Private placement volume sluggish despite higher stocks; Loudeye wraps $25.2 million deal

By Sheri Kasprzak

Atlanta, Dec. 22 - In spite of a strong stock market, private placement volume remained slow Wednesday ahead of the holiday.

"As the week goes on, I think volume will continue to fall," said one source. "Today volume was weak, tomorrow [Thursday] I think it will be weaker. There's really nothing to point to in the broad market that is pulling down volume."

"There's nothing in particular I can see that is affecting volume today," said one Canadian source. "Oil was down, which is never good for energy stocks, but with the upcoming holiday I'm hesitant to blame low volume on oil prices."

Oil dropped $1.50 Wednesday to close at $44.26 per barrel.

About six Canadian deals wrapped Wednesday, while two new deals were announced.

Heading up action in the United States was word from Loudeye Corp. that it closed a $25.2 million private placement.

The company sold 16.8 million shares at $1.50 each.

Investors also received warrants for about 5 million shares. Additional details about the warrants in the offering could not be obtained Wednesday.

"Tech stocks have been doing really well lately, but this deal is under-priced," said one market source. "The company itself has been struggling lately with capital, so they were probably willing to price low so they could quickly boost their capital."

In the third quarter, Loudeye posted revenues of $5.1 million.

Loudeye's stock fell $0.11 to close at $2.06.

Seattle-based Loudeye is a business-to-business digital media company. It plans to use the proceeds from the offering for working capital and general corporate purposes.

NexMed closes deal

NexMed Inc. wrapped a private placement for $7,033,996.

The company issued 5,495,310 shares at $1.28 each.

The offering also included warrants for 2,198,126 shares at $1.47 each for five years. One-year warrants were also issued for 549,536 shares at $2 each.

"This cash infusion significantly improves our reserves while we continue to pursue discussions with potential pharmaceutical partners for the development and commercialization of Alprox-TD and for our anti-fungal lacquer in various markets, including the U.S.," said NexMed's president and chief executive officer Joseph Mo, in a statement.

Based in Robbinsville, N.J., NexMed is a pharmaceutical company that develops transdermal treatments. The company plans to use the proceeds from the offering for general corporate purposes and to develop programs based on its NexACT technology.

On Wednesday, NexMed's stock closed up $0.08 at $1.32.

PhotoWorks raises $6.5 million

Seattle-based online photography service provider PhotoWorks Inc. closed $4 million of private placements as part of a recapitalization plan that includes the sale of notes and the conversion of preferreds and debentures.

Sunra Capital Holdings, Orca Bay Partners and Madrona Venture Group will buy $2 million in subordinated notes, convertible into common shares at $0.1078 each.

Once shareholders approve the recapitalization plan, the investors will buy an additional $2 million in common shares at $0.1078 each and warrants for an additional 1.9 million shares at $0.21 each.

As part of the plan, holders of PhotoWorks' series A preferred stock will convert the preferreds to 20,746,888 common shares at $0.723 each.

Also, holders of the company's existing subordinated debentures due April 2006 will convert the $2.5 million principal into shares at $0.11 each.

"This recapitalization proposal is a major achievement for PhotoWorks and its shareholders," said the company's president and chief executive officer Philippe Sanchez in a statement. "Upon shareholder approval, the company will be free of long-term debt, will have a simple common stock capital structure devoid of any liquidation preferences and will have growth capital needed to position the company for rapid growth in the booming digital market."

The capital infusion was conducted in an effort to strengthen PhotoWorks' balance sheet and to expand the company's digital marketing activities.

The company's stock closed down $0.08 at $0.43 Wednesday.

CorVu plans $5 million offering

CorVu Corp. has entered into an agreement with ComVest Investment Partners II LLC for a $5 million in a private placement.

In the agreement, ComVest will receive 20 million shares at $0.25 each.

Warrants are also included in the deal for an additional 6 million shares at $0.50 each.

CorVu is an Eden Prairie, Minn.-based software-development company.

On Wednesday, the company's stock closed unchanged at $0.26.

Viewpoint gets $5 million

Viewpoint Corp. sold 1,886,792 shares at $2.65 each, the company said Wednesday, for proceeds of $5 million.

The offering will be used to finance the acquisition and expansion of online advertising operation Unicast.

"The addition of $5 million in cash improves our liquidity position and gives us additional resources for financing the Unicast transaction and operating that expanded unit," said Viewpoint's chief financial officer William H. Mitchell in a statement.

Based in New York, Viewpoint is an internet graphics and delivery systems company.

Viewpoint's stock closed up $0.15 at $2.89 on Wednesday.

Franklin completes fourth tranche

Santa Monica, Calif.-based Franklin Capital Corp. finished the fourth tranche of a private placement for $4 million.

The company sold 500,000 shares at $8 each

The proceeds from the deal will be used to restructure the company and expedite its entry into the medical and health-care products industry and the financial services industry.

The company's stock closed up $0.20 at $11 Wednesday.

Dobi closes $3 million deal

Dobi Medical International Inc. wrapped up the final closing of a private placement announced last year for $3 million.

The company sold 6 million shares at $0.50 each.

The deal also included warrants for 1.5 million shares at $1.54 each.

Based in Mahwah, N.J., Dobi is a medical imaging company focused on improving the diagnosis of cancer.

Dobi's stock closed up $0.08 at $0.71 Wednesday.

CaridoTech raises $2.74 million

CardioTech International Inc. raised $2,735,006 in a private placement, the company said Wednesday.

The offering included 1,139,586 shares at $2.40 each.

The investors in the deal also received warrants for 569,793 shares at $3 each for five years and additional investment rights to buy 1,139,586 shares at $2.40 each exercisable through 90 days after the registration statement is effective.

"This financing is an important step in the growth CardioTech," said Michael Szycher, chief executive officer of CardioTech. "We believe that the financing represents a vote of confidence by the institutional investors in our company, in our business plan and our management's ability to execute on this plans."

Based in Wilmington, Mass., CardioTech develops, manufactures and markets devices to treat cardiovascular diseases.

The company's stock closed down $0.02 at $2.58 on Wednesday.

Canadian deals

Breaker Energy Ltd. led Canadian private placement action Wednesday when it closed C$10.01 million deal.

The company issued 3.85 million class A shares at C$2.60 each.

The deal was placed through an underwriting syndicate led by Tristone Capital Inc.

Based in Calgary, Alta., Breaker Energy is an oil and gas company. It plans to use the proceeds from the deal to partially fund the closing of an asset purchase portion of Breaker's previously announced acquisitions in the High Prairie area of Alberta. The remainder of the funds will be used for exploration and development.

On Wednesday, the company's stock closed unchanged at C$3.30.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.