Composite Technology raises $20 million from units sale; Acusphere to raise $20 million

By Sheri Kasprzak

New York, June 12 - Heading up PIPE action on Tuesday was a $20 million offering of units from Composite Technology Corp.

The company sold 20,202,020 units at $0.99 each to a group of institutional investors. The units include one share and one quarter-share warrant. The whole warrants are exercisable at $1.40 each for three years.

On Tuesday, the company's stock fell 7 cents, or 5.51%, to end at $1.20 (OTCBB: CPTC).

CapStone Investments was the placement agent.

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

Based in Irvine, Calif., Composite Technology manufactures high-performance electrical transmission and renewable energy generation products.

In the broader market, a sellside source said he feels that recent drops in the stock market may be impacting the larger PIPE market.

"It's a slow season anyway," he noted. "But I do feel that drops in the stock market, especially substantial ones, do make a difference. Everyone feels it, to a degree. I do feel that things will pick up in the fall."

On Tuesday, the Dow Jones Industrial Average dropped by 129.95 points to close at 13,295.01. The Nasdaq composite index gave up 22.38 points to end at 2,549.77 and the Standard & Poor's 500 composite index fell by 16.12 points to settle at 1,493.00.

Acusphere plans direct deal

In other PIPE news Tuesday, Acusphere, Inc. announced plans to complete a $20,004,972 direct placement of units.

News of the deal sent the company's stock spiraling downward early in the session. By 9:56 a.m. ET, the stock had fallen 11.54%, or 30 cents. At the end of the day, the stock was down 9.62%, or 25 cents, to close at $2.35 (Nasdaq: ACUS). The stock fell another 2 cents in after-hours trading.

In the placement, the company plans to sell 7,694,220 units at $2.60 each.

The units consist of one share and one warrant for four-tenths of a share. The whole warrants are exercisable at $3.10 each through June 15, 2012.

The underlying shares are being sold under the company's shelf registration.

Cowen & Co., LLC was the placement agent.

Based in Watertown, Mass., Acusphere is a pharmaceutical company focused on developing new drugs and improving formulations of existing drugs.

Sapiens stock soars

In secondary market news Tuesday, Sapiens International Corp. NV watched its stock take off, a day after announcing the pending completion of a $20 million stock deal.

The stock gained 16.78%, or 48 cents, to close at $3.34 on Tuesday (Nasdaq: SPNS). On Monday, the stock climbed by 6.32%, or 17 cents, to settle at $2.86.

In the placement, the company sold shares to a group of institutional investors led by majority shareholder Emblaze/Formula Group at $3.00 each, a 12% premium to market.

The offering is expected to close at the end of June.

Based in Cary, N.C., Sapiens is an information technology software company.

SunOpta stock falls

In other secondary market news, SunOpta Inc.'s stock fell a day after the company sold $30 million in convertible preferred stock.

The stock gave up 8 cents to close at $11.13, only to gain back 6 cents in after-hours activity (Nasdaq: STKL). On Monday, the stock fell 12 cents to close at $11.21 and gained a penny in after-hours activity.

In the placement, the company sold shares of convertible preferreds that are convertible into common shares of subsidiary SunOpta BioProcess Inc. on a one-for-one basis.

The investors also received six-month warrants for 648,300 shares, each exercisable at $11.57.

Canaccord Adams Inc. was the lead placement agent for the deal.

Based in Norval, Ont., SunOpta converts biomass products into fuels.

High River Gold plans deal

Moving to Canadian offerings, High River Gold Mines Ltd. priced an C$18.2 million placement of units.

The non-brokered deal includes up to 7 million units of one share and one half-share warrant at C$2.60 each. The whole warrants allow for the purchase of another share at C$3.25 each for two years.

The deal is expected to close July 1.

Proceeds will be used for general corporate purposes.

On Tuesday, the company's stock fell by 3 cents, or 1.2%, to end at C$2.47 (Toronto: HRG).

Toronto-based High River is a gold exploration company.

New Millennium's offering

In other Canadian resources deals, New Millennium Capital Corp. completed a private placement for C$8,999,800.

The company sold 11.29 million shares at C$0.62 each and 2,666,667 flow-through shares at C$0.75 each.

Raymond James Ltd. was the placement agent.

Proceeds will be used for exploration on the company's iron ore projects and for working capital.

On Tuesday, the stock fell by 2 cents to close at C$0.74 (TSX Venture: NML).

Calgary, Alta.-based New Millennium is an iron ore exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.