Canadian private placements dominate market; Greystar Resources launches C$18.6 million deal

By Sheri Kasprzak

Atlanta, Oct. 27 - Canadian private placements dominated the market Wednesday, fueled by strong resources markets.

U.S. companies, however, seemed to hold back, waiting for key markets to improve, according to sell-side sources.

"Some companies might be waiting for a better market environment," said one sell-side source. "Volume did take a slump today. I've only seen a few small deals."

North of the border, larger Canadian deals were featured.

"Volume is really good in Canada," said one sell-sider. "Again today, we saw a lot of resources companies. The market is really good for those companies right now."

Greystar Resources Ltd. got into the action with C$18.6 million offering.

"We're happy about the way the deal priced. We feel it was in line with the market," said Greystar president David B. Rovig.

"We decided to do a private placement because of the speed. We could raise the money we needed in a shorter amount of time."

The deal consists of six million units of one share and one half-share purchase warrant at C$3.10 per unit.

The whole warrants entitle the holder to one share at C$4 for two years after the deal closes. If, following the expiry of the four-month hold, the company's stock is above C$5 for more than 20 consecutive trading days, Greystar has the right to accelerate the expiry date to 20 business days.

Jennings Capital Inc. and Oceans Equities Ltd. will serve as placement agents in the deal.

The agents may increase the size of the offering by C$3.1 million up to 48 hours before closing.

Greystar is a gold and silver mining company based in Vancouver, B.C. The company intends to use the proceeds from the financing for the advancement of one of its projects, for exploration and for general working capital.

Greystar's stock closed down C$0.15 at C$3.20 Wednesday.

InterRent's C$12 million offering

InterRent International Properties Inc. finalized the terms on a private placement to raise up to C$12 million, the company said Wednesday.

The deal consists of at most 24 million units of one share and one half-share purchase warrant for at least C$0.50 per unit.

The whole warrants, exercisable for one year after closing, allow for the purchase of a share for at least C$0.55 per share. The deal is scheduled to close Nov. 30.

Canaccord Capital Corp. will serve as placement agent in the deal, which is being conducted on a best-efforts basis.

InterRent is a Toronto-based real estate company. Its stock closed down C$0.10 at C$0.45 Wednesday.

Bankers Petroleum upsizes

Bankers Petroleum Ltd. said Wednesday it upsized its previously announced C$15 million private placement to C$17 million.

The company will issue 30.9 million units of one share and a half-share purchase warrant at C$0.55 per unit. The company had initially planned to issue 27.3 million units, but added 3,636,364 units Wednesday.

The whole warrants, good for five years, allow for the purchase of an additional share at C$0.95 per share.

Orion Securities Inc. and Canaccord Capital Corp. are the placement agents in the deal, which is expected to close in mid-November.

Bankers is a Vancouver, B.C.-based oil company. The company plans to use the proceeds from the deal to accelerate the development of one of its oil fields in Albania.

On Wednesday, the company's stock closed down C$0.04 at C$0.55.

Comtech raises $8.8 million

Comtech Group Inc. said Wednesday it raised $8.8 million in a private placement.

The deal consists of 5.04 million shares at $1.75 per share.

The company also intends to sell an additional 1.26 million shares at $1.75 per share for about $2.2 million in a second deal scheduled to close Nov. 4.

C.E. Unterberg, Towbin and W.R. Hambrecht & Co. served as co-lead placement agents in the deal.

Comtech is based in Shenzhen, China, and manufactures mobile handsets and telecommunications equipment. The company plans to use the proceeds from the deal for working capital and general corporate purposes, and to make acquisitions.

Comtech's stock closed up $0.05 at $1.95 Wednesday.

Grand Banks' upsizes deal

Grand Banks Energy Corp. has increased the size of its previously announced C$5.075 million private placement to C$6.525 million.

A total of 4.5 million flow-through shares will be issued at C$1.45 per share.

The company said Oct. 25 it would raise money through a private placement.

Subsequently Acumen Capital Partners and Haywood Securities Inc. exercised an option to place an additional 500,000 flow-through shares. Grand Banks also issued an additional one million flow-through shares for a total of C$6.525 million.

Grand Banks, based in Calgary, Alta., is an oil and gas exploration company. The company plans to use the funds raised in the private placement for exploration and development.

The company's stock closed unchanged at C$1.25 Wednesday.

White Knight gets C$2.37 million

White Knight Resources Ltd. received C$2.37 million in a private placement agreement, the company said Wednesday.

White Knight sold 1.5 million units of one share and one share purchase warrant to Teck Cominco American Inc. at C$1.58 per unit.

The warrants are good for one year at a price of C$2.50 per share.

White Knight is a Vancouver, B.C.-based gold exploration company. The company's stock closed unchanged at C$1.09 Wednesday.

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