TransTechnology settles $18.75 million deal; American CareSource raises $7.3 million in stock offering

By Sheri Kasprzak

New York, Feb. 17 - TransTechnology Corp. led a rather large slate of PIPE offerings Friday to close out the week, sealing an $18.75 million stock deal with Tinicum Capital Partners II, LP and some of its affiliates.

The company sold 2.5 million shares at $7.50 apiece to the institutions through placement agent Wells Fargo Securities, LLC.

TransTechnology reported a total of 6,725,718 outstanding common shares as of Feb. 3.

Proceeds from the deal will be used for debt repayment and other general corporate purposes.

The offering was announced late in the day Friday, sending the company's stock up slightly. The stock gained 5 cents, or 0.71%, to finish at $7.05 (Pink Sheets: TTLG).

"We are very pleased to announce this re-capitalization of the company, which will have the immediate effect of improving our balance sheet and cash flow," said Robert White, the company's president and chief executive officer, in a statement released Friday afternoon. "Furthermore, based upon our analysis and that of our advisors, we believe that this re-capitalization should be accretive to earnings per share.

"We also believe that our competitive position as perceived by our customers, employees and suppliers will be enhanced by this development and that we can now take steps to move the company to a more formal trading venue for our shares which should improve their liquidity and attractiveness to investors."

Looking to the company's earnings, TransTechnology reported net income of $387,000 for the quarter ended Dec. 31, 2005, compared with a net loss of $1,268,000 for the same quarter of 2004.

Union, N.J.-based TransTechnology operates under the name Breeze-Easter and designs lifting devices for military and civilian aircraft.

Elsewhere, American CareSource Holdings, Inc. continued the trend of biotech companies in the PIPE market Friday, settling a $7.3 million offering of shares.

The company sold 1.46 million shares to institutional and accredited investors at $5.00 each.

The offering lifted the company's stock slightly, with the stock advancing 5 cents, or 0.88%, to close at $5.75 (OTCBB: ACSH).

Proceeds will be used for debt repayment and working capital.

Based in Irving, Texas, American CareSource is a health care benefits management firm.

SYS raises $6.25 million

Moving back to the tech sector, SYS Technologies, Inc. wrapped a $6.25 million unit deal Friday.

The company sold 1,736,111 units at $3.60 each to institutional and individual investors as well as insiders of the company. Each of the units includes 6,944 shares and $25,000 in principal of 10% unsecured subordinated convertible notes.

The three-year notes are convertible into common shares at $3.60 each.

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

"I am very pleased in the confidence our existing and new investors have shown in our growth and diversification plan," said Cliff Cooke, the company's CEO, in a statement. "This round of financing will enable us to continue growing and diversifying our business while making the investments in research and development and sales and marketing that are required at this stage of our growth. We are excited about the opportunities that lie ahead and are confident that our strategy of integrating technologies from our various business units results in unique solutions for our current and targeted customer base."

Based in San Diego, SYS manufactures information and communications systems for the U.S. departments of Defense and Homeland Security as well as industrial markets.

The stock gained 3 cents, or 0.85%, to close at $3.56 Friday (Amex: SYS).

Access's $5 million note offering

Looking to the rather active biotech sector, Access Pharmaceuticals, Inc. closed a $5 million offering of 7.5% convertible notes due March 31, 2007.

The notes are convertible into common shares at $0.22 each.

The investors received warrants for a number of shares equal to 75% of the total shares issuable upon conversion. The warrants are exercisable at $0.26 each for six years.

SCO Capital was the placement agent.

Proceeds will be used for the clinical development of the company's AP5346 product for cancer.

On Friday, the company also announced that its board of directors approved a 1-for-5 stock split.

News of the note and the pending stock split sent Access's stock down a bit Friday, with it losing a penny, or 4.76%, to settle at $0.20 (Pink Sheets: AKCA).

Dallas-based Access is a pharmaceutical company focused on treatments for cancer.

Caprius wraps $3 million preferreds

In other health care-related news, Caprius, Inc. settled a $2,999,970 offering of series D convertible preferreds Friday.

The offering included 241,933 preferreds at $12.40 each, sold to two institutions. The preferreds are initially convertible into 2,419,330 common shares at $1.24 each. The investors received series A warrants for 223,881 shares, exercisable at $1.50 each for five years and series B warrants for 447,764 shares, exercisable at $2.00 each for five years.

Carter Securities, LLC and Laidlaw & Co. (UK) Ltd. were the placement agents.

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

"We believe that this transaction provides us with the additional resources to scale-up our business as we roll out our economic and efficient onsite SteriMed Systems into the marketplace," said George Aaron, the company's CEO, in a statement.

The stock lost 1 cent to close Friday at $1.60 (OTCBB: CAPS).

Based in Hackensack, N.J., Caprius makes equipment used to dispose of infectious medical waste.

Northern Mining's C$5.91 million PIPE

In Canada, Northern Mining Explorations Ltd. led light private placement activity, settling a C$5,913,501 unit deal.

The company issued 7,884,668 units of one share and one half-share warrant. The units were sold a C$0.75 each. Each whole warrant is exercisable at C$1.00 each through Jan. 14, 2009.

The deal was placed through a syndicate of agents led by Haywood Securities Inc.

Proceeds will be used for exploration on the company's projects in Tanzania and Eritrea as well as for working capital.

The company's stock gained 6.35%, or 4 cents, to close at C$0.67 (Toronto: MDN).

Based in Montreal, Northern Mining is a mineral exploration company.

Idaho General Mines' stock gains 10%

Idaho General Mines, Inc.'s stock advanced 10% on Friday after the company settled a $30 million unit deal on Thursday.

The company's stock climbed 30 cents to close at $3.30 Friday (OTCBB: IMGI).

After the company completed the placement, its stock had dropped 6.83%.

In the private placement, Idaho General sold units of one share and one half-share warrant at $2.00 each.

Proceeds will be used for permitting and engineering on the company's Mount Hope molybdenum project in Nevada.

Based in Spokane, Wash., Idaho General Mines is a mineral exploration company.

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