By then, Endeavour Financial Corp., an independent merchant banking company focused on the global natural resources sector, will be able to report whether it has been successful in raising capital in what have been, and are expected to continue to be, very difficult markets.

The company, whose head office is in Grand Cayman and whose shares are listed on the TSX, wants to raise equity via the sale of units with each unit consisting of a common share plus half a share-purchase warrant. The warrant runs for five years.

If it is successful this time and does reach the target of up to $100-million, Endeavour plans to use the proceeds to make investments in the natural resource sector. Endeavour offers a variety of advisory services as well as equity and bridge loans in support of clients, transactions and other market opportunities.

According to Bloomberg, Endeavour Financial has never raised capital. However, a related company, Endeavour Mining Capital Corp., tried to raise capital in 2006. (Last year, Endeavour Mining bought Endeavour Financial and changed the named of the merged entity to Endeavour Financial.)

In May, 2006, it filed a short-form prospectus to sell units. One month later, it announced that it had postponed the offering. Back then, book value was US$7.95 or $8.88 a share. On Friday, the units closed at $1.58.

The proposed offering is being launched after a flurry of activity at Endeavour. For instance:

-About six weeks ago, it underwent an executive shakeup where Frank Holmes, its non-executive chairman, left. Holmes, who had been in that slot since October, 2005, was replaced by Michael Beckett. Apart from being a senior executive, Holmes' company, U. S. Global Advisors, was also replaced as Endeavour Financial's equity investment advisor, a mandate that meant it "manage[d] the corporation's resource investments."

At the time, Endeavour said the change in the status of U. S. Global Advisors occurred because "as a result of our evolving business model, we are now better positioned to actively manage our strategic resource investments internally; our capital is deployed primarily within advisory-based, client companies of Endeavour."

-In the same week that the prospectus was filed, Gold Reserve Inc. filed an action against Endeavour Financial International Corp. and Rusoro Mining Ltd. That action "sought an injunction restraining Rusoro and Endeavour from proceeding with the unsolicited offer, significant monetary damages, and various other items."

That action was prompted by the news that Vancouver-based Rusoro offered three of its shares for each Gold Reserve class A share or equity unit.

-About five weeks ago, Endeavour reported its financial results for the quarter ended Sept. 30. They weren't pretty: a net loss of US$130.8-million, or US$4.31 per share, versus a net loss of US$0.2-million one year earlier. "The loss during the quarter is principally driven by a US$127.7-million unrealized adjustment in the value of the corporation's investments, as a result of mark-to-market accounting practices, it said. At the end of the quarter, its book value was $8.31 a share versus $12.31 three months earlier.

bcritchley@nationalpost.com