Pegasus Wireless wraps $10 million stock sale; Isco International concludes $5 million note issue

By Sheri Kasprzak

New York, June 28 - Pegasus Wireless Corp. led light private placement action on Wednesday, settling a $10 million offering of its stock to its president, Jasper Knabb.

Knabb purchased 1.25 million shares at $8.00 each, a slight premium to the company's $7.97 closing stock price on June 27.

The company had 75,153,859 outstanding common shares as of March 31.

Proceeds from the offering will be used for general corporate purposes as the company prepares to enter the retail market.

"The stock's responding and I think it looks pretty good for them," said one sellside market source who focuses on the tech sector. "They can do significant things with this and their stock will likely benefit over the long-term."

Pegasus' stock gained 1.63%, or 13 cents, to end the session at $8.10 Wednesday (Nasdaq: PGWC).

"I am proud to be a part of such a dedicated team, and feel very strongly about the company's ability to do great things with this funding," said Knabb in a statement released Wednesday afternoon. "Pegasus plans to put the proceeds of this financing to immediate use and I am thrilled to be able to facilitate the growth of such a powerful organization."

Neither Knabb nor Stephan Durland, the company's chief financial officer, returned calls for further comment on the deal by press time Wednesday.

Pegasus reported net income of $229,696 for the quarter ended March 31, compared with a net loss of $334,886 for the same quarter of 2005.

Based in Freemont, Calif., Pegasus develops hardware and software products for wireless communications devices.

Elsewhere in the tech sector, Isco International, Inc. announced the completion of its $5 million private placement of convertible notes with Alexander Finance, LP and Manchester Securities Corp. LP.

The two investors purchased 5% notes due June 22, 2010. The notes are convertible into common shares at $0.33 each.

Connected to the deal, the lenders waived their right under Isco's existing line of credit to receive the financing proceeds from the notes so the proceeds can be used for product development and working capital.

Isco's stock edged up by less than a penny, or 0.76%, to close at $0.33 Wednesday (Amex: ISO).

Based in Elk Grove Village, Ill., Isco supplies radio-frequency management and interference-control systems to the wireless telecommunications sector.

Fortune raises C$7.23 million

In the resources sector in Canada, Fortune Minerals Ltd. completed a C$7,227,750 private placement of flow-through shares. Fortune issued 2,095,000 flow-through shares at C$3.45 each.

The deal was conducted through a syndicate of agents led by Desjardins Securities Inc.

Proceeds will be used for exploration on the company's Mount Klappan anthracite coal deposits in British Columbia and on the Nico gold-cobalt-bismuth deposit in the Northwest Territories.

Located in London, Ont., Fortune is a mineral exploration company.

Unigold's C$4.5 million deal

Looking to gold offerings, Toronto's Unigold Inc. negotiated a C$4.5 million private placement even as gold prices fell.

Unigold's stock, however, jumped by 12.5%, or 6 cents, to settle at C$0.54 (TSX Venture: UGD).

The non-brokered offering includes up to 9 million units of one share and one warrant. Each warrant is exercisable at C$0.75 for one year.

Proceeds from the deal will be used for ongoing exploration on projects in the Dominican Republic.

Meanwhile, gold prices fell for the third-straight session, shrugging off gains from earlier this year. Gold prices slipped $3.40 to end at $581 per ounce.

In other gold news, Hansa Corp. priced a C$1.8 million private placement as part of its acquisition of Minera Azteca de Oro y Plata SA de CV, a private Mexican company.

The placement, which is non-brokered, includes up to 1.2 million units at C$1.50 apiece.

Each unit consists of 10 shares and five warrants. Each warrant is exercisable at C$0.50 each for two years.

Under the terms of the reverse takeover, Hansa will issue 30.5 million shares and two-year warrants for up to 7.5 million additional shares, exercisable at C$0.50 each, at a price of C$0.15 each in exchange for all of Minera's outstanding stock.

The new company will be called Azteca Gold Corp.

Hansa's stock remained unchanged at C$0.23 Wednesday (TSX Venture: HSA).

Calgary, Alta.-based Hansa is a mineral exploration company.

Finally, Oriental Minerals Inc. plans to raise C$1.4 million in a private placement to fund project acquisitions and provide working capital.

The non-brokered deal includes up to 14 million units of one share and one warrant.

The warrants are exercisable at C$0.20 each for 18 months.

Oriental, based in Vancouver, B.C., is a mineral exploration company focused on gold, silver and copper projects in South Korea.

Genelabs stock loses 8%

On Wednesday, Genelabs Technologies, Inc.'s stock lost its gains from Tuesday - and then some - after announcing the pending completion of an $8,974,500 private placement.

The stock gave up 7.95%, or 12 cents, to close at $1.39 (Nasdaq: GNLB) on Wednesday. The company's stock had gained 6.34%, or 9 cents, to end at $1.51 on Tuesday.

A group of institutional and accredited investors have agreed to buy shares at $1.42 each and warrants for 2.5 million shares at an extra $0.125 each.

Located in Redwood City, Calif., Genelabs is a biopharmaceutical company focused on treatments for diseases like hepatitis C and lupus.

Miramar stock slips

Heading to the Canadian secondary market, Miramar Mining Corp.'s stock ended the day off after the company priced a C$15.08 million private placement on Tuesday.

The company's stock fell 9 cents, or 2.2%, to close at C$4.01 (Toronto: MAE) on Wednesday. The drop followed an 8.7% decline the day earlier.

The Miramar offering includes flow-through shares priced at C$5.20 each.

The placement is scheduled to close July 12.

Proceeds will be used for exploration on the company's work program at Hope Bay.

Vancouver, B.C.-based Miramar Mining is a gold exploration company.

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