Southern Sauce pockets $15 million; nFinanSe sees C$10.71 million; Geoinformatics plans C$25 million

By Devika Patel

Knoxville, Tenn., June 12 - Southern Sauce Co., Inc. raised $15 million by selling its series A convertible preferred stock with warrants, nFinanSe Inc. completed a $10.71 million deal, which the company will use to pursue market share, and Geoinformatics Exploration Inc. agreed to raise C$25 million in a stock sale, which priced after the close on Wednesday.

Southern Sauce wraps $15 million deal

China's Southern Sauce completed a $15 million private placement of units of its series A convertible preferred stock and warrants, which it sold at $2.5357 apiece.

The preferreds are convertible into 5,915,526 common shares, while the warrants, for 7,098,632 common shares, are exercisable at $3.52 for five years.

The company also completed an acquisition of Shen Kun International Ltd., which, through Shengkai (Tianjin) Ceramic Valves Co., Ltd., designs, manufactures and sells ceramic valves.

"The closing of our merger transaction and financing provide us with the capital investment we need to accelerate the growth of Shengkai's business," the company's chief executive officer Wang Chen said in a press release.

"We plan to use the proceeds from the financing towards the expansion of our existing production capacity as we work to meet the growing demand for our products. We also plan to use the funds towards the research and development of new ceramic products."

The Tianjin, China-based company's shares (OTCBB: SOSA) jumped 37.84%, or $0.70, to close at $2.55 on Thursday.

nFinanSe settles $10.71 million sale

nFinanSe sold common stock and preferred stock for $10.71 million.

The Bradenton, Fla.-based financial services company engaged agents Collins Stewart LLC and Emerging Growth Equities, Ltd. to sell 1,417,500 common shares and 3,937,500 series C convertible preferred shares at $2.00 apiece, along with warrants for 2,677,500 shares, which are exercisable at $2.30.

"The prepaid card industry is a rapidly growing and very dynamic sector of the U.S. economy," chairman and chief executive officer Jerry R. Welch said in a press release."

"This financing, which will provide the company with over $26 million of capital, enhances our financial condition, strengthens our balance sheet and helps position us to aggressively pursue market share in the prepaid card marketplace."

The company provides stored value and prepaid cards. Its shares (OTCBB: NFSE) rose 4.17% Thursday, or $0.10, to close at $2.50.

Geoinformatics negotiates C$25 million

Geoinformatics said after the close on Wednesday that it will raise C$25 million through a private placement of 156,250,000 common shares at C$0.16 apiece.

It plans to sell the shares to Geologic Resource Partners LLC and use the proceeds to repay the principal of its $20 million in outstanding secured debentures, which are held by Geologic Resource, to advance its key resource projects and for working capital.

"Completion of the Geologic Resource financing will significantly strengthen Geoinformatics' balance sheet, eliminate C$1 million in annual debt service charges and put us on a sound financial footing so that we can continue to advance our principal projects," Geoinformatics' chairman Kevin L. Snook said in a press release.

"The board of directors has considered various options to improve the company's capital structure and fund our exploration programs, including a shareholder rights offering, but concluded that this placement would be the most effective way to advance the company's interests and we are pleased to have Geologic Resource's continued support."

The Toronto-based mineral exploration company's shares (TSX Venture: GXL) sank 7.14%, or C$0.01, to close at C$0.13 on Thursday. Its shares closed at C$0.14 on Wednesday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.