Argyle refinances debt through $3 million convertible placement; ZEOX, Celtic each raise C$1 million

By Kenneth Lim

Boston, Jan. 9 - Argyle Security, Inc. raised $3 million from a sale of convertible preferred shares that allowed the company to refinance existing debt.

ZEOX Corp. took in C$1 million through a non-brokered offering of shares and warrants to raise working capital.

Celtic Minerals Ltd. placed C$1 million of units through a non-brokered deal to assess a potential development in Laos.

Argyle refinances debt

Argyle Security issued $3 million of convertible preferred shares to funds managed by MML Capital Partners as part of a private placement.

The company sold 27,273 4% convertible voting preferreds under the deal. Each preferred is initially convertible into 100 common shares at $1.10 per share. Argyle common stock (OTCBB: ARGL) dropped 5% or $0.04 to close at $0.76 on Friday. The company has a market capitalization of $4.5 million.

Proceeds were used reduce a $10 million senior term loan with The PrivateBank and Trust Co. by $3 million. Argyle also extended the maturity of a mezzanine loan with William Blair Mezzanine Capital Fund III, LP, a fund managed by Merit Capital Partners, by one year to January 2011. Both lenders also agreed to amend certain financial covenants.

San Antonio-based Argyle is involved in the physical electronic security industry.

"We are pleased to announce this refinancing," Argyle chairman and chief executive Bob Marbut said in a statement. "Management believes that the financial flexibility gained from the amendments of our primary credit facilities will enable us to better serve our customers in the year ahead."

Argyle president Sam Youngblood added: "Despite the significant slowdowns in many sectors of the economy, the corrections and commercial security markets remain particularly strong. We believe that this refinancing will enable us to execute our 2009 business plan, continue to meet our customer expectations for quality service, and continue to strengthen our position as a leader in the corrections market and the fast growing critical infrastructure sector in the commercial security market."

ZEOX raises C$1 million

ZEOX raised C$1 million through a non-brokered private unit placement for working capital.

The company offered 4 million units of one common share and one warrant at C$0.25 per unit. Each warrant is exercisable at C$0.35 for one year.

ZEOX is a C$16.63 million market capitalization company. Its common stock (TSX: ZOX) closed at C$0.30 on Friday, lower by 6.25% or C$0.02.

Proceeds will be used for general working capital.

Based in Vancouver, B.C., ZEOX manufactures industrial mineral products.

Celtic Minerals eyes C$1 million

Celtic Minerals plans to sell C$1 million of stock and warrant units through a non-brokered private placement.

The offering comprises 10 million units of one common share and one half-share warrant at C$0.10 per unit. Each two-year warrant will be exercisable at C$0.15 per share.

Celtic Minerals common stock (TSX: CME) rose 10% or C$0.01 to close at C$0.11 on Friday.

Proceeds will be used for general corporate purposes and the further assessment of a potential prospect in Laos.

Based in Calgary, Alta., Celtic is a mineral exploration company.

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