Volume improves as stocks rise; Endocare wraps $15.6 million private placement

By Sheri Kasprzak

Atlanta, March 14 - As stocks made a recovery from losses late last week, private placement volume also rebounded slightly, sell-siders said Monday.

"I think things are improving," said one sell-side source. "Stocks were up today so that helps us out some. You have to remember that this market is very much sector-driven, so it really depends on how well a particular industry is doing."

The Dow Jones Industrial Average finished the day up 30.15 at 10,804.51; the Nasdaq composite index was up 9.44 to close at 2,051.04 and the S&P 500 ended the day up 6.75 to close at 1,206.83.

Oil prices also continued to climb Monday. Oil closed up $0.52 at $54.95 per barrel.

In Canada, resources companies like Dianor Resources Inc. and Kodiak Exploration Ltd. announced C$5 million and C$2,823,600 offerings, respectively.

According to one sell-side source in Canada, mineral and resources companies' stocks have been performing well - a fact that makes private placement issuance more appealing to companies seeking additional capital.

"Of course they're going to put deals out there when they know they can get better pricing," the Canadian sell-sider said.

Heading up private placement news Monday was the closing of a $15,609,997 offering from Endocare, Inc.

The company issued 5,635,378 shares at $2.77 each.

The investors also received warrants for 1,972,374 shares at $3.50 each and 1,972,374 shares at $4 each, exercisable for five years.

After announcing the closing of the deal Monday morning, Endocare's stock jumped $0.20 to close at $3.20.

"It's great for them," said one market source familiar with the deal. "They've just gotten favorable results from a study on one of their technologies, which is something investors like to see. It indicates stability, among other things.

"So, yeah, I think this went well for them. If you look at the deal, it's priced right in line. Actually, maybe at a slight premium."

"We are very pleased to expand our investor base and to strengthen our balance sheet with this new equity capital, which we will use for working capital purposes and to invest in our market-development efforts," said Craig Davenport, the company's chairman and chief executive officer, in a statement. "We can now continue our efforts to rapidly build adoption in prostate and renal cancer cryoablation, as well as investing additional capital to continue our entrance into interventional radiology and oncology markets treating palliative bone pain and cancers of the lung and liver."

Greenway Capital Ltd. led a syndicate of underwriters.

Based in Irvine, Calif., Endocare develops technologies for tissue and tumor ablation.

Ener1 raises $14.22 million

Ener1, Inc. wrapped a private placement of convertible debentures for $14,225,000.

The debentures mature in four years, bear interest at 7.5% annually and are convertible into common shares at $1 each.

The investors will also receive warrants for 4,267,500 shares at $1.15 each and 2,845,000 shares at $1.25 each, exercisable for five years.

"This financing will help us accelerate Ener1's progress, which has already been substantial," said Kevin Fitzgerald, the company's chairman and chief executive officer, in a statement.

"We have strategic alliances in place with major companies, such as Delphi Corp., that are leading suppliers to the markets that we are targeting. These strategic relationships will help us speed commercialization of our technologies. We anticipate shipping batteries in production quantities before the end of 2005. It is an important ongoing vote of confidence that investors from our 2004 debenture financing are participating in this private placement."

Based in Ft. Lauderdale, Fla., Ener1 develops and markets technologies for lithium batteries and battery packs, fuel cell components and nanotechnology-based materials. The proceeds from the private placement will be used for corporate operations and the commercialization of technologies.

The company's stock closed down $0.05 at $0.70 Monday.

Glowpoint closes direct offering

Glowpoint, Inc. raised $10 million in a direct placement, the company said Monday.

The offering included 6,666,667 shares at $1.50 each.

The company also issued warrants for 2,666,667 shares at $2.40 each.

The shares were sold under Glowpoint's shelf registration.

"It's not bad," said one market source. "If you ask me, for a direct deal, it's priced a little low. I think with a company like this, they're fairly new in the market so they may be trying to just pull in a capital infusion."

Based in Hillside, N.J., Glowpoint is an internet protocol-based video communications service provider. The proceeds will be used for working capital.

On Monday, Glowpoint's stock closed down $0.17 at $1.60.

BJ's Restaurants' stock continues climb

After announcing the closing of a $42.625 million private placement Friday, BJ's Restaurants Inc.'s stock continued to rise Monday.

The company's stock gained $0.99 to close at $18 Monday.

On Friday, when the deal was first closed, the company's stock gained $0.53 to close at $17.01.

The company issued shares at $15.50 each.

"The pricing on this deal was just really good," said one market source familiar with the offering. "I think their plans for expansion also help things [the rise in stock] and certainly helped with the pricing."

Based in Huntington Beach, Calif., BJ's operates 35 casual dining restaurants.

Royal Standard up after greenshoe

Royal Standard Minerals Inc.'s stock made slight gains Monday after the company announced it was adding a greenshoe to its previously announced C$2.45 million private placement.

The company closed up C$0.025 Monday at C$0.37.

On Friday, when the offering was first announced, the company closed down C$0.005 at C$0.345.

Monday, placement agent Canaccord Capital Corp. received an over-allotment option on the deal for up to 3 million additional units.

The company plans to sell units of one share and one half-share warrant at C$0.35 each.

"The greenshoe definitely helped [their stock]," said a market source who had seen the deal.

Based in Sparks, Nev., Royal Standard is a gold exploration and development company.

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