Global Med signs $8 million stock sale, Advanced Photonix enters market with $5 million deal

By Sheri Kasprzak

Atlanta, Oct. 12 - Companies from a wide range of industries took to the private placement market Tuesday following a sluggish start to the week on Monday.

An information technology company led the market with an $8 million stock purchase agreement.

Global Med Technologies Inc. said it will sell $8.0 million of common stock over 32 months at the rate of up to $250,000 of its stock a month to Fusion Capital Fund II, LLC.

The stock will be sold to Fusion under Regulation D at the market price at the time.

"This new financing with Fusion Capital will provide the company with a value added partner and a flexible source of capital to help pay down preferred debt and any other debt obligations, as well as to help fund ongoing expansion and operational costs," said Mick Ruxin, chairman and chief executive officer of Global Med, in a news release.

"We are very excited about this transaction and look forward to working with Fusion Capital to explore opportunities that we believe the company can leverage to expand and further develop its operations, products, and market share."

Global Med, a Denver, Colo.-based medical information technology company, will use proceeds to fund its expansion and operating costs.

Advanced Photonix's $5 million deal

Advanced Photonix Inc. entered into a definitive agreement with three institutional investors for three-year senior convertible notes totaling $5 million.

The notes are convertible at the option of the holder into shares of common stock at a conversion price of $1.9393 per share. The notes will mature on Sept. 30, 2007.

The company, a Camarillo, Calif. optoelectronics producer, plans to use the funds to continue growth and make acquisitions.

Advanced Photonix's stock closed up $0.09 Tuesday at $1.79.

Elite Pharmaceuticals' convertibles

Over in the pharmaceutical business, Elite Pharmaceuticals Inc. finished up a $4.66 million sale of series A convertible preferred stock to institutional and private investors Tuesday.

The notes convert at a price of $1.23.

Chief executive officer and chairman Bernard Berk said in a statement the company plans to use the funds to develop more pain treatments and other products.

Elite Pharmaceuticals is a Northvale, N.J.-based company focused mainly on developing oral controlled-release products.

Tuesday, its stock closed up $0.15 at $1.75.

Axeda Systems placement

Axeda Systems Inc. finished a $4.5 million private placement.

The Mansfield, Mass. software company sold the convertible notes to Laurus Master Fund. The notes are convertible into 9,375,000 shares at $0.48.

"The transaction structure provides for issuance of our shares at a premium to current market price and has provided us with additional balance sheet strength to extend upon our leadership position," said chairman and chief executive officer Robert Russell in a statement.

PharmaFrontiers completes $1.61 million

Another pharmaceutical company, Tomball, Texas-based PharmaFrontiers, wrapped up a $1.61 million private placement of 15% exchangeable convertible subordinated notes.

The offering was sold to 17 investors, according to an SEC filing.

PharmaFrontiers' stock closed up $1.50 Tuesday at $9.

Carbiz sells $1.03 million

Carbiz, a Sarasota, Fla. used-car dealership software and business consulting company, finished up a $1.03 million convertible financing.

The brokered deal will allow the company to finance its credit center business, according to a Carbiz statement.

The company, which is based in both Sarasota and Toronto, provides Internet and software to the automotive industry. Its stock closed up C$0.005 Tuesday at C$0.235.

Canadian deals

Vancouver, B.C. energy company Transeuro Energy Corp. plans to raise C$4 million in a nonbrokered private placement financing.

The financing will fund project acquisitions on the Crimea Peninsula and for working capital.

The company's stock closed unchanged Tuesday at C$0.75.

In other Canadian action, Peer 1 Network Enterprises finished a C$2 million non-brokered private placement.

Peer 1, also a Vancouver company, is an internet bandwidth provider. Peer 1's stock closed unchanged Tuesday at C$0.38.

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