plus a commitment tocarry their joint venture partner on the first USD 5.3m of costs. The block hasa current production of 416 barrels of oil per day (bopd), proved reserves of1,194 Mbbls and 2P of 2,277 Mbbls. As of 6 March, the company reportedproduction of 22,461 bopd, a drop of almost 15% from 3Q12.The market hasreacted negatively to the news so far and, as of 12:40 PM EST, Petromineralesshares have dropped almost 10% to CAD 5.85/share. The stock shot up more than16% on Friday (3 May) due to rumors of a significant announcement at theupcoming shareholder meeting on that day. The main driver for concern is thatthe asset is simply not big enough, with others fearing a looming bondmaturity.This companyhas CAD 200m of debt due in August and investors have been asking them toconserve cash and cut their dividend," said an investment banker."The last thing anybody expected is for them to go out and spend more cashon an acquisition. As of year-end 2012, Petrominerales had USD 198.3moutstanding on its CAD-denominated 2.625% 2016 senior unsecured convertiblebonds puttable in August at a conversion price of CAD 34.746 per share. Thecompany also reported a cash balance of USD 40.5m and announced the closing of areserves-based credit facility with a borrowing base of USD 250m.One localinvestor, however, said he thought the company purchased a solid prospectiveasset at a fair value and with significant upside. Production numbers are lowat the moment due to a number of technical issues. Yet with all the licenses todrill in place, Petrominerales could boost production numbers in the shortterm, the investor added.But overall,no news would have been better than small news, according to buyside sources.The market was also caught off guard. Prior to any sort of renewed M&Aactivity, there were expectations of some sort of announcement involving thecompanys 5% stake in the OCENSA pipeline, which it had openly discussed withshareholders as an asset it was willing to sell or monetize to bolster itsfunds.SourceProprietary Intelligence.Farmacias Ahumada plans capital increase to pay down debt, fund growth New and recently updated deals: Farmacias Ahumada (FASA: CI) will approachshareholders about a USD 381m capital increase later this month. The company, aChilean pharmaceutical chain, has set a shareholder meeting for 17 May toconsider the transaction, according to a filing with the local SVS. Ahumadaplans to sell around 670m new shares and current holders will have preferentialrights to participate in the deal. Proceeds from the transaction will be usedto pay down debt and finance the companys growth. Ahumada operates a chain ofpharmacies in Chile and Peru. It offers a variety of products and services inhealth care, hygiene and personal care. The company also has subsidiaries thatoffer credit cards and operates the Boticas Fasa pharmacies in Peru. Ahumada isthe second Chilean pharmaceutical chain to plan an equity deal. Peer CFRPharmaceuticals (CFR: CI) announced plans earlier this year to raise up to USD190m through the sale of 725m new shares to fund growth.SourceProprietary Intelligence. BioVerde BioVerde, a privately held Brazilian biodiesel andbiochemical company, may go public in 2013, CEO Ailton Domingues said. BioVerdeneeds to raise capital to support its expansion.