Solar Power shares fall on $12 million deal; investor sings Etruscan's praises despite setback

By Devika Patel

Knoxville, Tenn., Sept. 23 - Photovoltaic technology company Solar Power, Inc. (OTCBB: SOPW) saw a 27.78% crash of its share price, or 50 cents, Wednesday after announcing it would conduct a $12 million private placement. The shares closed at $1.30, indicating that the company's dilutive plans were not well received by investors.

Deer Consumer Products, Inc. (Nasdaq: DEER), on the other hand, boasted a 19.3% jump in its share price, or $2.75, Wednesday, closing at $17.00, after filing an 8-K with the Securities and Exchange Commission reporting that it had completed a $15 million placement of units.

Etruscan Resources Inc. also saw a rise in share price after it said it negotiated a $43 million private placement of stock with investor Endeavour Financial Corp. The company's shares (Toronto: EET) rose 15.38%, or 6 cents, closing at C$0.45 Wednesday. The investor said it saw Etruscan's underlying value, despite the company's current financial challenges.

In other PIPE news, Shore Gold Inc. said it would conduct a C$27.5 million private placement of shares, aimed at raising cash for its Star Kimberlite and its Orion Kimberlite Cluster projects.

Canacol Energy Ltd. priced a stock offering Wednesday, but lifted it by C$10 million to C$30 million a few hours later, due to strong investor support. Meanwhile, Australia's Probiotec Ltd. said it sold approximately A$12 million of its stock, which will be used to expand operations.

Solar Power to see $12 million

Roseville, Calif.-based Solar Power said it will take in $12 million in a private placement with agent Deutsche Bank.

The deal, to raise funds for general corporate purposes, met with a strong market reaction, as the company's shares plunged, closing at $1.30 on Wednesday with a volume of over 362,000 shares, from $1.80 at close Tuesday. The company has a market capitalization of $48.3 million.

"The company intends to use the net proceeds from this financing for general corporate purposes, including working capital," chief executive officer Stephen Kircher stated. "Our pipeline of opportunities has grown significantly in all of our vertical sales channels. This additional equity will allow us to capitalize on these opportunities and continue our business growth."

Shore Gold: C$27.5 million

Shore Gold said it has hired a syndicate of agents led by RBC Capital Markets for a C$27.5 million private placement of shares.

The company will sell 14.3 million common shares at C$1.05 per share and 10 million flow-through common shares at C$1.25 per share by Oct. 9.

Proceeds will be used for development of Shore's Star Kimberlite and its Orion Kimberlite Cluster and for general corporate purposes.

The Saskatoon, Saskatchewan-based precious metals explorer's shares (Toronto: SGF) fell 8 cents, or 6.67%, closing at C$1.10.

Deer Consumer seals $15 million

Deer Consumer Products concluded a $15 million private placement of units by selling 1.5 million units of one common share and a three-year warrant for 30% of a share at $10.00 apiece. The whole warrants are exercisable at $10.00.

The Nanshan, China, household appliances manufacturer said proceeds will be used for Chinese domestic market expansion and working capital purposes.

Etruscan announces $43 million

Etruscan Resources plans to raise $43 million through a stock sale at C$0.30 per share. Endeavour Financial, the investor, commended the Windsor, N.S., gold explorer's long-term potential, and said it was pleased with the opportunity despite Etruscan's short-term cash needs.

"Endeavour has a gold-focused investment strategy to create significant value through strategic investments in gold producers with a vision of creating an intermediate sized gold growth company," Endeavour's chief executive officer Neil Woodyer stated.

"We believe in long-term rising gold prices and see investment opportunity in companies, like Etruscan, facing short-term financial challenges but with quality underlying gold mining assets. We look forward to working with the Etruscan team to drive the growth of the company," Woodyer said.

"Etruscan is very pleased that Endeavour has decided to make this strategic investment in Etruscan," the issuer's president Gerald J. McConnell said in a press release.

"Endeavour is well known in the global mining markets for its ability to implement significant and rapid growth plans for its clients, often leading to premium market valuations. Endeavour's track record of success includes its role in the creation and growth of Wheaton River, which ultimately became Goldcorp. We welcome Endeavour's ongoing active role in guiding Etruscan to drive growth and share value," McConnell said.

Canacol to sell C$30 million

Calgary, Alta., onshore oil exploration company Canacol Energy lifted a C$20 million stock sale to C$30 million with a C$10 million greenshoe a few hours after pricing due to demand.

The company will sell 107,143,000 common shares at C$0.28 apiece by Oct. 15 via lead agent Canaccord Capital Corp. The agent syndicate also includes FirstEnergy Capital Corp.

"We are very pleased with the strong market support evident from this offering," president and chief executive officer Charle Gamba stated. "The proceeds from the offering will be used to fund the corporation's development and exploration programs into 2010, including the programs in Guyana and Brazil."

The company's shares (TSX Venture: CNE) were unchanged Wednesday, closing at C$0.315.

Probiotec wraps A$12 million

Probiotec, a Laverton North, Australia, manufacturer of pharmaceuticals, foods and nutraceutical products, said it completed a A$12 million private placement of shares, selling approximately 1.8 million ordinary shares at A$2.55 apiece.

Proceeds will be used to expand manufacturing operations, improve the group's supply chain processes and take advantage of strategic opportunities as they may arise.

"This capital raising will enable the group to rationalize its operations whilst at the same time securing the ability of the group to grow and expand," Probiotec's managing director Wayne Stringer said in a press release. "The expansion of manufacturing operations will significantly improve its supply chain arrangements and drive a range of efficiencies and cost improvements into our business."

The company' shares (Australia: PBP) remained unchanged at A$2.69 Wednesday.

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