Zi plans $10 million unit offering; Parkervision seals $8.43 million stock sale

By Sheri Kasprzak

New York, Feb. 23 - Two tech companies took the lead in PIPE news to close out the week, led by a planned $10 million offering from Zi Corp. Parkervision, Inc. also settled a private placement of shares for $8,435,748.

In the Zi offering, which has not yet priced, the company plans to sell units of one share and one warrant for two-tenths of a share. The units will be priced at 90% of the volume weighted average trading price of the company's stock for the five trading days before closing.

The strike price of the warrants will be equal to 120% of the volume weighted average price of the stock, also for five trading days before closing.

Proceeds will be used for general corporate purposes.

On Friday, the stock gained 3 cents to close at $2.33 but lost 5 cents in after-hours trading (Nasdaq: ZICA).

Zi, based in Calgary, Alta., develops devices used with mobile phones and gaming consoles.

The offering comes as market sources say tech companies are making a comeback in the private placement sector.

"We're already seeing a lot of them," said one New York-based sellside market source, who is focused on both tech and biotech offerings. "Yeah, there was a time when they were tapering off a bit but they seem to be coming back in now."

Parkervision's deal

In the Parkervision offering, the company sold 992,441 shares at $8.50 apiece.

The deal sent the company's stock up 15 cents to round out the week at $10.63 (Nasdaq: PRKR).

"We are extremely pleased with the level of support for this offering," said Parkervision chief executive officer Jeffrey Parker in a statement. "This financing fortifies our balance sheet as we continue to move closer toward the adoption of our technology solutions by our target customers."

Located in Jacksonville, Fla., Parkervision develops semiconductors used in wireless products.

Local.com raises $8 million

In other news, Local.com Corp. pocketed $8 million from the sale of 9% convertible debentures to Hearst Interactive Media.

The debentures are due February 2009 and are convertible at $4.02 each.

Hearst also received warrants for 796,020 shares, exercisable at $4.82 each, and warrants for 796,020 shares, exercisable at $5.63 each. Both warrants expire February 2012.

GunnAllen Financial was the placement agent.

Proceeds will be used for strategic initiatives and working capital.

"Hearst's investment in Local.com is a welcome endorsement of our long-term strategy by one of the largest media companies," said Heath Clarke, the company's CEO, in a news release. "We are excited to learn from Hearst's vast experience in reaching local consumers and merchants, and believe that the relationship could ultimately accelerate the development of our own business."

"Local.com is well-positioned to capitalize on the consumer and advertiser trends that are delivering growth in the emerging local search advertising industry," said Kenneth Bronfin, president of Hearst Interactive, in a statement. "We believe Local.com has the right strategy and can become a leader in this area."

Local.com's stock advanced by 22 cents on Friday, or 5.48%, to end at $4.31 (Nasdaq: LOCM).

Located in Irvine, Calif., Local.com operates a web site offering information on local businesses products, services, people and jobs.

Sierra Vista raises C$15 million

Looking to Canadian offerings Friday, Sierra Vista Energy Ltd. wrapped a C$15,000,400 offering of convertible debentures and flow-through shares, including a fully exercised greenshoe.

The company sold 5.556 million flow-through shares at C$0.90 each for C$5,000,400, including a greenshoe for C$2 million exercised by a syndicate of underwriters led by Dundee Securities Corp.

The company also sold C$10 million in 9.5% convertible debentures due 2012. The debentures are convertible at C$0.90 each.

The debentures were sold through Wellington West Capital Markets Inc.

Proceeds from the debentures will be used to finance the company's 2007 capital budget program and to finance drilling commitments of the company's farm-in program to the end of 2007.

Proceeds from the flow-through shares will be used for Canadian exploration expenses.

The company's stock gave up 4 cents to close at C$0.60 Friday (TSX Venture: SVR).

Calgary, Alta.-based Sierra Vista is an oil and natural gas exploration company.

Apollo wraps $8.58 million deal

In other resources offerings, Apollo Gold Corp. sold $8.58 million in convertible debentures.

The two-year debentures bear interest at 12% for the first year and at 18% for the second year. The debentures are convertible at $0.50 each.

For every $1,000 in principal the investors received warrants for 2,000 shares, each exercisable at $0.50 for two years.

URegent Securities Capital Corp. and Shoreline Pacific, LLC were placement agents for the offering.

The company's stock gained a penny Friday to close at $0.74 (Amex: AGT) but lost 14 cents in after-hours trading.

Denver-based Apollo is a gold exploration company.

Grand Power stock gains 15%

Back to Canadian deals, Grand Power Logistics Group Inc. saw its stock gain 15.38% on Friday after the company priced a C$1 million private placement of convertible debentures.

The stock gained 10 cents to end the session at C$0.75 (TSX Venture: GPW).

The 5% debentures are due in two years and convertible at C$0.60 each. The conversion price is a 7.7% discount to the company's C$0.65 closing stock price on Thursday.

The investors will receive warrants for 600,000 shares, exercisable at C$0.65 each for two years.

Proceeds will be used for working capital and to expand the company's business in Hong Kong, Macau and China.

Calgary, Alta.-based Grand Power provides air-freight forwarding and sea-freight services, logistics, warehousing and distribution services.

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