North American Palladium scraps deal; Nexus closes on A$30 million; Airspan raises $10 million

By Stephanie N. Rotondo

Portland, Ore., Sept. 2 - The big news in the private placement market Wednesday was North American Palladium Ltd.'s cancellation of a $50 million private placement of convertible notes.

The company's reasoning for the cancellation were that the terms "were not satisfactory." Casimir Capital LP was the agent that negotiated the terms.

Meanwhile, Nexus Energy Ltd. said it closed on its nearly A$31 million placement of equity. The oil and gas company said it was also planning a rights offering to existing shareholders, which is expected to bring in about A$12 million.

In other settled transactions, Airspan Networks Inc. said it took in $10 million from a private placement of stock. The shares were sold to Oak Investment Partners XI, LP, which became the company's majority shareholder upon closing.

Also, WaferGen Bio-Systems Inc. announced it completed its $6.26 million placement of equity. Mint Technology Corp. also settled a deal, bringing in more than C$2 million.

Elsewhere, Western Lithium Canada Corp. said it arranged a C$15.2 million private placement of units. A company spokesperson said the time was ripe for financing in the lithium sector.

North American Palladium scraps deal

North American Palladium canceled a previously announced private placement of convertible notes, claiming the terms of the deal "were not satisfactory."

The Toronto-based company had originally priced the deal Aug. 17. The intention was to raise $50 million from the sale of four-year 7% convertible notes. The deal was to be led by Casimir Capital LP.

"NAP remains financially strong with a cash position of $60 million as at June 30, 2009 and no long term debt," said William J. Biggar, president and chief executive officer, in a press release.

"In addition to our strong balance sheet, we expect positive cash flow from the anticipated restart of the Sleeping Giant mine in the fourth quarter of this year," Biggar said. "Although we have the ability to raise additional funds to support our growth initiatives, we will be disciplined and only execute on terms that are attractive to our company."

NAP went on to say that it "remains on track to meeting its core business objectives of 2009," and in addition to its Sleeping Giant project, was pleased with initial results from its Lac des Iles palladium mine.

Calls seeking further comment went unreturned Wednesday.

NAP's equity (Toronto: PDL) gained 20 cents, or 6.97%, to C$3.07.

Nexus closes on A$30 million

Nexus Energy conducted a A$30.98 million private placement of ordinary shares, the company announced.

The Melbourne, Australia-based oil and gas company sold 96.8 million shares at $0.032 each.

In addition to the placement, the company said it is planning a rights offering for existing shareholders. Under the terms of the offering, Nexus will give investors 1 for 3.75 non-renounceable rights at A$0.22 per share for proceeds of about A$12 million, according to a press release.

The placement will strengthen Nexus' balance sheet and provide financial flexibility through the end of 2010, Nexus said in the statement.

"We are pleased to offer shareholders the opportunity to participate in the rights issue at an attractive discount, recognizing shareholders' ongoing support during these unprecedented economic global times," remarked Nexus' Chairman Michael Fowler.

"The placement and rights issue will enable Nexus to successfully complete Longtom and provides the opportunity to maximize the value of Nexus' interest in the Crux liquids project. On behalf of the Nexus board I look forward to delivering shareholder value by further developing Nexus' existing assets and I encourage shareholders to subscribe for their entitlement," Fowler said.

Nexus' equity (Australia: NXS) closed at A$0.35.

Airspan sells shares to Oak

Airspan Networks, a Boca Raton, Fla.-based broadband wireless equipment provider, said it raised $10 million from a private placement of preferred shares in a news release.

The company sold 1.25 million shares of the series C convertible preferred stock to Oak Investment Partners XI, LP. Each share is convertible into 100 common shares. The shares bear an initial conversion price of $0.08 per share, which will move up to $1.20 per share following a planned 1-for-15 reverse stock split.

The stock split is expected to become effective in mid-September.

"We are very pleased by Oak's timely investment in the company," said Eric Stonestrom, Airspan's president and CEO, in the statement.

"We look forward to continuing our working relationship with Oak as the company's new majority owner. This new investment by our largest shareholder would resolve our current funding issues and allow us time to restructure the company to weather the current downturn."

Airspan's shares (Pink Sheets: AIRN) improved by $0.008, or 10%, to $0.088. Market capitalization is $5.26 million.

WaferGen gains $6.26 million

WaferGen Bio-Systems took in $6.26 million via a private placement of stock, the company said in a regulatory filing.

The company issued approximately 5 million common shares in several tranches. The shares sold at $1.25 each and included 30% warrant coverage.

The five-year warrants are exercisable at $2.00.

The company did not return e-mails seeking comment.

WaferGen's stock (OTCBB: WGBS) fell 10 cents, or 5%, to $1.90. Market capitalization is $56.4 million.

WaferGen Bio-Systems is a Fremont, Calif.-based developer, manufacturer and marketer of laboratory analytical instruments.

Mint settles unit sale

Among other settled financings, Mint Technology raised C$2.49 million in a private placement of equity units.

The deal originally priced for C$1.5 million on July 10 and was upsized to C$2.5 million on July 21.

In total, the company sold approximately 19.88 million units at C$0.125 each. The units held a common share and a warrant, which is exercisable at C$0.15 until Aug. 31, 2011.

Proceeds will be used, in part, to advance the company's expansion of its U.K. business and for a Middle East acquisition.

The company declined to comment on the deal.

Mint's equity (TSX Venture: MIT) gained 4 cents, or 40%, to C$0.14. Market capitalization is C$3.14 million.

Mint Technology is a Toronto-based developer and marketer of prepaid credit cards.

Toronto-based Mint develops and markets prepaid credit cards.

Western Lithium aims for C$15.2 million

Western Lithium Canada is planning a C$15.2 million private placement of common share units, according to a press release.

The company will issue 16 million units, with each unit containing one common share and one half-share warrant. The units will sell at C$0.95 each, and each whole warrant is exercisable at C$1.25 for 18 months.

Cindy Burnett, investor relations for the company, said that Western Lithium was pleased with the terms of the deal.

"It is certainly a good time for lithium stocks, particularly in the Canadian market," she said. "So it is probably a good time to finance lithium companies and so we took advantage of that opportunity."

Funds raised from the transaction will go toward ongoing engineering and development studies for the company's Nevada projects. Burnett said a scoping study was currently under way and that a prefeasibility study was planned for next year.

Settlement is expected by Sept. 22.

Western Lithium's equity (TSX Venture: WLC) dipped 11 cents, or 11%, to C$0.89.

Western Lithium Canada is a Vancouver, B.C.-based lithium resource company.

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