Green Plains wraps up placement, merger; FKP sells strategic stake; Adamus closes deal; Alexco plans sale

By Kenneth Lim

Boston, Oct. 15 - Green Plains Renewable Energy, Inc. said it placed $60 million of stock as part of its merger with VBV LLC.

FKP Property Group is offering A$28 million of stapled securities to Stockland Corp. Ltd. that is expected to strengthen its balance sheet.

Adamus Resourced Ltd. closed a A$1.02 million stock placement to a single private equity fund for its Ghana project.

Alexco Resource Corp. announced a C$5 million offering of flow-through shares that it intends to use for exploration.

Green Plains completes deals

Green Plains said it completed a $60 million private stock placement to shareholders of VBV in conjunction with a merger between the two companies.

Green Plains sold 6 million common shares at $10 apiece to Bioverda International Holdings Ltd. and Bioverda US Holdings LLC. The new Green Plains common stock, which trades temporarily under the symbol GPRED on Nasdaq, closed at $5.99 on Wednesday, up $0.54 or 10%.

Bioverda International bought $52.34 million of the shares and Bioverda US bought $$7.66 million.

Based in Las Vegas, Green Plains operates ethanol production facilities.

The placement took place concurrently with Green Plains' merger with VBV, which was carried out through a stock swap. The placement will give the Bioverda companies the right to nominate four of Green Plains' nine directors.

"We are excited to close this merger with VBV," Green Plains chief executive Wayne Hoovestol said in a statement. "As a result, Green Plains triples its operating capacity. After VBV is fully integrated, the combined organization expects to achieve improved efficiency levels and lower costs of production. In addition, we now have a strong balance sheet to pursue new opportunities for strategic growth."

VBV chief executive Todd Becker added: "We are proud to be a part of Green Plains. The additional investment by VBV's equity holders demonstrates their commitment to the industry and the company."

FKP to raise A$28 million

FKP Property said it is selling A$28 million of stapled securities to Stockland as part of a new strategic relationship between the two parties.

Stockland will buy 14 million securities, or a 5% equity stake, at A$2 apiece. FKP common stock (ASX: FKP) closed at A$0.945 on Wednesday, lower by 24.7% or A$0.31. The placement price is a 33% premium to FKP's Oct. 10 closing price.

The company said the proceeds will be used to strengthen its balance sheet and reduce gearing.

FKP is a real estate development company based in Brisbane, Australia.

FKP will also conduct an accelerated non-renounceable entitlement offer to existing shareholders in hopes of raising up to A$150 million. FKP will offer five new securities for every 14 held at A$1.50 per security, which will result in about 100 million new securities.

Mulpha Australia Ltd., FKP's largest holder, has committed to subscribing for 35 million securities, while Stockland has committed to taking 34 million securities, a total of about A$104 million. The amount allocated to the two shareholders could be reduced depending on overall subscription levels.

Stockland's chief executive, Denis Hickey, was appointed to FKP's board as part of the placement. FKP will also conduct a strategic review to explore further opportunities with Stockland.

"This partnership with Stockland reflects the underlying value of FKP and the quality of our assets and businesses," said FKP managing director and chief executive Peter Brown in a statement. "FKP and Stockland have made a strong commitment to work together and we welcome them as a major investor in FKP."

Stockland managing director Matthew Quinn added: "We are delighted with our investment in

FKP, which we think will provide a number of partnering opportunities and transactions for both groups. FKP's business has a number of similarities with Stockland's and we look forward to exploring ways our groups can work together."

Adamus completes placement

Adamus said it placed A$1.02 million of its common shares with Resource Capital Funds.

The deal, which priced Oct. 8, comprised 3.4 million shares at A$0.30 per share. Adamus common stock (ASX: ADU) was unchanged Wednesday at A$0.25.

Resource Capital is a Denver-based private equity manager that focuses on mining companies.

Proceeds will be used for exploration and development at Adamus' Southern Ashanti Gold project in Ghana and general working capital.

Adamus is a mineral exploration company based in Perth, Australia.

Alexco to raise C$5 million

Alexco announced a C$5 million flow-through equity fundraising exercise.

The company will place out up to 2.5 million flow-through common shares at C$2 apiece. Alexco common stock (TSX: AXR) closed unchanged at C$1.79 on Wednesday.

There is an over-allotment option for a further C$1 million.

Alexco, a Vancouver, B.C.-based mining company, said the proceeds will be used for expenses primarily in relation to its silver, lead and zinc properties in the Yukon territory.

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