Baron Energy inks credit line; Adamus plans share placement; Liberator settles $7 million deal

By Stephanie N. Rotondo

Portland, Ore., March 10 - Wednesday's PIPE deals decreased in size with fewer double-digit transactions, but the market remained active.

Baron Energy Inc. announced it had arranged a three-year $10 million credit line with Kodiak Capital Group LLC. The company said the financing would help it to achieve its short- and mid-term goals.

Meanwhile, Adamus Resources Ltd. said it would launch a private placement of stock in an effort to raise A$9 million. The company also intends to conduct a rights offering in conjunction with the private stock sale.

In completed deals, Liberator Medical Holdings Inc. wrapped a $7 million placement of stock. The shares were sold to a single unnamed investor.

Also, Cortex Business Solutions Inc. could raise up to C$7 million from a private placement of stock. That amount includes a C$1 million over-allotment option.

And, Gold Resource Corp. settled a private placement of equity, taking in more than $5 million.

Baron inks credit line

Baron Energy secured a $10 million equity line of credit with Kodiak Capital Group LLC.

Kodiak has agreed to purchase up to $10 million of common shares over a three-year period.

The potential purchases are subject to the parties inking "mutually acceptable investment agreements," the company said in a press release.

"Our flexible financing structure enhances management's ability to develop their asset base," said Ryan Hodson, managing director of Kodiak, in the release. "The facility is ideal for event-driven companies, such as those in exploration and production, which often have immediate cash requirements when favorable prospects and development opportunities come to fruition."

Added Ronnie Steinocher, president and chief executive of Baron: "Our management team has extensive operating experience in the Permian Basin of West Texas and a pipeline of acquisition opportunities within our core area of operations."

"Kodiak will provide us with the necessary capital to reach our short and mid-term goals, allowing us to aggressively move forward with a number of producing property acquisitions," Steinocher said. "These acquisitions, when added to our current production, will provide a solid base for additional acquisitions as the year progresses. If we are to reach our year-end production goal, we will need to be well along our path by the end of the second quarter."

Baron's equity (OTCBB: BROED) ended unchanged at $0.38.

Baron Energy is a Houston-based oil and gas explorer.

Adamus plans share placement

Adamus Resources is seeking A$9 million via a private placement of ordinary shares, according to a press release.

The Perth, Australia-based company will issue 25 million of the shares at A$0.36 each. The deal will come in two tranches, with the first expected to settle by March 16 and the second by April 1.

Additionally, the company is conducting a 1-for-5 renounceable rights issue at A$0.36 per share to raise up to A$21.5 million.

Total proceeds from both financings will be used "to provide additional capital and accelerate exploration activities at the company's highly prospective Southern Ashanti Project in Ghana," the release said.

Adamus also noted that it had received "firm commitments" from some investors, leaving the private placement "significantly oversubscribed."

"The high calibre of new investors joining our share register as part of the placement, as well as the ongoing support of existing institutional shareholders, is testament to the quality of the work by our team in Ghana in developing and implementing the Southern Ashanti Project," said Mark Bojanjac, managing director, in the release.

"With the funds to be raised under the equity raisings together with the Macquarie Bank Limited debt facility, the Project development is fully funded through to production. Furthermore, the company will now have financial capacity to undertake additional exploration in 2010 aimed at expanding our existing Ore Reserve and Mineral Resource base as we develop the mine."

Adamus' stock (Australia: ADU) closed at A$0.40.

Liberator settles $7 million equity sale

Liberator Medical, a Stuart, Fla.-based medical supply company, raised $7 million from a private placement of equity, the company said in a press release.

The deal settled March 9. A single institutional investor participated in the transaction.

The company issued approximately 4.66 million common shares in the financing.

"We are...pleased to have completed a significant institutional equity funding," said Mark Liberator, CEO, in the release. "This investment expands our institutional investor base and greatly strengthens our balance sheet. This will be key to accelerating our growth, which is driven by advertising, and maximizing the potential for Liberator and our recently expanded infrastructure."

Liberator's shares (OTCBB: LBMH) gained 13 cents, or 6.57%, to $2.11. Market capitalization is $71.3 million.

Cortex seeks up to C$7 million

Cortex Business Solutions intends to raise C$6 million via a private placement of stock, the company announced.

There is a C$1 million greenshoe.

Cortex will sell 12 million common shares at C$0.50 each on a bought-deal basis.

Proceeds will be used for expanding marketing and business development in the United States, sector expansion, working capital and general corporate purposes. Settlement is expected by March 30.

Cortex's equity (TSX Venture: CBX) closed steady at C$0.55. Market capitalization is C$65.9 million.

Cortex Business Solutions is a Calgary, Alta.-based provider of e-business products and services.

Gold Resource sells stock

Gold Resource took in $5.17 million from a private placement of common stock, according to a regulatory filing and subsequent press release.

The shares were sold to Hochschild Mining Holdings Ltd. on March 8.

A total of 600,000 shares were issued at $8.62 per share.

"Gold Resource Corporation will use the proceeds of the private placement for working capital as it ramps up to commercial production at its El Aguila Project in Oaxaca, Mexico," the company said in the release.

"We are pleased Hochschild is supporting our need for working capital until commercial production is reached," added William W. Reid, president. "We believe we are very close to our commercial production goal."

"We are extremely impressed with the quality of GRC's assets and the speed at which the company is progressing towards commercial production which is due to commence this quarter," remarked Miguel Aramburú, CEO of Hochschild Mining.

Gold's shares (OTCBB: GORO) fell 2 cents, or 0.19%, to $10.28. Market capitalization is $475 million.

Gold Resource is a Denver-based gold and silver exploration company.

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