Heritage gets C$181.5 million; Zongshen pockets C$35.19 million; Green Plains wraps $9.72 million

By LLuvia Mares

New York, Nov. 14 - Heritage Oil Corp. guzzled up C$181.5 million in proceeds after closing on a private placement of stock.

"We consider this equity financing to be a turning point in the development of the company, allowing it to accelerate work programs as well as providing flexibility to expand the existing portfolio of assets," said Tony Buckingham, company chief executive officer, in a press release.

"The strong equity backing of Heritage is a testament to the company's existing portfolio and management team."

The company sold 3 million common shares at C$60.50 apiece.

The company's stock (Toronto: HOC) closed at C$58.72 on Wednesday, up C$1.22 from the C$57.50 close on Nov. 13.

Proceeds will be used for exploration and development as well as for general working capital purposes.

Heritage is a Calgary, Alta.-based oil and gas production company.

Zongshen closes C$35.19 million

Another company completing a substantial deal was Zongshen PEM Power Systems Inc., which pocketed a C$35.19 million private placement of shares on Wednesday.

The deal priced on Oct. 29 for C$30.6 million with a C$4.59 million over-allotment option.

"This funding provides us with the capital we need to launch our Blue Sea e-bikes and position ZPP as a leader for premium e-bikes in China and selected international markets," said Yao Li, company president, in a press release.

The company sold 11.5 million common shares at C$3.06 each. Of these, 1.5 million shares were from the fully exercised greenshoe.

The company's stock (TSX Venture: ZPP) closed at C$3.37 on Wednesday, down C$0.02 from Tuesday's C$3.39 close.

GMP Securities LP led a syndicate of underwriters that also included Canaccord Capital Corp., Laurentian Bank Securities Inc., Orion Securities Inc. and Research Capital Corp. The underwriters received one-year warrants to purchase 690,000 common shares at C$3.06 each.

Based in Vancouver, B.C., Zongshen produces alternate power systems.

Green Plains wraps $9.72 million

Another company that received some green on Wednesday was Green Plains Renewable Energy, Inc., which successfully completed a private placement of stock for $9.72 million.

"Green Plains is excited about the participation of this group of accredited investors," said Wayne Hoovestol, company chief executive officer, in a press release. "This capital infusion demonstrates their confidence in Green Plains' strategy and its ability to become a leader in ethanol production.

"As a result of the private placement, Green Plains benefits from a strengthened financial position during a period of tight margins," he said in the release. "A substantial portion of the additional liquidity is expected to be used to increase corn inventories to support our long-term strategy of vertical integration."

The company sold 1.2 million shares at $8.10 apiece.

Green Plains' stock (Nasdaq: GPRE) closed at $9.26 on Wednesday, down $0.11 from Tuesday's $9.37 close.

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

Green Plains is an ethanol producer based in Omaha, Neb.

Microbix settles C$6.83 million

In the technology sector, Microbix Biosystems Inc. finalized a C$6.825 million private placement deal and a new relationship with its investors.

"For the first time, Microbix has attracted strong institutional sponsorship," said William J. Gastle, company chief executive officer, in a press release. "This reflects the strength of our company's core business as well as the market opportunities inherent in our Semen Sexing Technology, Urokinase and Virusmax technology."

The company sold 6.5 million units at C$1.05 per unit. Each unit consists of one common share and one half-share warrant. Each whole warrant will be exercisable at C$1.26 for five years.

The company's stock (Toronto: MBX) closed at C$1.23 on Wednesday, up C$0.07 from the C$1.16 close on Nov. 13.

The financing was conducted by a syndicate of agents led by Dundee Securities Corp. and including J.F. Mackie & Co. Ltd.

Proceeds will be used for expansion.

Toronto-based Microbix is a biotechnology company focused on large-market biotherapeutic drugs, vaccines and animal reproduction technologies.

Vertical wraps $4 million

Vertical Branding, Inc. was able to reduce at least half of its outstanding debt after settling a $4 million private placement of stock on Wednesday.

"We are extremely pleased to announce the financial backing of a firm like Renn Capital and consider their investment to be a validation of what we have accomplished over the past year," said Nancy Duitch, company chief executive officer, in a press release.

"In addition to allowing us to reduce a significant portion of our prior debt obligations, this financing brings valuable working capital that we can immediately invest in product inventory, new product development, and an in-house customer service function."

The company sold 6.66 million shares at $0.60 per share and warrants to purchase 6.66 million additional shares at $1.00 each and one-half share exercisable at $1.50. The shares were bought by four funds managed by RENN Capital Group, Inc.

The company's stock (OTCBB: VBDG) closed at $0.58 on Wednesday, down $0.07 from Tuesday's $0.65 close.

Proceeds will be used to invest in product inventory, new product development, reduce debt and for working capital.

Los Angeles-based Vertical is a consumer products branding and marketing distribution company.

US Dataworks sells $4 million

US Dataworks, Inc. also went home $4 million richer after wrapping up a private placement of three-year secured convertible notes and warrants.

"We are pleased with the level of commitment we have received from these highly sophisticated institutional funds," said Charles E. Ramey, company chairman and chief executive officer, in a press release.

"It is our belief that with this financing we are adequately capitalized to sustain our course toward profitability and pursue other avenues that may deliver value to our shareholders."

The investors also received a warrant for 4,651,162 shares. The warrants are exercisable at $0.43 for five years.

The three-year notes initially bear interest at Libor plus 500 basis point, reset at the beginning of each quarter. The rate is initially 9.81% per year. Interest is payable quarterly in arrears.

The notes are convertible into common stock at $0.43 per share.

The company's stock (Amex: UDW) closed at $0.38, down $0.05 from Tuesday's $0.43.

Holders have a put option, exercisable on the nine-month and 18-month anniversaries of closing.

US Dataworks is a Houston-based developer of payment processing solutions.

Wynnstay to raise £1.28 million

Still in the negotiating phase of its deal, Wynnstay Group plc said it plans a £1.28 million private placement of shares through Shore Capital Stockbrokers Ltd.

"We are delighted with the strong interest we have had in our business from a number of blue chip institutions and we very much welcome our new shareholders," said Bernard Harris, company managing director, in a press release.

The company will sell 493,000 ordinary shares at 260p per share.

Wynnstay's stock (London: WYN) closed at £264.40, up £3.20 from Tuesday's £261.40 close.

Proceeds will be used to fund Wynnstay's growth strategy.

Based in Llansantffraid-Ym-Mechain, Wales, Wynnstay manufactures and supplies agricultural products and services to farmers and the rural community in Wales, the Welsh border counties and the North and South Midlands.

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