New Dynamic proposes $10 million PIPE; Canadian volume increases

By Sheri Kasprzak

New York, Jan. 24 - New Dynamic Marketing, Inc. led light private placement activity Tuesday, announcing its plans to raise $10 million through Fountain Capital Fund, Inc.

The full terms of the offering had not been determined by press time Tuesday, but New Dynamic intends to use the proceeds to roll out products like its virtual kiosk and real-time testing and tracking technologies.

"I am excited to have selected Fountain Capital Fund, Inc. to raise $10 million for New Dynamic Marketing, Inc.," said Lee Schwuchow, the company's president, in a statement. "The company will take sales to a new level and increase revenue up to $6 million or more."

"As one of the original founders, I have watched over the years and seen this company consistently cash flow positive and I believe this raise could provide capital for tremendous growth in a sector which leverages heavily on its relationship with Google," said Garland Harris, president of Fountain Capital, in a statement.

Based in Fort Lauderdale, Fla., New Dynamic is an internet-based company that develops front- and back-office internet integration software.

On Tuesday, the company's stock remained unchanged at $0.54 (Pink Sheets: NDYM).

Elsewhere, U.S. PIPE activity remained very light, sellsiders said, even as stocks made slight gains and oil prices slipped.

"There's just absolutely nothing going on today," noted one market source on the West Coast. "I can't really see anything [impacting volume]."

The Dow Jones Industrial Average gained 23.45 to close at 10,712.22, the Nasdaq composite index ended the day up 16.78 to close at 2,265.25, and the Standard & Poor's 500 composite index edged up 3.04 to settle at 1,266.86.

However, in Canada PIPE volume took off, with several large offerings coming to market.

One market source in Vancouver, B.C., said activity in Canada will continue to be strong as long as commodities remain strong. By those standards, activity may drop off since oil prices lost $1.04 to close at $67.06 per barrel Tuesday. Also, gold prices slipped $0.50 to close at $557.90 per ounce.

SR Telecom to raise C$50 million

Leading all of that Canadian activity Tuesday was a C$50 million stock offering priced by SR Telecom Inc.

After the deal was announced early Tuesday afternoon, SR Telecom's stock lost 15.91%, or C$0.035, to end at C$0.185 (Toronto: SRX).

The company intends to sell 333,333,333 shares at C$0.15, a 21.1% discount to the average market price of the company's stock over five trading days.

Along with the stock deal, funds and accounts managed by DDJ Capital Management, LLC agreed to convert C$58 million in debentures. The debentures are convertible at C$0.217 each.

The conversion and the placement are scheduled to close Feb. 1.

Proceeds will be used for working capital.

"This is a clear and strong endorsement of the technology and business plans we have developed for SR Telecom," said William Aziz, the company's interim chief executive officer, in a statement. "Our advanced WiMAX and pre-WiMAX technologies will now be available to major existing and potential customers from a business that is viable, stable and has an appropriate capital structure."

"The infusion of C$50 million of new capital and the conversion of C$58 million principal amount of convertible debentures into common shares will enable the company to fund its turnaround and pursue new growth opportunities," said Lionel Hurtubise, SR Telecom's chairman, in a statement.

SR Telecom, based in Montreal, designs broadband fixed wireless access technologies used by telephone and internet service providers.

Galleon to raise C$40.12 million

Looking to the natural resources sector, Galleon Energy Inc. plans to raise C$40,012,500 from the sale of 1.65 million class A shares. The shares are priced at C$24.25 each.

The deal is being placed through a syndicate of underwriters led by GMP Securities LP. The syndicate has an over-allotment option for up to 620,000 additional shares.

The deal is slated to close on Feb. 14.

The company's stock lost C$0.05 to end the day at C$25.30 Tuesday (Toronto: GO).

Proceeds will be used for the company's 2006 capital expenditure program. The company's 2006 budget is set at between C$50 million and C$55 million.

Based in Calgary, Alta., Galleon is an oil and natural gas exploration company.

Elsewhere in the sector, AfriOre Ltd. negotiated a C$20,057,500 stock offering through agents Westwind Partners Inc. and Canaccord Capital Corp. The company intends to sell 5.65 million shares at C$3.55 each. The agents have a greenshoe for up to 570,000 shares.

The deal is slated to close Feb. 9.

Proceeds will be used for exploration on the company's mineral projects and for general corporate purposes.

AfriOre's stock gained 1 cent to close at C$3.69 Tuesday (Toronto: AFO).

Based in Road Town, Tortola, British Virgin Islands, AfriOre is a gold and platinum exploration company.

CanArgo stock makes slight gains

A day after announcing a proposed $13 million PIPE, CanArgo Energy Corp.'s stock settled up Tuesday.

The stock rose 2 cents Tuesday to close at $1.43 after gaining 2.92% on Monday (AMEX: CNR).

On Monday, CanArgo said it is gearing up to sell $13 million in subordinated convertible guaranteed loan notes. The notes are convertible into common shares at $1.37 each.

An oil explorer, however, led private placement offerings Monday with a $13 million offering of subordinated convertible guaranteed loan notes.

The deal is slated to close in mid-February.

Based in New York, CanArgo is an oil and natural gas exploration company.

Underground Solutions stock closes up

After sustaining losses for two straight sessions, Underground Solutions, Inc.'s stock finally made some gains on Tuesday.

The company's stock advanced 2 cents, or 3.92%, to close at $0.53 (Pink Sheets: UGSI).

On Monday, the company's stock fell 10.53% and on Friday the company's stock fell 14.93%.

Underground Solutions closed an $18.8 million private placement Thursday. On Thursday, the company's stock gained 11.67%, or 7 cents, to close at $0.67.

In the private placement, the company issued shares at $0.08 apiece to Wynnefield Partners Small Capital Value, LP I; The Water Fund, LP; and DHW Water Partners.

Based in Poway, Calif., Underground Solutions develops underground infrastructure and pipeline rehabilitation methods.

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