Icop Digital wraps $3.85 million stock deal; soaring gold prices spark surge in PIPE offerings within sector

By Sheri Kasprzak

New York, Dec. 9 - Icop Digital Inc. capped off the week in PIPEs with the settlement of a $3,848,000 stock offering, while in Canada climbing gold prices inspired another load of private placement deals among gold explorers.

In the Icop offering, the Lenexa, Kan.-based company issued 650,000 shares at $5.92 each to institutional investors. The investors received redeemable warrants for 227,500 shares. The warrants are exercisable at $6.19 each through July 8, 2010.

Paulson Investment Co., Inc. was the placement agent for the deal.

After the offering was announced Friday morning, the company's stock dipped 5 cents, or 0.7%, to close at $7.13.

"This financing represents a significant endorsement of the continuing execution of our growth strategy, and will help ensure that Icop has sufficient inventory on hand to meet the growing demand we're experiencing for the Icop Model 20/20 digital in-car video recording system," said company president and chief executive officer Dave Owen in a statement.

Icop completed another private placement in March for $2.2 million. In that deal, the company issued 8% secured promissory notes

In its most recent earnings report, Icop reported a net loss of $499,477 for the quarter ended Sept. 30, compared with a net loss of $770,039 in the same quarter of 2004.

Icop develops security, surveillance and communications products used in the public and private sectors.

Elsewhere in the PIPE market, gold prices continued to rise to their highest levels since the early 1980s, gaining $7.10 to end the day at $526.30 per ounce.

The surging prices brought on a new block of private placements in the gold sector.

Montreal-based gold explorer Semafo Inc. led the offerings with a C$65.2 million deal comprised of 40 million shares at C$1.63 each.

The offering was originally announced without pricing terms as a C$36.1 million issue.

Haywood Securities Inc., Paradigm Capital Inc., Blackmont Capital Inc. and Desjardins Securities Inc. are the placement agents for the offering, which his scheduled to close Dec. 20.

Proceeds will be used for debt retirement, the partial reduction of the company's 2006 gold hedge book, the startup of the Mana project and general corporate purposes.

The company's stock closed down C$0.07, or 3.74%, at C$1.80 on Friday.

EnerTeck raises $3 million

EnerTeck Corp. wrapped a $3 million private placement of stock Friday.

The company sold 2.45 million shares to BATL BioEnergy LLC and issued warrants for 1 million shares. The warrants are exercisable at $2.00 each for five years.

Proceeds will be used for EnerTeck's proposed acquisition of Ruby Cat Technology. The rest will be used for new project development, debt repayment and additions to the company's sales and marketing staff, the company said.

"I am pleased that an investor as sophisticated as BATL has decided to move ahead with its investment in our company," said Dwaine Reese, the company's CEO, in a statement. "We are pleased to have significantly enhanced our cash and liquidity position as a result of this investment and coupled with the additional cash forthcoming from warrant exercise; we do not anticipate any further offerings for some time.

"We believe that the validation of our business model through the rigorous due diligence process, coupled with successful proof of performance tests completed by large commercial consumers of diesel fuel, place EnerTeck at the forefront of energy technologies companies globally. I look forward to moving ahead with developing sales and new markets for our products."

Based in Stafford, Texas, EnerTeck makes a fuel-borne catalytic engine treatment for diesel engines.

On Friday, EnerTeck's stock closed down C$0.08 to end at C$2.30.

Etruscan to raise C$10 million

Heading back to the gold sector, Windsor, N.S.-based Etruscan Resources Inc. is gearing up to close a C$10 million private placement with 20 investors.

The company plans to sell 7,407,407 units at C$1.35 each on Dec. 14. The units are comprised of one share and one warrant. The warrants are exercisable at $1.75 each for two years.

Some of the proceeds will be used for construction at the Youga gold mine in Burkina Faso.

Etruscan's stock gained C$0.06 to close at C$1.49 Friday.

Coral Gold Resources Ltd., a Vancouver, B.C.-based gold exploration company, priced a private placement for up to 1.5 million shares at C$3.00 each for C$4.5 million.

Gold company executive Robert McEwen, chairman of U.S. Gold Corp. and Lexam Explorations Inc. and chairman of Goldcorp Inc., agreed to buy up to 1.25 million of the units.

After the offering was announced Friday morning, the company's stock surged C$1.80 to end at C$3.55. The company's stock on the over-the-counter Bulletin Board gained 58.97%, or US$1.15, to closed at US$3.10.

Proceeds will be used for exploration and development on the company's gold properties and for working capital.

Portal Resources Ltd., another Vancouver-based gold company, priced a C$2 million offering of 4 million units.

The units include one share and one half-share warrant. The whole warrants are exercisable at C$0.75 each for one year.

The deal is being offered on a non-brokered basis.

The company's stock closed up C$0.04 to end at C$0.59 Friday.

Proceeds will be used for exploration on the company's gold/silver and copper/gold projects in Argentina. The rest will be used for working capital.

GTC stock gains 2.5%

A day after announcing the imminent completion of a $16,648,000 direct placement of stock, GTC Biotherapeutics, Inc.'s stock ended up Friday.

The company's stock gained 4 cents, or 2.48%, to settle at $1.65.

On Thursday, when the offering was announced, the stock closed down 10.56%, or $0.19 to end at $1.61.

GTC plans to sell shares to institutional investors under its shelf registration at $1.78 each.

GTC, based in Framingham, Mass., is a biotechnology company focused on developing therapeutic proteins through transgenic animal technology.

Genius Products stock closes up

Genius Products, Inc.'s stock closed up slightly Friday.

The company's stock gained 2 cents, or 0.91%, to end at $2.22 on Friday after gaining 20 cents on Thursday.

On Thursday, the company completed a private placement for $2.00 each.

Based in Solana Beach, Calif., Genius Products develops and distributes CDs and DVDs.

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