Kodiak Oil pockets $40 million from stock offering; MCF wraps $7.5 million convertible deal

By Sheri Kasprzak

New York, March 8 - Heading up a light day of PIPE activity Wednesday was a $40,004,250 stock deal settled by Kodiak Oil & Gas Corp.

The offering closed despite a rather substantial drop in oil prices. Oil lost $1.56 Wednesday to close at $60.02 per barrel after dropping below $60 per barrel early in the session.

Kodiak issued 19,514,268 shares at $2.05 each in the non-brokered deal.

At closing of the placement, Kodiak now has 74,061,426 outstanding shares.

The settlement sent the company's stock diving more than 13% on Wednesday. The company's stock lost 36 cents, or 13.19%, to end at C$2.37 (TSX Venture: KOG).

On March 3, the company's stock advanced by 20 cents to close at C$2.90 but lost 10 cents on March 6 to close at C$2.80 and lost another 7 cents on March 7 to end at C$2.73.

Trading volume of Kodiak's stock was off slightly with 112,923 shares traded compared to the average of 161,302 shares.

The Denver-based company intends to use the proceeds from the stock deal for exploration on its oil and gas properties in the Greater Green River Basin. The remainder will be used for general corporate purposes.

With oil prices dropping, one market source said investors may become more selective of energy issuers.

"I don't think the interest is going to go away, but I do think investors will probably look a bit more carefully at particular companies rather than the sector itself," he said. "Even though oil's been down, we have seen a greater number of mineral offerings, which is a bit odd but it does tell us that there are other factors at play other than oil prices."

Some of those factors include mergers and acquisitions, said the market source.

"We're definitely seeing more of these [deals] as part of mergers," he said.

In fact, Alturas Minerals Inc. announced its plans to raise up to C$4 million in a PIPE Wednesday as part of its amalgamation with Iron Lake Minerals Inc. The pricing terms of that deal have not yet been set.

Alturas is a mineral explorer based in Penetang, Ont.

Moving away from natural resources, MCF Corp. settled a $7.5 million convertible debenture deal.

Midsummer Investments, Ltd. bought the variable-rate debentures due Dec. 31, 2010. The debentures are convertible into common shares at $1.41 and the investor also received warrants for 1,875,000 shares, exercisable at $1.41 each.

Merriman Curhan Ford & Co. was the placement agent.

The company's stock remained unchanged at $1.12 (Amex: MEM). The company's stock has not moved by more than a penny since March 3 when the stock gained 4 cents to close at $1.14. On March 6, the stock fell by a penny, and the stock lost another penny on March 7.

Proceeds will be used to invest in proprietary funds managed by MCF Asset Management, LLC.

Looking to the company's earnings, MCF reported net income of $56,212 for the fourth quarter of 2005, compared with net income of $1,166,047 for the same quarter of 2004.

San Francisco-based MCF is a financial services holding company focused on investment research, capital markets services and corporate and venture services.

Kuhlman settles $2.53 million deal

Elsewhere in the PIPE market, Kuhlman Co., Inc. completed a $2,531,250 placement with two institutional investors led by Bear Stearns Asset Management.

Bear Stearns and Durban Capital, LP purchased 1,125,000 shares and received warrants for 225,000 shares, exercisable at $2.75 each.

Upon completion of the deal, Kuhlman has 23.4 million outstanding common shares.

The company's stock made slight gains on Wednesday after the deal was announced in the morning. The stock rose 10 cents, or 4.26%, on Wednesday to end at $2.45 (OTCBB: KHLM).

"We are pleased to continue to attract a high caliber of investor to our business and are looking forward to demonstrating the power of our concept and our business model as we go forward," said Scott Kuhlman, the company's president, in a statement. "Our stores are performing well, our real-estate strategy is taking shape, our balance sheet is sufficiently strong, and we are prepared to execute at a high level in order to take advantage of our growth opportunity. We continue to believe that we can create significant value for our shareholders over both the near and long term."

Proceeds will be used for the company's new store rollout plan.

Based in Minneapolis, Kuhlman operates retail clothing outlets.

Call Genie prices C$10 million offering

Among Canadian issuers, Call Genie Inc. announced its plans to raise C$10 million in a private placement of stock at C$1.00 per share.

National Bank Financial Inc. and GMP Securities LP are the placement agents for the deal, which is expected to close March 21.

The deal was announced Wednesday afternoon and the company's stock went on to lose 11.3%, or 14 cents, to end at C$1.10 (TSX Venture: GNE).

Proceeds will be used for the development of the company's Enhanced Voice Directory technology, research and marketing initiatives and working capital.

Based in Toronto, Call Genie develops a voice-based telephone directory system.

Golden Odyssey's C$2.4 million PIPE

Heading to Canadian resources offerings, Golden Odyssey Mining Inc. priced a C$2.4 million unit deal comprised of up to 14,117,647 units. The units include one share and one warrant with each warrant exercisable at C$0.22.

Proceeds will be used for drilling on the company's Morningstar and Palmetto properties and for continued work on the company's Cortez and Carlin trends. The remainder will be used for working capital.

The offering is slated to close March 14.

Golden Odyssey's stock fell 2 cents, or 7.14%, to close at C$0.26 (TSX Venture: GOE). The stock gained 7 cents March 3 to close at C$0.29, but lost 1 cent on March 6.

Trading volume of the company's stock was lighter than normal with 27,127.4 shares traded compared to the average 83,300 shares.

Toronto-based Golden Odyssey is a gold exploration company.

Favrille stock gains 8.3%

A day after announcing the pending closing of a $45,236,000 private placement Tuesday, Favrille, Inc.'s stock gained 8.3% Wednesday.

The stock advanced 44 cents to end at $5.74 (Nasdaq: FVRL).

When the deal was announced Tuesday, the stock had gained 4 cents.

In the placement, Favrille intends to sell shares at $5.26 each to institutional investors.

The price per share is equal to the company's closing stock price on March 6.

Favrille intends to use the proceeds for clinical development of the company's FavId product for B-cell non-Hodgkin's lymphoma. The remainder will be used for working capital and general corporate purposes.

San Diego-based Favrille is a biopharmaceutical company focused on immunotherapies used to treat cancer.

Genta stock advances

Genta, Inc.'s stock moved up slightly after it announced a $40.85 million direct placement on Tuesday.

The company's stock gained 14 cents, or 6.39%, to close at $2.33, but lost 2 cents in after-hours trading (Nasdaq: GNTA).

After the deal was priced early Tuesday, the company's stock gave up 9.88%, or 24 cents, to close at $2.19.

Genta plans to close the placement of shares priced at $2.15 each on March 10.

The shares will be sold under the company's shelf registration.

SG Cowen & Co., LLC is the bookrunner with Rodman & Renshaw, LLC as co-agent.

Berkeley Heights, N.J.-based Genta is a biopharmaceutical focused on treatments for cancer.

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