Zippi Networks raises $10 million from convertibles; 3P secures $12 million

By Sheri Kasprzak

New York, July 30 - Zippi Networks, Inc. led another lethargic day in PIPEs news with a $10 million offering of convertible notes.

The notes were sold to Palm Valley Capital LLC.

The full terms of the offering were unavailable by press time on Monday.

Completion of the placement was contingent upon the company's ability to complete its product suite and was based upon specific milestones reached by the company.

"Palm Valley Capital's funding agreement and the fact that Zippi has already met its first milestone is a strong testament to the strength of our business model and our financial partner. The structure of this financing creates a win for both sides, allowing Zippie the financial strength it needs to be successful in this market," said Zippi chief executive officer Robert A. Rositano Jr. in a statement.

"This round also sends a strong message that Zippi's unique online sales structure, unprecedented pickup service and advanced handheld device are resonating strongly with the financial community and the overall marketplace."

The company's stock gained a penny on Monday to close at $1.12 (Pink Sheets: ZPNW).

San Jose, Calif.-based Zippi provides online tools and strategies to online sellers.

In the broader market, stocks rebounded after taking a beating last week.

The Dow Jones Industrial Average gained 92.84 to close at 13,358.81. The Nasdaq composite index climbed by 21.04 to end at 2,583.28, and the Standard & Poor's 500 composite index ended up 14.96 at 1,473.91.

3P Networks raises $12 million

Elsewhere in the tech sector, 3P Networks Inc. is negotiating a $12 million offering of convertible debentures.

News of the offering sent the company's stock up by a penny, or 33.33%, to end at $0.04 Monday (Pink Sheets: TPNW).

The five-year notes will be sold through underwriter Quote Platform Syndicate Inc.

The full terms of the notes were unavailable by press time Monday.

The placement is scheduled to close Aug. 13.

Proceeds will be used for strategic acquisitions of telecommunications assets and WiMax frequencies required to build its telephone, television and broadband services in the Caribbean.

New York-based 3P provides integrated telecommunications services.

Enova's offering

In other tech news, Enova Systems, Inc. announced its plans Monday to raise £5,766,800 in a placement of stock.

The deal includes 2.218 million shares at 260p each.

Closing of the deal is contingent upon Enova having its shares listed for trade on the London Stock Exchange's Alternative Investment Market.

On Monday, the stock settled down 26 cents, or 4.47%, to close at $5.45 (Amex: ENA).

Volume was down with 5,100 shares traded compared with the average 16,268.8 shares traded.

Enova Systems, based in Torrance, Calif., develops fuel cell, hybrid and environmentally friendly power components used in automobiles.

Advanced Viral's stock drops

In secondary market news, Advanced Viral Research Corp.'s stock slipped by 6.25% on Monday after the company raised $2.75 million in 9% secured convertible debentures.

The stock fell by less than a penny to close at $0.03 Monday (OTCBB: ADVR). On Friday, the stock also lost less than a penny, or 5.88%, to end at $0.03.

Volume was off with just 124,500 shares traded compared with the average 1,547,280 shares traded.

On Friday, volume was 2,547,777 shares traded compared with the average 1,504,740 shares.

Both series of debentures are due July 24, 2010. The series A debentures are convertible into common shares at the lesser of $0.0312 each or 95% of the lowest volume weighted average price for the 30 consecutive trading days before conversion. The series B debentures are convertible into common shares at the lesser of $0.0262 each or 95% of the lowest VWAP for the 30 consecutive trading days before conversion.

Cornell also received warrants for 24,038,462 shares, exercisable at $0.0312 each, and 76,335,878 shares, exercisable at $0.0262 each. Both sets of warrants expire in five years.

Advanced Viral, based in Yonkers, N.Y., develops treatments for cancer.

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