Medwave raises $4.43 million in stock offering; stronger gold prices encourages PIPE activity within sector

By Sheri Kasprzak

New York, Feb. 22 - Medwave, Inc. headed up light private placement activity Wednesday, completing a $4.43 million stock offering that nudged its stock up slightly.

The stock moved up 1.33%, or 4 cents, to end at $3.05 (Nasdaq: MDWV).

Medwave issued 1,616,788 shares at $2.75 each to investors led by H&Q Healthcare Investors and including Nite Capital and Paragon Capital.

The company had 11,475,416 outstanding common shares as of Jan. 31.

The offering included warrants for 404,403 shares, exercisable for five years at $3.29 each.

Canaccord Adams Inc. was the placement agent.

The company has conducted private placements before.

On Feb. 11, 2005, Medwave settled a $5.2 million offering of 1.3 million shares at $4.00 each. Adams Harkness Inc. was the placement agent for that deal.

Medwave recently reported a net loss of $998,708 for the quarter ended Dec. 31, 2005, compared with a net loss of $866,600 for the same quarter ended Dec. 31, 2004.

"Operating revenue was $247,600 and $302,000 for the quarters ended Dec. 31, 2005 and 2004, respectively, a decrease of 18%," said the report. "This year-to-date decrease is due to a long lead time on the reorder of the components of the Vasotrac unit that resulted in a total backorder amount of approximately $74,000. Service revenue also decreased due to a substantial service invoice recorded in December 2004."

Based in Danvers, Mass., Medwave develops sensor-based noninvasive blood pressure products.

Elsewhere in the tech sector, Valence Technology, Inc. announced the completion of a $1.5 million convertible note deal.

The note, purchased by Berg & Berg Enterprises, LLC, bears interest at 8% annually, matures March 30, 2006 and is convertible at price equal to 85% of the average closing bid price of the company's stock for the five trading days before conversion, with a $1.93 floor.

The company's stock closed down 3 cents, or 1.52%, to end at $1.94 (Nasdaq: VLNC). In after-hours trading, the stock lost another 2 cents.

Austin, Texas-based Valence develops a phosphate-based lithium-ion battery technology.

Gold sparks some activity

In the broader PIPE market, gold issuers returned as gold prices edged their way back after a dip earlier in the week.

Gold prices advanced $0.30 to end at $553.90 per ounce.

The movement sparked some activity in the gold sector after dropping prices drove away gold issuers, said one Canadian market source.

"I think prices are still strong enough to bring in interest but we're definitely off of the highs," he said. "Investors are still rather optimistic, I'd say."

San Gold Corp. led the latest round of gold offerings Wednesday with a C$10 million senior convertible debenture deal.

The two-year debentures bear interest at 10% annually and are convertible into common shares at C$0.80 each after the first year.

The placement was announced Wednesday morning, and the company's stock closed the day down by 3 cents at C$0.70 (TSX Venture: SGR).

The deal is scheduled to close Feb. 28.

Proceeds will be used for the development of the company's Rice Lake Gold and San Gold No. 1 mines.

Based in Bissett, Man., San Gold is a diamond and gold exploration company.

Glass Earth prices C$1 million

In other gold news Wednesday, Glass Earth Ltd. priced a C$1 million unit offering.

That deal includes 6,666,666 units of one share and one half-share warrant. Each whole warrant is exercisable at C$0.25 each for two years.

Proceeds will be used for field programs from April through July 2006 and for the start of drilling on some of the company's targets.

The stock remained unchanged at C$0.145 Wednesday (TSX Venture: GEL).

Toronto-based Glass Earth is a gold exploration company.

On Tuesday, gold explorer Kimber Resources Inc. priced two offerings totaling C$9.9 million.

The first, a non-brokered deal, included 3.8 million shares at C$2.00 each, and the second, a brokered deal, included 1.15 million shares at the same price.

Kimber is based in Vancouver, B.C.

Columbia raises C$4.15 million

Elsewhere in Canadian resources news, Columbia Metals Corp. wrapped a C$4,155,000 offering of 8.31 million units.

The company sold units of one share and one half-share warrant at C$0.50 each. The whole warrants allow for the purchase of another share at C$0.65 each through Feb. 22, 2008.

Proceeds will be used for development on the company's Mexican properties, property acquisitions and working capital.

The deal was announced Wednesday afternoon, sending the company's stock down 2 cents to settle at C$0.64 (TSX Venture: COL).

Based in Toronto, Columbia is a metals exploration company.

Covalon's C$2.5 million offering

Looking to the tech sector, Covalon Technologies, Ltd. priced a C$2.5 million unit deal.

The company plans to sell up to 5 million units of one share and one warrant. The warrants are exercisable at C$0.75 each for 18 months.

Underwriter Octagon Capital Corp. has a greenshoe for up to 11 million units.

The offering is slated to close March 16.

The company's stock closed unchanged at C$0.51 (TSX Venture: COV).

Proceeds will be used for the development of the company's drug eluting vascular wraps, vascular grafts and cardiac tissue patch products. The remainder will be used for working capital.

Based in Mississauga, Ont., Covalon develops biomaterials used in wound care and for surgical applications.

BioSphere stock slips

Upon the closure of its previously announced $14,525,000 private placement, BioSphere, Inc.'s stock fell for the second straight session.

The company's stock lost 12 cents Wednesday to end at $7.39 (Nasdaq: BSMD).

After the offering was announced Tuesday, the company's stock fell 1.57%.

In the deal, which closed Wednesday, BioSphere issued shares at $7.00 apiece to a group of institutional investors.

Based in Rockland, Mass., BioSphere is a medical device company focused on developing bio-engineered microspheres used to treat uterine fibroids, hypervascular tumors and vascular malformations.

Kimber stock advances

Kimber Resources Inc. saw its stock climb on Wednesday after it priced two private placements on Tuesday.

The stock gained 4 cents, or 1.82%, to end at C$2.24 Wednesday (Toronto: KBR).

On Tuesday, the company's stock slipped 8.33%, or 20 cents, to close at C$2.20.

In both placements, the company agreed to sell shares at C$2.00 each. One of the offerings, a non-brokered deal, will be geared toward Canadian investors, and the other, a brokered deal, will be geared toward U.S. investors.

Kimber is a gold and silver explorer based in Vancouver, B.C.

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