Cockatoo offers A$10 million of stock; Health Benefits in convertible deal; ZST, mPhase tap insiders

By Kenneth Lim

Boston, Jan. 21 - Cockatoo Coal Ltd. plans to raise A$10 million through a stock placement to two existing shareholders.

Health Benefits Direct Corp. placed $4 million of convertible preferred stock to raise working capital.

ZST Digital Networks, Inc. sold $3.52 million of its common stock to members of its board and management.

mPhase Technologies Inc. issued a $1.1 million convertible notes to a JMJ Financial as part of a private placement.

Cockatoo in stock deal

Cockatoo Coal plans to sell A$10 million of its stock to two existing shareholders through a private placement.

The deal comprises about 19.76 million shares at A$0.506 apiece. Cockatoo common stock (ASX: COK) closed unchanged at A$0.305 on Wednesday. The company has a market capitalization of A$127.9 million.

Korea East-West Power Co. Ltd and Kores Australia Pty Ltd. will each take half of the shares offered.

Proceeds will be used to partly finance the company's recent acquisition of the Baralaba coal mine, strengthen the company's capital base to enable it to continue to expand its coal project portfolio and support the continued exploration and development of existing projects.

Cockatoo is a coal company based in Sydney, Australia.

ZST Digital Networks, Inc. raised $3.52 million in a private placement of common stock on Jan. 14, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company sold 12.53 million shares at $0.2806 apiece.

The private company is based in Zhengzhou, China.

Health Benefits raises $4 million

Health Benefits Direct issued $4 million of convertible preferred stock and warrant units to Co-Investment Fund II, LP.

Each $4 unit comprises one series A convertible preferred share and one five-year warrant with an exercise price of $4 per share. Each preferred has an initial conversion price of $0.20 per common share and will pay 20 times any dividend that is declared on the common.

Health Benefits common stock (OTCBB: HBDT) closed unchanged at $0.095 on Wednesday. The company's market capitalization is $3.9 million.

Proceeds will be used for working capital.

Based in Radnor, Pa., Health Benefits provides health and life insurance products to individuals.

The company could raise a further $1 million through an offering of an additional 250,000 units to existing shareholders.

"We are very pleased to have completed this private placement, especially in such a difficult financial environment," Health Benefits acting principal executive officer and chief financial officer Anthony R. Verdi said in a statement. "This is another positive step in the right direction for the company as we continue to restructure our operations to focus on, and leverage, Health Benefits' innovative and proprietary technology solutions.

"Securing this additional capital provides the financial flexibility needed to grow the company's Atiam Technologies subsidiary where its InsPro software is gaining greater market recognition from rating agencies, insurance carriers and third party administrators. The capital also provides the company with increased flexibility to capitalize on v2.0 of Insurint, our proprietary and revolutionary field agent sales platform."

ZST takes in $3.52 million

ZST Digital Networks received $3.52 million through a placement of its common stock to management.

The company sold 12.53 million shares at $0.2806 apiece. ZST stock is not listed.

The shares were bought by ZST chief executive and chairman Zhong Bo as well as management members Wu Dexiu, Huang Jiankang, Sun Hui and Li Yuting.

Zhengzhou, China-based ZST is a supplier of digital and optical network equipment.

mPhase sells convertible

mPhase Techonlogies placed a $1.1 million 12% convertible promissory note due Dec. 31, 2011 to JMJ Financial.

The convertible has an initial conversion price at 75% of the lowest trade price in the 20 trading days prior to conversion.

mPhase (OTCBB: XDSL), a $14.2 million market capitalization company, saw its common stock gain 8.33% or just under a penny to close at $0.026 on Wednesday.

JMJ Financial paid for the convertible with a $1 million 13.2% secured promissory noted due Dec. 31, 2012 that will be paid in $100,000 monthly amounts beginning 210 days after execution of the deal.

mPhase, based in Norwalk, Conn., develops broadband communications products.

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