Private placement volume weak on lower stocks; Global Alumina prices $30 million deal

By Sheri Kasprzak

Atlanta, Dec. 17 - Private placement volume took another hit as the week ended, partly because of a dismal stock market.

"Stocks were down today so volume is down," said one sell-sider. "There are some deals out there today, but for the most part, it's been pretty quiet."

The Dow Jones Industrial Average lost 55.72 Friday to close at 10,694.92, the Nasdaq composite dropped 10.95 to end at 2,135.20 and the S&P 500 ended the day down 9.01 at 1,194.20.

Canadian volume got a boost from better oil prices. Oil climbed $2.10 to close at $46.28 per barrel.

"There were quite a few Canadian energy companies in the market today," said one Canadian market source. "Obviously, oil prices have something to do with that."

Energy company Stratic Energy Corp. was among the oil and natural gas companies to benefit from stronger oil. It announced its plans to raise C$5.8 million in a private placement Friday.

In the United States, Global Alumina led action with its $30 million offering.

The offering includes 15.385 million shares at about $1.95 per share.

"It seems like a good deal for them," said one market source who had seen the offering. "It's priced in line with the market. You can't ask for more than that."

On Friday, the company's stock closed down $0.04 at $2.

Based in Toronto, Global Alumina is a company that plans to use Guinean bauxite for aluminum sales. The company plans to use the proceeds from the deal to develop the next strange of its aluminum refinery in Guinea.

BriteSmile to raise up to $16 million

BriteSmile Inc. will raise up to $16 million in a private placement of senior convertible notes.

The notes accrue interest at the greater of 5% or six-month Libor plus 300 basis points per year, with an 8% ceiling.

The notes are convertible into shares at $7.61 each and mature in 36 months, with payments due in either cash or stock beginning in June 2006.

Investors will also receive warrants for 544,253 shares at $7.61 each for five years.

The company already sold $12 million of the notes, and investors have another 180 days to buy up to an additional $4 million under the same terms.

Merriman Curhan Ford & Co. was the placement agent in the transaction.

Based in Walnut Creek, Calif., BriteSmile develops and manufactures tooth-whitening technology. The company plans to use the proceeds in the offering to fund the continuation of its spa rollout strategy, the expansion of its International Associated Center footprint and the establishment of its International spas. The remainder of the funds will be used for working capital.

The company's stock closed up $0.12 at $6.87 on Friday.

Cinema Ride gets equity line

Cinema Ride Inc. got a $10 million equity line from Cornell Capital Partners LP.

The company may draw upon the standby equity distribution agreement for two years.

Cinema Ride will dictate the timing and the amount of the stocks sold to Cornell.

Cornell received 290,000 additional shares as commitment shares and will receive an additional 290,000 shares on the first anniversary of the agreement.

Newbridge Securities Corp. was the placement agent in the offering.

Cinema Ride is a three-dimensional motion simulator operator based in Studio City, Calif.

On Friday, the company's stock closed down $0.06 at $0.39.

QSound plans $2 million deal

QSound Labs Inc. will sell 347,826 shares at $5.75 each for $2 million in a private placement.

The offering includes warrants for up to 139,130 shares. The warrants allow for an additional share at $9.12 each for five years.

Investors in the deal will also receive additional investment rights for up to 521,739 shares and 208,696 warrants, which will be available the later of July 16, 2005 or 180 days after the registration statement is effective.

Kaufman Bros. LP was the placement agent in the deal.

Calgary, Alta.-based QSound develops audio and voice software. The company plans to use the proceeds from the deal for working capital as it expands its voice over internet protocol business.

The company's stock closed down $0.19 at $6.86 Friday.

Galtech may get $2 million

International Amateur Sports Championships Inc. has given the green light to a private placement for up to $2 million for subsidiary Galtech Semiconductor Materials Corp.

The offering will include 16 million shares at $0.125 each.

The private placement memorandum has not yet been completed on the offering, but the deal should be available to investors soon.

Galtech, based in Orem, Utah, researches and develops semiconductor materials.

On Friday, Galtech's stock closed unchanged at $0.025.

AMDL wraps second tranche

AMDL Inc. closed the second tranche of a private placement for $1,237,190.

The company sold 1,606,741 shares at $0.77 each.

Investors in the deal also received warrants for an additional 1,767,415 shares at $1.17 each for four years.

"We are gratified by the response to our offering," said AMDL's president Gary Dreher, in a statement. "The proceeds will be used to fund the costs of regulatory approvals of our products and for general working capital needs."

Tustin, Calif.-based AMDL develops and markets tests for the early detection of cancer and other diseases.

AMDL's stock closed up $0.01 at $0.88 Friday.

World Waste raises $1.1 million

World Waste Technologies Inc. sold 440,000 units at $2.50 each for $1.1 million in a private placement.

The offering, sold to five accredited investors, was comprised of one share and one quarter-share warrant.

The whole shares allow for an additional share at $0.01 per share for five years. The investors exercised all of the warrants for 110,000 shares.

Chadbourn Securities Inc. and Laird Q. Cagan, a shareholder of the company, were the placement agents in the offering.

World Waste Technologies, based in San Diego, develops technology to reverse the cycle of landfill waste.

On Friday, the company's stock closed unchanged at $3.80.

Great Plains leads Canadian deals

Heading up private placement action north of the border, Great Plains Exploration Inc. raised C$9.14 million in an upsized private placement.

The company issued 3.056 million shares at C$1.25 each and 3.325 million flow-through shares at C$1.60 each.

On Nov. 30, the company announced its plans to raise C$8.5 million.

An underwriting syndicate led by GMP Securities Ltd. placed the offering.

Great Plains is a Calgary, Alta.-based oil and natural gas exploration company. It plans to use the proceeds from the deal to fund its proposed C$14 million capital expenditure program in 2005, including the drilling of wells in the Peace River Arch, Pembina and Hamilton Lake areas.

The company's stock closed down C$0.10 at C$1.30 Friday.

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