Security Bank sells $40 million of notes with warrants; Aker BioMarine gets NOK 400 million

By Laura Lutz

Des Moines, April 29 - Aker BioMarine continued Norway's run in the PIPEs news with an announcement of a NOK 400 million convertible loan.

In the United States, Security Bank Corp. and Neurologix, Inc. wrapped deals for $40 million and $5 million, respectively.

Security Bank sold notes along with stock appreciation rights and warrants, and Neurologix sold convertible preferreds.

Lero Gold Corp. said its planned offering of shares was upsized to C$60 million from C$40 million.

Finally, Gulfasnds Petroleum plc priced a £9.35 million private placement of shares.

Aker BioMarine gets loan

Aker BioMarine said it secured a three-year subordinate convertible loan from Aker ASA for NOK 400 million.

The loan carries an 8.25% coupon. Rather than paying interest on a running basis, Aker BioMarine will pay both principal and interest at maturity.

The conversion price is NOK 29.78 per share.

Based in Oslo, Norway, Aker BioMarine is an agriculture company which develops nutraceutical, dietary supplements and functional foods.

Aker BioMarine said the loan will provide financial clout for its targeting of international growth markets and the company's further development.

"Aker BioMarine is raising capital for aggressive market advances. We intend to be the shaper of the biomarine industry," Helge Midttun, Aker BioMarine's president and chief executive officer, said in a news release.

Its stock lost NOK 0.70, or 4.12%, to close at NOK 16.30 on Tuesday (Oslo: AKBM).

Security Bank raises $40 million

Security Bank said it sold $40 million of subordinated notes to private equity funds managed by FSI Group, LLC.

The notes carry a 9.5% coupon and mature in 2018. They are callable in five years.

FSI Group also received a combination of stock appreciation rights and warrants to purchase common shares.

Security Bank is a Macon, Ga., multi-bank holding company that provides lending services, including real estate.

It said it will use some of the proceeds to retire holding company debt and the rest for general corporate purposes.

"We are extremely pleased to have FSI Group, a premier private investment firm specializing in financial institutions, show its long-term support for Security Bank with this investment," Rett Walker, Security Bank president and chief executive officer, said in a news release.

"So far in 2008, we have raised over $68 million of capital in two separate offerings, reduced our dividend and have implemented an aggressive plan to reduce non-interest expenses in order to build capital to support our balance sheet and enhance Security Bank's value long term for our shareholders," Walker continued.

Steven N. Stein, chairman of FSI, also expressed satisfaction with the deal.

"FSI looks forward to a prosperous relationship with Security Bank. We believe that Security Bank has the management expertise and now has the resources to navigate through this difficult credit cycle," Stein said in the news release.

Security Bank's stock gained 41 cents, or 5.47%, to close at $7.90 on Tuesday before losing 15 cents in after-hours trading (Nasdaq: SBKC).

Neurologix sells $5 million

Neurologix said it sold $5 million of its series D convertible preferred stock to Corriente Master Fund, LP for $35.00 per preferred share.

Corriente also received warrants for approximately 1,077,586 common shares, exercisable at $1.39 per share for seven years.

Each series D preferred share bears a 7% dividend and is convertible into 30.17 shares of common stock.

Located in Fort Lee, N.J., Neurologix is a research and development company focused on treatments for brain and central nervous system disorders.

It plans to use some of the proceeds to finance further clinical development of its gene transfer technology. The rest will be used for general corporate purposes.

Corriente has also bought Neurologix's preferreds in earlier deals. Most recently, Corriente was one of two investors in a $15 million private placement of series D convertible preferreds that closed in November 2007.

"This additional financing is a direct reflection of the progress the company has made to date as well as Corriente's confidence in our ability to deliver on our development milestones," John Mordock, Neurologix's president and chief executive officer, said in a news release.

"These funds, along with the $15 million raised in November, provide the company with over $22 million to use towards completing that trial and taking the necessary steps to advance our Parkinson's indication toward commercialization, including further development of our manufacturing process, regulatory preparation for an anticipated phase 3 pivotal trial, and building additional supporting infrastructure," he continued.

The company's stock lost 10 cents, or 11.76%, to close at $0.75 on Tuesday (OTCBB: NRGX).

Lero deal lifted to C$60 million

Lero Gold said its private placement of shares was increased to C$60 million by agent Canaccord Adams.

The deal priced on April 18 as a C$40 million offering with a 15% greenshoe and an additional option to increase the deal size by C$20 million.

After the upsizing, the deal consists of 70,588,235 common shares at C$0.85 each.

Vancouver, B.C.-based Lero, formerly ELE Capital Corp., is a new base and precious metals exploration company.

It plans to use some of the proceeds to fund a C$25 million loan to European Minerals Corp. in connection with European Minerals' acquisition of Lero's outstanding shares, which was announced Friday. The rest will be used for exploration, drilling, working capital and potential acquisitions.

The company's stock closed unchanged at C$0.90 on Tuesday (TSX Venture: LER).

Gulfsands prices shares

Gulfsands plans to sell 5.5 million shares for total proceeds of £9.35 million, a price per share of 170p.

Affiliated investment funds of Och Ziff Capital Management Group will buy the shares.

The London-based oil and gas production, exploration and development company said it will use the proceeds for general corporate purposes with an emphasis on its activities in Iraq.

"'I am delighted to welcome Och Ziff as a major shareholder and potential strategic partner. They are one of the world's pre-eminent alternative investment groups, with outstanding credentials," Andrew West, Gulfsands' chairman, said in a news release.

The company's shares lost 1.5p, or 0.93%, to close at 160p on Tuesday (London: GPX).

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