Ignis raises NOK 30 million; Overland Storage aims for $12 million; China TransInfo plans deal

By Stephanie N. Rotondo

Portland, Ore., Feb. 22 - The PIPEs market was busy Monday, as a multitude of companies across a variety of sectors announced new or completed deals.

Ignis ASA, a Norwegian company, said it had raised NOK 30 million from a private placement of ordinary stock. The company also intends to conduct a rights offering at similar terms to the private transaction.

Overland Storage Inc. meantime said it was seeking $12 million from a private placement of convertible preferred shares. The deal was expected to settle almost immediately.

Also, China TransInfo Technology Corp. announced a $10 million registered direct offering of equity. SAIF Partners III LP is the investor.

Novadaq Technologies Inc. closed on its C$7 million private placement of units. The deal was oversubscribed, resulting in total proceeds of C$7.41 million.

Elsewhere, Grand Power Logistics Group Inc. brought a best-efforts private placement of units to market. The company is hoping to raise up to C$4 million.

And, Synergy Resources Corp. said it completed the third and final tranche of its private placement of promissory note units. A company spokesperson called the deal "a very big positive for the company," adding that the financing would result in "minimal" dilution.

Ignis takes in NOK 30 million

Ignis, a Lysaker, Norway-based provider of fiber optical technologies, said it completed a NOK 30 million private placement of ordinary shares.

The company sold 10 million of the shares at NOK 3.00 each.

"The issue was directed towards professional Norwegian and international institutional investors," the company said in a press release. "Various new institutional investors participated as well as an international industrial investor, alongside existing investors and members of the board of directors and the management."

Novel Centennial Ltd. purchased approximately 5.33 million of the shares.

The company also intends to launch a rights offering for investors who did not participate in the placement. A total of 6 million shares will be issued in the offering at NOK 3.00 each.

Proceeds will be used for operational initiatives and increased working capital requirements resulting from growth.

Ignis' equity (Oslo: IGNIS) closed at NOK 3.36.

Overland aims for $12 million

Overland Storage intends to raise $12 million via a private placement of convertible preferred stock.

The deal is expected to close Monday.

The company will issue 794,659 of the preferreds. The shares are convertible into approximately 4.52 million common shares.

Additionally, investors will receive warrants equal to 6.37 million common shares. The warrants are exercisable at $2.583 per share until Feb. 22, 2015.

"We are extremely pleased to have completed this round of funding," said Eric Kelly, president and chief executive officer, in a news release. "Having additional capital puts us in the position to execute on our vision and strategy, which is important to our partners, customers and employees."

Proceeds will be used for product development, sales and marketing expansion and general working capital.

Overland's shares (Nasdaq: OVRL) dropped $0.325, or 13.27%, to $2.125. Market capitalization is $11.6 million.

Overland Storage is a San Diego-based provider of data protection appliances.

China TransInfo plans direct placement

China TransInfo Technology brought a $10 million registered direct offering of equity to market.

The Beijing-based company will sell approximately 1.56 million common shares at $6.39 per share to SAIF Partners III LP.

"We are very excited to have strengthened our key partnership with SAIF through this additional financing," commented Shudong Xia, CEO of TransInfo, in a press release. "Considering our significantly enhanced balance sheet, we are now in a stronger position financially to execute our strategic growth initiatives in China's rapidly growing transportation information industry."

"We are delighted with this opportunity to increase our investment in China TransInfo, given our confidence in the company's industry leading technology and experienced management team," added Andy Yan, managing partner of SAIF. "We look forward to continuing to build our relationship with China TransInfo."

Proceeds will be used for business expansion, potential acquisitions and general corporate purposes. Settlement is expected by Feb. 24.

China TransInfo's shares (OTCBB: CTFO) gained 11 cents, or 1.62%, to $6.88. Market capitalization is $154 million.

Novadaq unit sale settles

Novadaq Technologies announced it settled its previously announced private placement of units, pocketing C$7.41.

The deal originally priced Feb. 17 for about C$7 million.

The Toronto-based medical imaging systems developer sold 3.04 million units at C$2.43 each. The units contained one common share and one fifth-share warrant. Whole warrants are exercisable at C$3.00 for five years.

Proceeds will be used for sales and marketing expenses, product research and development and general corporate purposes.

Calls and emails seeking comment were not returned as of press time on Monday.

Novadaq's stock (Toronto: NDQ) fell 24 cents, or 8.76%, to C$2.50. Market capitalization is C$62.4 million.

Grand Power brings best-efforts deal

Grand Power Logistics negotiated a best-efforts private placement of units for proceeds up to C$4 million.

The company will sell units at C$0.30 per unit. Each of the units will contain one common share and one half-shares warrant. Whole warrants are exercisable at C$0.42 for two years.

Proceeds will be used to expand sales activities and for general corporate and working capital purposes. Settlement is expected by March 16.

Grand Power's shares (TSX Venture: GPW) were unchanged at C$0.35. Market capitalization is C$15.6 million.

Grand Power Logistics is a Calgary, Alta.-based provider of air and ocean freight services.

Synergy wraps third, final tranche

Synergy Resources closed the third and final tranche of its private placement of promissory note units, according to a regulatory filing.

The third portion settled Feb. 19. The first and second tranches were completed Dec. 29 and Jan. 28 for $4.17 million and $5.28 million, respectively.

All told, the company sold 117.61 of the units at $100,000 each. The units consisted of a $100,000 8% promissory note and 50,000 warrants. The note matures Dec. 31, 2012 and is convertible into common stock at $1.60 per share.

The warrants are exercisable at $6.00 per share. According to Andrew Barwicki - who handles investor relations for the company - that represented a premium to the stock price.

"So dilution is minimal," he said.

Barwicki said that the funding would be used for exploration and drilling projects at the company's 35 wells in the D-J Basin, which is located at the crossroads of Wyoming, Colorado, Nebraska and Kansas.

"The company has no debt," he said. "So all the proceeds are going to that. It's a very big positive for the company."

Synergy's equity (OTCBB: SYRG) declined by 86 cents, or 22.28%, to C$3.00. Market capitalization is $31.2 million.

Synergy Resources is a Platteville, Colo.-based oil and gas exploration company.

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