Private placement volume eases at week's end; Tiger Telematics raises $19.5 million

By Sheri Kasprzak

Atlanta, Feb. 11 - As the week wrapped up, private placement volume trailed off slightly, despite higher stocks.

"It's just Friday," joked one sell-sider. "It's really pretty typical. We've had pretty good volume, with its normal ups and downs, but things seem to get slower at the end of the week."

"There's nothing in particular," said another sell-side source when asked what might be affecting volume. "Just not much out there."

Stocks made gains Friday. The Dow Jones Industrial Average ended up 46.40 to close at 10,796.01, the Nasdaq composite index closed up 23.56 at 2,076.66 and the S&P 500 edged up 8.29 to close at 1,205.30.

Leading action in the United States Friday was Tiger Telematics Inc. with word that it wrapped up its $19.5 million private placement.

The company sold 1,116,133 shares at prices ranging from $15 each to $25 each to sophisticated, accredited foreign investors and foreign corporations. The higher sums were received as its price per share increased.

The offering also included a stock swap with a shareholder. The company sold 100,000 shares at $25 each to the shareholder, who sold shares that were over one year old to an investment fund for $25 each. The shares sold by the shareholder were then remitted for newly issued shares at a discounted price.

Tiger Telematics, based in Jacksonville, Fla., designs, develops and markets mobile telematic systems. The company plans to use the majority of the proceeds to buy game content for its Gizmondo multi-entertainment device and for future marketing expenses.

The company's stock surged $1 Friday to close at $28.80.

Airtrax closes $5 million deal

Airtrax, Inc. closed a $5 million private placement of convertible promissory notes.

The notes mature Aug. 10, 2005 and carry interest at 6%, payable either in stock at the conversion price in effect at maturity or in cash. The notes are convertible into common shares initially at $1.30 each.

The investors also received class A warrants for 1,923,077 shares and class B warrants for 961,538 shares. The class A warrants are exercisable at $1.85 each for five years and the class B warrants are exercisable at $2.11 each for five years. The warrants are exercisable upon the conversion of all of the notes.

"If you ask me, it's priced at a big discount," said one market source. "It's really hard to say why it's priced so low."

The conversion price is a 41% discount to the company's closing price Feb. 10.

First Montauk Securities Corp. was the placement agent in the deal.

Based in Hammonton, N.J., Airtrax develops and manufactures a wheel capable of turning in every direction.

On Friday, Airtrax's stock closed up $0.17 at $2.37.

DynTek closes $7.7 million deal

DynTek, Inc. finished a private placement for $7,696,000.

The company issued 14.8 million shares at $0.52 each to institutional investors. The deal was priced at a 6% discount from the Feb. 9 closing price of $0.56.

The investors also received warrants for 3.7 million shares at $0.66 each for five years.

"This infusion of capital will help DynTek make additional operational investments to drive our organic growth and meet our financial targets," said DynTek's executive vice president and chief financial officer, in a statement.

"We are beginning to see benefits from the integration of our recent acquisitions and the implementation of our strategic plan. We are pleased with institutional investor response to our strategy, the participation of several leading firms in this transaction and the demand for the offering."

B. Riley & Co., Inc. was the placement agent in the offering.

Based in Irvine, Calif., DynTek is a technology services company focused on government, education and mid-market customers. The proceeds will be used for growth capital and strategic acquisitions.

The company's stock closed up $0.01 at $0.56 Friday.

D-Box plans C$2 million deal

D-Box Technologies Inc. announced its plans to head to the private placement market with a C$2 million offering.

The company plans to sell up to 8 million and at least 2 million units at C$0.25 each.

The units include one share and one half-share warrant. The full warrants allow for an additional share at C$0.55 each for one year.

"It's priced well," said one market source who had seen the deal. "I think it will go well. [It's] a small discount and the warrants look good. I suspect there will be solid demand."

Montreal-based D-Box designs and manufactures motion simulators for the home entertainment industry. The proceeds will be used for commercialization and the development of new products.

On Friday, D-Box's stock closed down C$0.03 at C$0.27.

Micromem raises $1.5 million

Micromem Technologies Inc. said it sold 2,374,834 units in a private placement for proceeds of $1.5 million.

The units were sold at $0.63 each and include one share and one warrant.

The warrants allow for an initial share and an additional share exercisable upon the exercise for the initial warrants. The initial warrants allow for an additional share at $0.63 each for one year and the additional warrants are exercisable at the same price for two years.

"We are pleased to have completed this financing, which will support the technological efforts being championed by ... our team at the University of Toronto," said Micromem's president and chief executive officer Joseph Fuda, in a statement.

Based in Toronto, Micromem researches and develops Magnetic Random Access Memory. The proceeds from the private placement will be used for filing patent applications and for working capital and operational requirements.

On Friday, Micromem's stock closed down $0.02 at $0.92.

Energy Conversion's stock drops

A day after announcing its plans to raise $87,802,500 in a private placement, Energy Conversion Devices Inc.'s stock continued to fall.

The company's stock ended Friday down $0.08 at $18.10. On Thursday when the deal was announced, its stock plummeted $1.57 to close at $18.18.

The company is selling shares at $17.25 each in the private placement.

The deal is being conducted for subsidiary ECD Ovonics.

Based in Rochester Hills, Mich., the ECD Ovonics is a technology company in the energy and information fields focused on making new products from amorphous, disordered and related materials.

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