Shear Wind financing planned; Bravo Venture upsizes new deals; ERA Carbon to issue stock

By Stephanie N. Rotondo

Portland, Ore., Oct. 14 - The private placement market continued to be busy Wednesday, with a variety of sectors represented.

Shear Wind Inc. brought a C$26.93 million financing to market. The company intends to privately place common shares to raise the funds, and the transaction will result in a change of control.

Meanwhile, Bravo Venture Group Inc. announced that it had increased the total proceeds from a private placement of units. The upsizing was due to the original deal being oversubscribed.

ERA Carbon Offsets Ltd. will take in more than C$5 million from a private placement of equity, the company said. The deal is being touted as a "strategic investment" with one of the company's largest clients.

Elsewhere, Century Mining Corp. announced a C$5.25 million private placement of shares. The funds will be used for drilling projects, among other things.

Among completed deals, CMA Corp. Ltd. said it raised A$5 million from a private equity sale. The company also raised A$20 million from a public offering.

Deltex Medical Group plc also settled a deal, taking in £2 million.

Shear Wind financing planned

Shear Wind announced a C$26.93 million private placement of common shares.

The Halifax, N.S.-based company will sell approximately 96.43 million of the shares at C$0.2792 per share to Genera Avante Holdings Canada Inc., according to a press release.

Upon closing, the financing will result in a change of control. Genera Avante Holdings Canada will become the new "control person."

The transaction is subject to shareholder approval. Shear Wind is seeking written consents of shareholders holding more than 50% of the current outstanding equity.

Settlement is expected by Oct. 30.

Calls seeking comment went unreturned Wednesday.

Shear Wind's stock (TSX venture: SWX) finished the session unchanged at C$0.30. Market capitalization is C$14.8 million.

Shear Wind is a developer of renewable energy.

Bravo upsizes deals

Bravo Venture Group said in a press release that a previously announced non-brokered private placement of units was oversubscribed and thus the company decided to upsize the deal.

The deal originally priced at C$7.7 million on Oct. 6. The company now intends to raise C$8.66 million.

Bravo will sell 6.35 million common-share units at C$0.45 per unit. The units will contain one common share and one half-share warrant. Each whole warrant is exercisable at C$0.50 for two years.

The company will also sell 11.6 million flow-through units, consisting of one flow-through common share and one half-share warrant. The units will be issued at C$0.50 each, and whole warrants are exercisable at C$0.60 for two years.

Proceeds will be used for drilling projects and general working capital.

Bravo's equity (TSX Venture: BVG) fell 1 cent, or 2.17%, to C$0.45 on Wednesday. Market capitalization is C$43.1 million.

Bravo Venture is a Vancouver, B.C.-based resource exploration company.

ERA to issue stock

ERA Carbon Offsets will take in C$5.52 million from a private placement of equity, the company said in a news release.

The company intends to issue 7.36 million common shares to a large unnamed German energy company. The shares will sell at C$0.75 each.

A source familiar with the financing said it was a "strategic investment by a German power company," which is also one of ERA's biggest clients. The source said the company wanted "to have them as a partner ongoing" and that the investor had also expressed interest in obtaining a larger portion of the equity. However, the company was "pleased to be able to give them 30% at this time."

The investor will also have the right to nominate a member to ERA's board of directors.

Proceeds from the non-brokered deal will be used for general working capital.

ERA's equity (TSX Venture: ESR) declined 8 cents, or 10%, to C$0.72. Market capitalization is C$12 million.

ERA Carbon Offsets is a Vancouver, B.C.-based provider of carbon emission benefits.

Century to raise C$5 million

Century Mining arranged a C$5.25 million private placement of stock.

The company will issue 26.25 million flow-through common shares at C$0.20 per share.

"We are pleased to be able to simplify the large transaction and complete the flow-through private placement..." remarked Margaret Kent, president and chief executive officer, in a statement. "This allows us to continue our exploration and mine development efforts in preparation for the start up of the Lamaque mining project, which will commence as soon as the larger financing is completed."

Proceeds will be used for an underground drill program at Lamaque, as well as for ongoing Vulcan computer modeling and resource and mine planning. Settlement is expected by Oct. 23.

Century's shares (TSX Venture: CMM) dropped a penny, or 5.26%, to C$0.18. Market capitalization is C$36.6 million.

Century Mining is a Blaine, Wash.-based gold and diamond mining company.

CMA wraps equity placement

CMA Corp., a Sydney, Australia-based scrap metal recycling group, settled an A$5 million private placement of ordinary shares.

The company sold the shares at A$0.10 per share.

In addition, the company raised A$20 million from a share purchase plan.

"The very strong support from existing and new investors indicates they appreciated the company's efforts to manage its way through the global downturn and understand that CMA is now in a strong position to take advantage of improving economic conditions," said Doug Rowe, managing director, in a press release.

"At CMA, we have remained focused on controlling our costs while at the same time investing strategically to improve our position and capacity in our key markets. The increased capital available to us will be used for working capital and to support the continued growth of the company's operations.

"Demand for our products and services has started to improve, particularly in metal recycling where we are beginning to see increased demand from customers in our key markets. Our contracting division is also experiencing an improved pipeline of opportunities and we are confident we can secure several significant new demolition, remediation and deconstruction projects in the year ahead."

CMA's stock (Australia: CMV) ended Wednesday at A$0.11.

Deltex completes stock sale

Deltex Medical wrapped a £2 million private placement of ordinary stock, the company said.

Approximately 22.22 million shares were sold at 9p each. The price per share represented a 2.7% discount to the closing middle market price of 9.25p on Oct. 13.

"We are delighted with the support from our existing investors and new institutional investors," commented Nigel Keen, chairman, in a news release. "The proceeds of the placing will be used to strengthen our balance sheet to give us the headroom we need to grow the business profitably and build shareholder value as the company moves through cash flow breakeven."

Deltex's equity (London: DEMG) closed at 9.5p. Market capitalization is £9.47 million.

Deltex Medical Group is a Chichester, England-based oesophageal Doppler monitoring company.

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