Ronco raises $50 million in private placements; volume grinds to a halt ahead of three-day weekend

By Sheri Kasprzak

Atlanta, July 1 - Insomniacs everywhere know about Ronco Corp. and its late-night infomercials selling everything from vegetable slicers to kitchen knives. Now the direct response marketing company has raised $50 million in a series of private placement transactions.

The offering led PIPE news Friday ahead of a three-day weekend. Volume, as a whole, however, took a dip as market insiders and issuers geared up for barbeques and fireworks.

Ronco sold 13,262,600 shares of preferred stock at $3.77 each to accredited investors.

The preferreds pay annual dividends at 5% and are convertible into common shares at $3.77 each.

Sanders Morris Harris was the placement agent.

"We're very pleased with the deal structure put together by Sanders Morris Harris and the opportunity it presents," Ronco's chief financial officer Evan Warshawsky said in a statement released Friday morning. " SMH has worked very hard on our behalf and we intend to work hard for their investors."

Ronco's stock responded to several news items surrounding it on Friday. The company's stock climbed 14.05%, or $1.25, to close at $10.15.

On Friday, Ronco also wrapped up its stock-for-stock merger with Fi-Tek, Inc. The merged company will retain the Ronco Corp. name.

Ronco's shares have also been approved for listing on the Over-the-Counter Bulletin Board under the symbol RNCP.OB.

Ronco is based in Chatsworth, Calif.

Moving to the broader market, sell-siders said volume remained quiet ahead of the Independence Day holiday.

"No one is really doing much today," said one market source. "I think maybe everyone has gone home early."

Another sell-sider said he feels issuers took care of business Thursday knowing the three-day weekend was coming up.

"Volume just took off yesterday, so I'm thinking deals were getting put out there because of the holiday," he said.

Canadian markets were closed Friday for Canada Day, dragging down volume even more.

What can be expected from PIPEs when the markets reopen on Tuesday?

One sell-sider expects more oil deals. Oil prices jumped more than $2 on Friday because of anticipated holiday fuel consumption.

"I'm sure there will be energy companies coming up next week," said the sell-sider. "Oil just rebounded a bit. That kind of push always helps things somewhat."

Oil prices rose $2.25 to close at $58.75 per barrel.

Global Hunter's C$3.15 million offering

Moving to Canada, Global Hunter Corp. announced its plans late Thursday to conduct a C$3.15 million private placement of units.

The offering includes 3.5 million units at C$0.90 each.

The units are comprised of one share and one warrant. The warrants allow for the purchase of an additional share at C$1.20 each for two years.

The Vancouver, B.C.-based mineral exploration company plans to use the proceeds for exploration and property payments on the Rabbit North and Rabbit South projects in British Columbia, the Whitehorse Copper project in the Yukon, La Corona de Cobre project in Chile and for working capital.

The company's stock crept up a penny to close at C$1.18 on Friday.

Afren plc's £7.5 million deal

In the oil sector, London-based Afren plc closed a £7.49 million stock offering Friday.

The company issued 21.4 million shares at 35p to institutional investors.

The proceeds from the offering will be used for working capital, including securing early production opportunities in Nigeria and expanding the company's West African exploration portfolio.

Based in London, Afren is an oil and natural gas company focused on properties in Africa.

Center Bancorp's stock edges down

A day after closing a $20 million private placement of stock, Union, N.J.-based Center Bancorp, Inc.'s stock closed off just a penny.

The company's stock slid to $11.34 on Friday.

After the company closed its private placement Thursday, its stock remained unchanged at $11.35.

Center sold shares at $10.50 each to make bank and non-bank acquisitions and expand its capital position.

Center Bancorp, Inc. led private placement news Thursday with the closing of its $20 million stock offering.

Center is a holding company for Union Center National Bank.

Auxilium's stock improves

Auxilium Pharmaceuticals Inc.'s stock made some improvements on Friday after closing slightly lower on Thursday.

The company's stock gained $0.02 to close at $4.79.

Auxilium's stock slid $0.13 to close at $4.77 on Thursday and on Wednesday, when the company closed a $40.18 million private placement, the company's stock remained unchanged after making early gains.

The company sold shares at $4.90 each.

The Malvern, Pa.-based Auxilium is a pharmaceutical company focused on urology and sexual health products.

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