Uranium One to sell 20% equity; Magellan plans stock offering; Managed Support takes advantage

By Devika Patel

Knoxville, Tenn., Feb. 10 - Uranium One, Inc. plans to raise C$270 million in a private placement of shares with a consortium of Japanese companies, which will result in the investors owning nearly 20% of the company's equity.

Magellan Petroleum Corp. also plans to sell its stock. The oil and gas company priced a $10 million deal Tuesday to help fund its international business development. Its shares (Nasdaq: MPET) jumped 18.03% Tuesday, or 11 cents, closing at $0.72.

Across the Atlantic, Managed Support Services plc priced a £6 million equity sale. The deal will further augment the company's already strong balance sheet and help fund a potential acquisition.

Uranium One plans C$270 million

Uranium One announced it will raise C$270 million in a private placement of stock with a corporation formed by Tokyo Electric Power Co., Inc., Toshiba Corp. and Japan Bank for International Cooperation.

The group will buy 117 million common shares at C$2.30 apiece, for a 19.95% equity stake in the company. The deal will settle March 31.

"Uranium One is very pleased to partner with such highly respected leaders in the global nuclear industry," Uranium One's president and chief executive officer Jean Nortier said in a press release. "We will benefit from the consortium's knowledge and expertise in the nuclear industry, from its high level relationships in Kazakhstan and from its significant financial resources.

"The proceeds from the private placement, combined with Uranium One's consolidated cash balance of approximately $185 million at the end of January, will result in a solid balance sheet to fund our growth and development plans," Nortier continued.

The company also agreed to a long-term offtake agreement and a strategic relationship agreement with the investors, under which they may make two appointments to Uranium One's board of directors and purchase up to 20% of the uranium explorer's available production.

Company shares (Toronto: UUU) rose 3.98%, or 8 cents, to close at $2.09 Tuesday.

Magellan secures $10 million

Magellan negotiated a $10 million shares sale with investor Young Energy Prize SA.

The investor will buy 8,695,652 common shares at $1.15 per share, along with a warrant for 4,347,826 shares, exercisable at $1.20 for five years.

Proceeds will be used to develop the company's assets in Australia and to fund its international business development activities. Magellan has a market capitalization of $31.1 million.

"We are excited that Young Energy Prize has shown confidence in and has made this first step toward Magellan's future growth plan, especially in these challenging times," Magellan's president and chief executive officer, William H. Hastings stated.

"Young Energy Prize's strategic investment is a milestone in an ongoing evaluation process," Walter McCann, Magellan's chairman of the board, added. "The company's management and directors, in consultation with its advisors, reviewed Magellan's strategic options. ... We continue to look at other means of capital expansion necessary to achieve our long-term business strategy. Beyond additional capital this transaction will bring two additional directors to Magellan's board. They have extensive financial, capital market and technical expertise in the oil and gas industry.

"We share a common vision and support a practical strategy to achieve it," McCann continued. "This transaction is a game-changer for Magellan."

Managed Support to raise £6 million

Due to a successful restructuring, Cheshire, England's Managed Support Services has generated positive operating cash flow recently and is looking for acquisition opportunities that would be available at lower prices due to the current depressed market.

As a result, the company seeks to raise £6 million in a private placement of stock. It will sell 75 million ordinary shares at 8p per share.

The company said it has delayed making plans for an acquisition in hopes that the economy would continue to worsen, ensuring a better deal.

It believes that the larger surplus cash balances resulting from the stock sale will make the company an increasingly attractive prospect as a buyer.

The company will, initially, seek smaller acquisitions that offer similar or complementary services to Managed Support Services' existing businesses, such as in electrical testing or water treatment and energy management services. The directors may, however, also consider larger acquisitions in other fields.

"We have increased our surplus cash balances at a time when cash is becoming increasingly scarce. We will now review a broad portfolio of opportunities as the economic climate worsens," chief executive Simon Beart, said in a press release.

Managed Support Services is a building services and maintenance company. Its shares (AIM: MSS) rose 5.9%, or 0.45p, to close at 8.08p Tuesday.

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