Coach Industries raises $2.2 million in stock deal; rising gold prices spark surge in gold offerings

By Sheri Kasprzak

New York, Dec. 7 - Coach Industries Group, Inc. led PIPE news on Wednesday with a $2.2 million deal while a continued spike in gold prices caused a flow of offerings from gold producers.

Coach sold 7,333,333 shares at $0.30 apiece to a group of institutional investors and also issued 7,333,333 warrants.

As of Nov. 1, the company had 20,608,737 outstanding common shares.

Half of the warrants are exercisable at $0.50 each for five years and the other half are exercisable at $0.75 each for five years.

Monarch Capital Group, LLC was the placement agent.

"The additional funding will allow us to maintain our growth momentum as we finish the fourth quarter and position the company for profitable growth in 2006," said Francis O'Donnell, the company's chief executive officer, in a statement.

Coach recently reported a net loss of $1,224,491 for the quarter ended Sept. 30, compared with a net loss of $1,735,186 for the same quarter in 2004.

Coach, based in Kansas City, Mo., provides financial services, as well as limousine and other vehicles to commercial fleet operators.

On Wednesday, the company's stock remained unchanged at $0.40.

Gold prices rise

Looking to the broader PIPE market Wednesday, market sources said a jump in gold prices fueled a surge in gold offerings.

Volume in general in the United States took a hit from lower stocks, one sellside source said, as the Dow Jones Industrial Average fell 45.95 to end at 10,810.91 and the Nasdaq composite index slipped 8.75 to close at 2,252.01. The Standard & Poor's 500 composite index lost 6.33 to settle at 1,257.37.

Gold prices rose $4.10 to close at $514.30 per ounce, the highest level since 1981.

"Seeing a lot of bigger deals," said one sellsider of the increase in gold offerings. "There were lots of smallish deals earlier in the week, late last week."

Leading those offerings was a C$10 million unit deal from Vancouver, B.C.-based Petaquilla Minerals Ltd.

The company plans to sell 10,526,315 units at C$0.95. The units include one share and one half-share warrant. The whole warrants allow for another share at C$1.20 each for the first year and C$1.44 for the second year.

Proceeds will be used for drilling and feasibility work on the company's Molejon gold project in Panama. The rest will be used for working capital.

The company's stock closed down C$0.05 to end at C$0.99 Wednesday.

Cassidy Gold's C$4 million offering

Elsewhere in the gold sector, Cassidy Gold Corp. priced a C$4 million offering of 8 million units.

After the offering was announced Wednesday afternoon, the company's stock surged 29.55%, or C$0.13, to close at C$0.57.

The units are comprised of one share and one warrant. The warrants are exercisable at C$0.75 each for two years.

Jennings Capital Inc. is the placement agent and has an over-allotment option for up to 4 million additional units.

Proceeds will be used for exploration on the company's Kouroussa project in Guinea and for general corporate purposes.

Cassidy is based in Kamloops, B.C.

BrazMin Corp., a gold explorer based in Tortola, British Virgin Islands, priced a C$3 million non-brokered private placement.

The company plans to sell 2,222,222 units at C$1.35 each to a group of resource investors including Macquarie Bank Ltd.

The units consist of one share and one half-share warrant. The full warrants allow for the purchase of another share at C$1.70 each for one year.

Proceeds will be used for exploration on the company's Sao Jorge project in Brazil. The rest will be used for other exploration and for general corporate purposes.

The company's stock slipped C$0.10, or 6.54%, to end at C$1.43 Wednesday.

Zenas Energy leads oil deals

Heading to the energy sector, Zenas Energy Corp. arranged a C$10.08 million offering of flow-through shares.

The company plans to sell 1.6 million shares at C$6.30 each through a syndicate of underwriters led by GMP Securities, LP

Proceeds will be used for exploration and development expenses on the company's properties.

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

The offering was announced Wednesday afternoon, and the company's stock gained C$0.13, or 2.54%, to end the day at C$5.25.

Another Calgary-based oil explorer, ProspEx Resources Ltd., priced a C$6.09 million flow-through share offering as well. That deal includes 1.4 million shares at C$4.35 each.

Tristone Capital Inc. leads a syndicate of agents placing the deal.

ProspEx's stock gained C$0.10, or 2.94%, to settle at C$3.50 Wednesday.

Proceeds will be used for the company's 2006 capital expenditure program.

On Wednesday, the company announced that its board of directors approved a C$60 million capital budget for 2006.

Oil prices in general fell on Wednesday for the first time in four sessions.

Oil lost $0.73 to close at $59.21 per barrel.

PW Eagle stock slips

Eugene, Ore.-based PW Eagle, Inc.'s stock fell on Wednesday following the completion of an $18.75 million private placement.

The company's stock ended down 37cents at $23.68 on Wednesday.

On Tuesday, when the company announced the deal settlement, its stock dropped 95 cents to close at $24.05.

Under the terms of the placement, PW Eagle sold shares at $18.75 each.

PW Eagle produces polyvinyl chloride pipe and fittings.

Ashlin stock falls 16.8%

A day after Gales Industries Inc. announced the completion of a $6,793,280 private placement of convertible preferred stock, the stock of its parent weakened.

Ashlin Development Corp., Gales Industries' parent company, saw its stock dive 16.81%, or $0.10, to close at C$0.47.

On Tuesday, after the settlement was announced, the company's stock fell $0.045, or 7.38%, to end at $0.565.

The private placement, which was completed as part of Gales' merger with Ashlin, included preferred stock convertible into a total of 30,878,855.2 common shares.

Based in Boca Raton, Fla., Gales makes automotive accessories.

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