Euronet Worldwide secures $159.4 million from stock sale; Solar Enertech raises $8.3 million

By Sheri Kasprzak

New York, March 8 - Euronet Worldwide, Inc. is gearing up to wrap a $159,363,200 private placement, the company announced Thursday. Meanwhile, as the stock market rebounded, PIPE volume will rebound as well, according to one sellsider.

"I think we'll be OK," he said. "Already, we're seeing more stuff here and there. [There] definitely was a drop in activity for a while earlier this week."

The Dow Jones Industrial Averaged gained 68.25 to close at 12,260.70, the Nasdaq composite index climbed 13.09 to end at 2,387.73 and the Standard & Poor's 500 composite index edged up 9.92 to close at 1,401.89.

Leading activity on Thursday was the Euronet offering, which includes 6,374,528 shares at $25.00 each.

A group of institutional investors plans to buy the shares by March 12.

Proceeds will be used for future acquisitions and for general corporate purposes. The company is considering an acquisition target that would represent a significant acquisition for the company, according to a statement released Thursday.

Banc of America Securities LLC is the placement agent.

The company's stock ended the day down 3.54%, or 96 cents, to close at $26.15, giving up another 4 cents in after-hours trading (Nasdaq: EEFT). The stock had given up 43 cents by 11:50 a.m. ET.

Based in Leawood, Kan., Euronet is an electronic transaction processing services company.

Solar Enertech's $8.3 million deal

Elsewhere in the tech sector, Solar Enertech Corp. sealed a private placement of series A and B convertible notes for $8.3 million.

The company sold $5 million in series A notes and $3.3 million in series B notes.

The A notes bear interest at 6% annually, are due March 7, 2010 and are convertible into common shares at $0.69 each.

The B notes bear interest at 6% annually, are due March 7, 2010 and are convertible into common shares at $0.57 each.

The company's stock gained 4 cents, or 3.81%, to close at $1.09 (OTCBB: SOEN) Thursday.

The institutional investors in the deal also receive series A warrants for 7,246,377 shares and series B warrants for 5,789,474 shares. The A warrants are exercisable at $1.21 each and the B warrants at $0.90 each; both warrants expire in five years.

Knight Capital Markets, LLC was the placement agent.

Proceeds will be used for working capital and general corporate purposes.

"This direct investment in Solar Enertech enables the company to fulfill on its recent purchase orders and begin construction of the second 25 Mw production line," said chief executive officer Leo Shi Young in a statement. "We believe that the net proceeds that the company has received from this financing will help the company to execute on its business plan and accelerate the growth of its business."

Based in Menlo Park, Calif., Solar Enertech is a photovoltaic solar energy cell production company.

Empire raises $10 million

Elsewhere in PIPE news, Empire Financial Holding Co. negotiated a $10 million offering of units.

The deal includes $9 million in 6.5% convertible debentures and $1 million in common stock.

The five-year debentures are convertible at $2.39 each.

The offering also includes 418,410 common shares at $2.39 each. Investors will also receive warrants for 418,410 shares, exercisable at $2.62 each for five years.

William Blair & co. is the placement agent.

Proceeds will be used for continuing expansion.

The company's stock remained unchanged at $2.50 Thursday (Amex: EFH).

Based in Longwood, Fla., Empire is a holding company for Empire Financial Group, Inc. and Jesup & Lamont, retail brokerage services.

Granite City's $14 million deal

In other PIPE news, Granite City Food & Brewery Ltd. wrapped up a private placement of stock for $14,002,737.

The company sold 2,617,334 shares at $5.35 each.

KeyBanc Capital Markets and Craig-Hallum Capital Group LLC were the placement agents.

Proceeds will be used for working capital and for the retirement of equipment lease debt.

The company completed similar offerings in October 2005 and in November 2004.

In the 2005 offering, the company sold 1,108,844 shares at $4.8165 each, and in the 2004 offering, the company sold 2,022,253 shares at $3.25 each.

Based in Minneapolis, Granite City operates a chain of restaurants.

Oilsands Quest stock rises

A day after closing the first tranche of a planned C$30.048 million private placement, Oilsands Quest Inc., formerly known as CanWest Petroleum Corp., saw its stock climb by 4 cents on Thursday.

The stock gained 1.14% to end at $3.54 and gained another 4 cents in after-hours trading (Amex: BQI). On Wednesday, the stock jumped 28 cents, or 8.7%, to close at $3.50 after the placement was announced.

The company intends to sell flow-through shares at C$5.64 each. So far, the company has sold 3,097,534 shares. The rest will be sold on May 6.

Calgary, Alta.-based Oilsands is an oil sands exploration company focused on properties in Saskatchewan and Alberta.

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