Medoro settles warrant offering; Vero raises C$12.61 million; Biostar completes preferred sale

By Stephanie N. Rotondo

Portland, Ore., Nov. 3 - It was a day for completing deals in Tuesday's private placement market.

Among the day's wrapped transactions, Medoro Resources Ltd. said it pocketed nearly C$103 million from a private placement of special warrants. Proceeds will be used for exploration, among other things.

Vero Energy Inc. also settled a deal, raising C$12.61 million. The company sold flow-through shares in its effort to raise the funds.

And Biostar Pharmaceuticals Inc. came away with C$3.61 million from its private placement of convertible preferred shares.

In new deals, Blinkx plc announced it would issue new ordinary stock in its quest to raise £5.03 million. Autonomy Corp. plc is underwriting the deal and also intends to participate in the financing.

Medoro settles warrant placement

Medoro Resources completed a private placement of special warrants for total proceeds of C$102.96 million.

The company issued 128.7 million of the warrants at C$0.80 each. The warrants are convertible into equity units containing one common share and one half-share warrant.

Whole warrants are exercisable at C$1.25 for two years.

Approximately 3.7 million of the warrants were issued as part of a partially exercised greenshoe, for proceeds of C$2.96 million.

Proceeds will be used for exploration and drilling expenses, as well as for the repayment of debt and social work related to Medoro's Zona Alta of the Marmato Mountain.

Calls seeking comment were not returned Tuesday.

Medoro's stock (TSX Venture: MRS) gained 16 cents, or 28.57%, to C$0.72. Market capitalization is C$116 million.

Medoro resources is a Toronto-based gold exploration and development company.

Vero wraps C$12.61 million deal

Among other settled financings, Vero Energy took in C$12.61 million from a private placement of flow-through shares, according to a press release.

The deal originally priced for C$12.5 million on Oct. 19.

Vero sold approximately 2.23 million shares at C$5.65 per share on a bought-deal basis.

Proceeds will be used for exploration.

Calls seeking comment went unreturned Tuesday.

Vero's equity (Toronto: VRO) improved by 6 cents, or 1.58%, to C$3.86. Market capitalization is C$157 million.

Vero Energy is a Calgary, Alta.-based junior oil and gas exploration and development company.

Biostar completes preferred sale

Biostar Pharmaceuticals also settled a deal, taking in $3.61 million from a private placement of series B convertible preferred stock.

The deal closed Nov. 2, according to a regulatory filing.

The company sold 2.06 million of the preferreds. They are convertible into common stock on a 1 for 1 basis.

Additionally, investors received warrants for 500,000 additional common shares. The warrants are exercisable at $3.00 for five years.

Proceeds will be used for asset purchases.

Biostar's shares (OTCBB: BSPM) increased by 15 cents, or 6.67%, to $2.40.

Biostar Pharmaceuticals is a Xiangyang, China-based pharmaceutical company.

Blinkx to sell stock

Blinkx, a London-based provider of video search services on the internet, intends to raise £5.03 million via a private placement of ordinary shares.

The company will sell approximately 27.92 million of the shares at 18p per share.

Autonomy Corp. plc, a principal shareholder of Blinkx, is underwriting the deal. Autonomy will also participate in the financing.

"Today blinkx is the global gold standard for video and TV search and we will continue the strong investment in both our brand and technology to capitalize on this once-in-a-generation opportunity," remarked Suranga Chandratillake, chief executive officer, in a press release.

"During the downturn blinkx has made significant progress and is now ready to ride the wave of an upturn. We have prepared the business for this and will take all opportunities to aggressively pursue this growth when an upturn arrives."

Blinkx's shares (London: BLNX) closed at 17.5p. Market capitalization is £54.2 million.

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