Velocity Asset Management pockets $1.725 million from PIPE; Eaglecrest raises $4.77 million

By Sheri Kasprzak

New York, Oct. 12 - It was all about the Canadians on Friday as U.S. PIPE volume slowed to a crawl.

"I'm not really seeing anything that would be causing volume to slip," said one market insider. "Just regular Friday volume from what I can tell."

The light activity in the U.S. was led by a $1.725 million offering of stock from Velocity Asset Management, Inc.

Reasonably heavy Canadian action was led Friday by a US$4,771,827 offering from Eaglecrest Explorations Ltd.

In the Velocity deal, the company sold 862,500 shares in that deal at $2.00 each in two tranches. The company raised $375,000 in the most recent tranche.

The investors in the deal received warrants for 172,500 shares, exercisable at $2.50 each for three years.

Security Research Associates, Inc. is the placement agent for the offering.

Proceeds will be used for the purchase of additional pools of delinquent consumer receivables. The rest will be used for working capital.

The Velocity private placement sent shares of zooming up 13.64%. The stock gained 30 cents to end at $2.50 (Amex: JVI).

"Proceeds from these financings, combined with available borrowings under our credit facility with Wells Fargo Foothill, will enable Velocity to complete the purchase of additional pools of delinquent consumer receivables," said Jack Kleinert, Velocity's chief executive officer, in a news release.

"Recent challenges in the capital markets have created attractive pricing for consumer receivables meeting our purchase criteria. Exploiting this environment, we have already completed the purchase of a $30.7 million loan package using proceeds from these financings and available borrowings, and are looking to put the remaining funds to work in the near term."

Velocity sold $1.8 million in 10% convertible debentures in October 2005. The notes were due March 31, 2006 and were convertible at $4.00 each.

Wall, N.J.-based Velocity buys delinquent consumer receivables and uses an outsourced litigation model to collect them.

Eaglecrest raises $4.77 million

Moving to those Canadian offerings, Eaglecrest Explorations took in $4,771,827 from the sale of 36,706,361 units of one share and one warrant from a non-brokered deal.

The units were sold at $0.13 each.

The warrants associated with the units are exercisable at $0.15 each through March 28, 2008 and at $0.30 each from March 29, 2008 through Sept. 28, 2009.

In addition to the units sold, Eaglecrest sold $600,000 in a convertible loan. The 8% notes are due Aug. 8, 2009. The notes are convertible into units at $0.165 each.

The units include one share and one warrant with each warrant exercisable at $0.165 for through Aug. 8, 2009.

The proceeds from the units offering will be used for the company's drilling program at the San Simon gold project in Bolivia. The proceeds from the loan will be used for drilling and working capital.

"This financing provides us with the operating flexibility to continue our short offset drilling campaign through the first quarter of 2008," said Hans Rasmussen, Eaglecrest's chief operating officer, in a news release.

"After successfully delineating gold mineralization in the L463 gold shoot by drilling 19 holes that feature intercepts with over 10 grams per tonne gold, we plan to move west to begin definition drilling in the L484 gold shoot and five other gold shoots that remain to be drilled."

The company's stock edged up by a penny on Friday to end at C$0.155 (TSX Venture: EEL).

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

Full Metal prices deal

In other natural resources news, Full Metal Minerals Ltd. negotiated an upsized C$13.5 million offering of units through a syndicate of underwriters, increased from the C$10 million announced earlier in the day.

Full Metal plans to sell up to 5.4 million units in the deal at C$2.50 each.

The units consist of one share and one half-share warrant. The whole warrants are exercisable at C$3.00 each for two years.

A syndicate led by Canaccord Capital Corp. and including Raymond James Ltd. will sell 4 million of the units. The underwriters have a greenshoe for 2 million units. The greenshoe was originally set at 600,000 units when the offering priced on Friday morning.

Up to 1.4 million units may be sold on a non-brokered basis. The non-brokered offering was originally expected to include 1.2 million units before it was upsized later in the day.

Proceeds from both offerings will be used for exploration and for working capital.

Shares of 8 cents, or 3.01%, to end at C$2.58 (TSX Venture: FMM).

Full Metal is a mineral explorer also based in Vancouver.

Viper Powersports raises $1.004 million

Elsewhere, Viper Powersports Inc. sealed a $1.004 million offering of stock, selling 1,388,667 shares at $0.75 each.

The shares were sold to a group of accredited investors.

Proceeds will be used for motorcycle component inventories and other expenses related to the commercial production of the company's Viper motorcycles.

News of the deal shoved shares of Viper down 30 cents, or 23.08%, to end at $1.00 (OTCBB: VPWS).

Viper, headquartered in Big Lake, Minn., makes motorcycles.

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