Buckingham satisfied with $1.75 million sale; Rocket City confident stock will rise

By LLuvia Mares

New York, Aug. 13 - Buckingham Exploration Inc. said it was satisfied by the $1.75 million in proceeds it received from a private placement announced late Friday.

"It exceeded our expectations," said Robin Relph, the company's president and chief executive officer.

The company sold 3.5 million units at $0.50 each. The units are made up of one share and one non-transferable warrant to purchase an additional common share at $1.00.

Proceeds gained from the shares will be used toward the purchase of additional mineral claims, working capital and exploration programs.

A 10% finders fee will be paid to a third party. The units were sold to European investors.

Buckingham deliberately targeted European buyers for the sale in order to avoid the downward pressure on a company's stock price that can follow a PIPE sale in the U.S. market, Relph said.

Buckingham Exploration is a Vancouver, B.C., exploration stage company specializing in acquisition and exploration of uranium properties in North America.

Buckingham stock did not change hands Monday. Its last trade was at $0.60 on Friday.

Rocket City lower

Elsewhere in the market, Rocket City Enterprises, Inc., based in Orlando, Fla., was not too "happy" after its stock fell 26% Monday following a 40:1 reverse split, according to Andrew Barwicki, the company's investor relations director.

Rocket City also announced Friday that it had raised $5.2 million from completed a private placement of stock with institutional and sophisticated investors.

"We would have rather had it increased 26%," Barwicki said about the stock's drop.

But he added that the company is not too worried about how the stock will do in the remainder of the week.

"With our growth and new dealerships we should be seeing an increase soon," he said.

The company sealed a $5.2 million stock deal Friday. Among the investors were Julius Baer Asset Management, Anima Funds and Banque Jacob Safra. Continental Advisors SA was placement agent.

In trading Monday, the company's stock gave up 42.81%, or 68.5 cents, to close at $0.915 (Pink Sheets: RCTY). Shares were purchased by a group of institutional and sophisticated investors that includes Julius Baer Asset Management, Anima Funds and Banque Jacob Safra.

Waiting for stability

Overall activity in the PIPEs market was quiet Monday and participants said they said things would likely stay subdued until there are several sessions of stability.

That, they added, could be a while since more bleak news is likely this week.

"We are seeing all sorts of dislocation in the market," said one source. "I think we will start to see more activity as soon as we get the market stabilized again."

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