Sun Bancorp seeks $100 million; First Sound wraps first tranche; Cortex Gold heralds unit sale

By Stephanie N. Rotondo

Portland, Ore., July 8 - Sun Bancorp Inc., the holding company for Sun National Bank, announced a $100 million private placement on Thursday.

The company is selling both common and preferred shares in the transaction. Proceeds will be used to strengthen operations and, in reaction to the news, the company's stock gained nearly 40%.

Meanwhile, First Sound Bank, another financial institution, said it had raised more than $3 million in an initial tranche of a private placement of stock. The company is seeking to raise a total of $6 million.

Corex Gold Corp. is looking to raise C$4.35 million from a private placement of units. Gammon Gold Inc. has already subscribed for a substantial portion of the units.

Also, UTEK Corp., also known as Innovaro, brought a $3.8 million registered direct offering to market. Investors will receive stock and warrants for their participation in the financing.

Sun Bancorp seeks $100 million

Sun Bancorp will raise $100 million via a private placement of common and mandatorily convertible preferred stock, according to a press release.

Investors participating include private equity funds affiliated with WL Ross & Co. LLC, as well as the company's founding shareholders, the Brown family, among others.

Both the common and preferred shares will be sold at $4.00 per share. The price represents a 10.8% premium over the July 7 closing share price of $3.61.

The company will use the new capital to strengthen and expand current operations and to pursue growth opportunities.

"This transaction further strengthens our capital base, and ensures we have all the tools necessary to support our customers," said Thomas X. Geisel, president and chief executive officer, in the release. "This is an important step forward for the bank, our shareholders and the communities we serve.

"As the second-largest commercial bank headquartered in New Jersey, our goal is to be in a position to take advantage of a rebounding economy and in turn, contribute to its recovery," Geisel added.

Sun Bancorp's stock (Nasdaq: SNBC) jumped $1.42, or 39.34%, to $5.03. Market capitalization is $117.75 million.

Sun Bancorp is a Vineland, N.J.-based bank.

First Sound settles first tranche

Seattle-based First Sound Bank said it had settled an initial tranche of its previously announced private placement of stock, taking in just over $3.2 million.

The company is looking to raise a total of $6 million.

First Sound is selling common shares at $0.10 per share in the transaction. The price per share represents a 50% discount to the company's July 7 closing share price of $0.20.

The company also said that it extended the deadline by which it wants to raise the remaining funds to July 30.

Calls seeking comment were not returned Thursday.

First Sound's shares (OTCBB: FSWA) ended unchanged at $0.20.

First Sound Bank is a state-chartered commercial bank.

Corex heralds unit sale

Vancouver, B.C.-based Corex Gold will conduct a non-brokered private placement of units in an effort to raise C$4.35 million, the company announced.

Gammon Gold Inc. has agreed to purchase C$3.2 million of the units.

Corex will issue a total of 6.4 million units - 4.7 million of which will be purchased by Gammon - at C$0.68 per unit. The units will hold one common share and one half-share warrant.

Whole warrants are exercisable at C$0.90 for two years. The strike price represents a 32.35% premium over the July 7 closing share price of C$0.68.

Upon completion of the offering, Gammon will hold 12% of the company's outstanding stock, 14% on a fully diluted basis.

"This strategic investment from Gammon is positive recognition for the value of Corex's Santana project," said Craig Schneider, president and CEO, in a press release. "We are very pleased to have Gammon Gold, a company which has proven expertise in the development of gold projects in Mexico, as an investor and a contributor to our TAB."

Proceeds will be used for the development of the Santana project, as well as for working capital.

Corex's equity (TSX Venture: CGE) held steady at C$0.68. Market capitalization is C$21.12 million.

UTEK prices direct deal

UTEK, doing business as Innovaro, priced a $3.8 million registered direct offering of stock.

The Plant City, Fla.-based company will sell approximately 1.48 million common shares at $2.565 per share. The share price represents a 26.5% discount to the July 7 closing share price of $3.49.

Additionally, investors will receive series A and B warrants. The series A warrants - which are good for an additional 1.48 million shares - are exercisable at $3.43 for five years. The series B warrants - equal to 893,519 additional shares - are exercisable at $0.01 after 60 days if the stock's market price is less than $2.565.

Proceeds will be used to continue development of the company's innovation management platform, as well as for general corporate purposes and for potential acquisitions. Settlement is expected by July 12.

The company did not return calls seeking comment on Thursday.

UTEK's shares (Amex: INV) fell $1.30, or 37.25%, to $2.19. Market capitalization is $25.84 million.

UTEK is a developer of technologies that retrieve data from universities and research laboratories.

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