consist of one share and one warrant. Each warrant is exercisable at $0.75 for two years.

The flow-through units are comprised of one flow-through share and one half-share warrant. The whole warrants are exercisable at $0.75 each for two years.

Proceeds will be used for exploration on the company's Sagar property in the Labrador Trough of Quebec.

Uranium Star's stock remained unchanged at $1.40 Friday (OTCBB: URST).

Located in Toronto, Uranium Star is a uranium exploration company.

Sterling raises $8.5 million

In another resources deal, Sterling Mining Co. completed an $8,498,500 private placement of 3.695 million units.

The units of one share and one warrant were sold at $2.30 each.

Each warrant is exercisable at $4.25 for two years.

Blackmont Capital Inc. and TD Securities Inc. were the placement agents.

Proceeds will be used to rehabilitate and upgrade the company's Sunshine Mine. The rest will be used for the purchase of a tailings pond and for working capital.

The offering comes just days after Sterling settled a $6,304,252 deal comprised of 2,334,908 units at $2.70 each.

Those units include one share, one warrant exercisable at $4.25 each through Nov. 15, 2008 and one quarter-share warrant, the whole of which are exercisable at $3.75 each until the later of April 20, 2007 or 90 days after the registration statement is declared effective.

Sterling is a silver production and exploration company based in Coeur d'Alene, Idaho.

Vedron Gold to raise C$5 million

Looking to Canadian gold offerings, Vedron Gold Inc. announced plans to conduct a C$5 million offering of up to 10 million flow-through units and up to 2.5 million non flow-through units.

Both flow-through and non flow-through units are being offered at C$0.40 each.

The flow-through units consist of one flow-through share and one half-share warrant. The whole warrants are exercisable at C$0.60 each for 18 months.

The non flow-through units include one share and one warrant. The warrants are exercisable at C$0.60 each for 18 months.

Placement agent Primary Capital Inc. has a greenshoe for up to C$500,000.

Northfield Capital Corp. has already committed to purchasing the majority of the shares in the offering.

Proceeds will be used for exploration on the company's gold projects and for working capital.

Toronto-based Vedron is a gold exploration company.

Lignol raises C$5 million

In other Canadian PIPEs news, Lignol Energy Corp. wrapped a C$5 million private placement, selling 10 million units at C$0.50 each.

The units include one share and one half-share warrant. The whole warrants are exercisable at C$0.75 for two years.

Haywood Securities Inc. was the placement agent.

Proceeds will be used to complete the company's pre-commercial work plan and acquire equity ownership in energy-related projects.

The offering was closed concurrent with the company's acquisition of Lignol Innovations Corp. in a reverse takeover agreement.

Vancouver, B.C.-based Lignol builds bio-refineries to produce fuel-grade ethanol and biochemical products made from cellulosic material from Canadian forests and biomass.

Capstone to raise $45.6 million

Elsewhere, Capstone Turbine Corp. negotiated the terms of a $45.6 million registered direct placement of units.

The company plans to sell up to 40 million units of one share and one half-share warrant at $1.14 each.

The unit price is a 6.5% premium to the company's $1.07 closing stock price from Thursday.

The whole warrants are exercisable at $1.30 each for five years.

The shares will be sold under the company's shelf registration.

The offering is scheduled to close Jan. 24.

A.G. Edwards & Sons, Inc. is the placement agent.

Proceeds will be used for working capital.

The company's stock lost 5 cents, or 4.67%, to close at $1.02 (Nasdaq: CPST) Friday and lost another 2 cents in after-hours trading.

Based in Chatsworth, Calif., Capstone develops low-emissions micro-turbine systems used for energy production.

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