Private placement issuance grinds to a halt ahead of holiday; Immersion raises $20 million

By Sheri Kasprzak

Atlanta, Dec. 23 - Even as several deals that priced a few weeks ago settled up before the holiday, private placement issuance was sparse Thursday.

"Issuers are not coming out with new deals today," said one market source. "We're seeing a lot of deals that had been out in the market closing. But I haven't seen a lot in terms of new deals."

"There were a few deals that priced today, but they were mostly under $1 million," said another source. "No one is really going to price anything the day before a holiday."

There were some exceptions to that rule in Canada, however.

Trinity Plumas Capital Corp. planned a C$12.75 million offering and Amanta Resources Ltd. announced a C$3 million deal. Logan Metals Inc. also announced its plans to raise C$5 million.

For the most part though, Canadian deals that priced a few weeks ago closed Thursday.

More than 15 companies announced Thursday that they had wrapped up previously announced deals before the market closed for the holiday.

Back in the United States, Immersion Corp. led private placement news with word that it received agreements for $20 million in convertible debentures.

The debentures are convertible into common shares at $7.0265 each, have a five-year term and accrue interest at 5% annually.

Investors in the offering also received warrants for about 427,000 shares at $7.0265 each for five years.

"This financing is an important event on our path to profitability," said Immersion's chief executive officer Victor Viegas in a statement. "The additional cash reserves will ensure that the company can finance growth initiatives, such as our mobility business, and litigation expenses, while we continue to generate the revenue growth necessary to achieve profitability."

Thomas Weisel Partners LLC was the placement agent in the deal.

Immersion, based in San Jose, Calif., develops, license and markets digital touch technology and products.

On Thursday, Immersion's stock closed down $0.16 at $5.91.

Xybernaut raises $10.6 million

Fairfax, Va.-based Xybernaut Corp. closed up a $10,634,167 in a private placement on Dec. 20, the company said Thursday.

The offering included 9,167,386 at $1.16 each to two investors in exchange for cash and the cancellation of $8.5 million in debt.

Warrants were issued in the offering for 4,583,693 shares at $1.16 each for three years and warrants for 4,583,693 shares at $1.16 for six months.

Xybernaut produces a wearable computer designed for industrial settings.

The company's stock closed up $0.021 at $1.281 Thursday.

Visual Data closes $6.5 million deal

Visual Data Corp. closed a $6.5 million private placement.

The company sold $4.35 million in 8% senior secured convertible notes and 215,000 shares of series A-10 convertible preferred stock at $10 each.

The notes include warrants for 1,522,500 shares and the preferred include warrants for 1,075,000 shares exercisable for five years.

Adelphia Capital Inc. was the placement agent in the offering.

Pompano Beach, Fla.-based Visual Data provides video and rich media communication, web casting and digital asset management services. The proceeds from the offering were used for general corporate purposes. The remainder of the funds will be used to complete the development and rollout of the commercial version of the Onstream Media digital asset management platform.

On Thursday, Visual Data's stock closed up $0.27 at $1.52.

Cirnd sells preferreds

Cirond Corp. sold $2 million in a private placement of convertible preferred stock.

Investors bought 2,000 shares of the series B convertible preferreds.

The preferreds, which pay a 5% dividend, may be converted into common shares at $0.43 each.

The deal also included warrants for 2,325,581 shares at $0.55 each and additional investment rights for up to $4 million preferreds and warrants on the same terms.

Ascendiant Securities LLC was the placement agent in the offering.

Based in Burnaby, B.C., Cirond is a wireless networking company. It plans to use the proceeds from the offering for working capital, including consulting, payroll, sales and marketing and some research and development expenses. The remainder of the funds will be used for loan repayment and public relations.

On Thursday, the company's stock closed unchanged at $0.55.

Lyrtech gets equity line

Lyrtech Inc. received a $2 million standby equity distribution agreement from Nite Capital LP.

Nite will buy shares based on 90% of the volume-weighted average trading price for 10 consecutive trading days after the request.

The agreement expires in two years and there is a $150,000 ceiling on each request.

The investor will also receive 101,010 class A shares at C$0.396 each, representing a commitment fee of $40,000.

Havenwood Capital Markets LLC was the placement agent in the transaction.

"This facility represents one component of the overall long-term funding strategy of Lyrtech, which is to enable access to small amounts of capital, if and when required, over multiple draw-downs, thus minimizing dilution to shareholders," said Lyrtech's chief financial officer Vincent Belanger in a statement.

Lyrtech, based in Quebec City, is a digital signal processing technology company. The financing will provide the company with access to capital for its current and planned operations.

Lyrtech's stock closed down C$0.01 at C$0.43 Thursday.

Summus raises $1.425 million

Summus Inc. received agreements for its $1,425,000 in senior convertible notes.

The notes bear interest at 12% annually and mature the earlier of May 15, 2005 or the closing of an equity or equity-linked financing for more than $3 million.

The investors in the offering will not be able to convert the notes until the maturity date.

Investors in the offering will receive five-year warrants for 2,794,118 shares at the lesser of $0.56 each or 110% of the average closing prices for five trading days after maturity. The strike price of the warrants has a $0.38 floor.

Summus, based in Raleigh, N.C., develops products for personalizing cell phones.

The company's stock closed down $0.135 at $0.54 Thursday.

Canadian deals

In Canada, Saxon Energy Services Inc. led action with its closed private placement for C$38,508,450.

The company sold 12,836,150 subscription receipts at C$3 each.

The receipts include one share and one half-share warrant.

The whole warrants allow for an additional share at C$3.75 each for 18 months.

The offering was upsized from an originally announced C$36.3 million deal.

The private placement was conducted through an underwriting syndicate led by Westwind Partners Inc. and Sprott Securities Inc.

"With the closing of this financing, Saxon can proceed with its long-range plans to expand the company's rig fleet and to access further growth opportunities," said Saxon's chief executive officer Walter Dawson, in a statement.

Saxon is a Calgary, Alta.-based oil and gas drilling, servicing and equipment renting business, which operates in Ecuador. The company plans to use the proceeds from the deal to acquire a Venezuelan oil and gas company for additional drilling rigs and rental equipment. The remainder of the funds will be used for general corporate purposes.

The company's stock closed unchanged at C$3 Thursday.

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