TrueYou.Com raises $54.65 million from notes; tech offerings head up light day

By Sheri Kasprzak

New York, May 11 - Even though stocks were up in a big way on Friday, activity in the PIPE market remained light led by a few tech names.

"It's a Friday, it's getting closer to summer; those are the best reasons I can give you," according to one sellside market source. "This is just a slow time of the year and Fridays tend to be slower than usual."

The Dow Jones Industrial Average jumped 111.09 to close at 13,326.22 and the Nasdaq composite index gained 28.48 to close at 2,562.22. The Standard & Poor's 500 composite index climbed by 14.38 to settle at 1,505.85.

In the TrueYou deal, the company issued a $54.65 million secured term note to Laurus Master Fund, Ltd.

The note replaced a $25 million note that was accelerated by Laurus because of a previous default. Once interest and other fees associated with the default were cleared up by the current note, TrueYou came away from the offering with $25.9 million in cash proceeds.

The new note is due May 4, 2010 and bears interest at Prime rate plus 200 basis points.

Laurus received series D warrants for 29,276,583,452 shares, exercisable at $0.001 each, and series E warrants for 9,245,236,880 shares, also exercisable at $0.001 each. Both series of warrants expire in 10 years.

The original note, for $25 million, was issued in June 2006.

The stock has remained unmoved at $0.06 since May 3 (Pink Sheets: TUYU).

TrueYou develops appearance-enhancement software. The company has headquarters in Norwalk, Conn.

Foldera raises $1 million

In other tech news, Foldera, Inc. sold $1 million in stock, and investor Vision Opportunity Fund, Ltd. has the option to buy another $3 million in shares.

Vision bought 1,666,667 shares at $0.60 apiece.

Vision may buy another 5 million shares at the same price through July 31.

In connection with the offering, Vision agreed to cancel three outstanding warrants for a total of 7,407,408 shares held from the company's October 2006 financing. The investor received new warrants for 5,401,235 shares, exercisable at $0.60 each.

HPC Capital Management Corp. was the placement agent.

Proceeds will be used for working capital and general corporate purposes.

The stock closed unchanged Friday at $0.50 (OTCBB: FDRA).

Located in Huntington Beach, Calif., Foldera provides a web-based organization and collaboration network.

Arkados pockets $7.34 million

Another tech company raised $785,000 from two additional closings of its private placement of 6% secured convertible debentures. The latest closings bring to $7,344,355 the proceeds raised so far.

The debentures, due Dec. 28, 2008, were sold to Bushido Capital Master Fund, LP; Pierce Diversified Strategy Master Fund LLC - Series BUS; Andreas Typaldos and the Andreas Typaldos Family LP; and Crucian Transition, Inc.

The debentures are convertible into common shares at $0.85 each.

In the most recent closing, the investors received warrants for 369,413 shares, exercisable at $1.00 each through Dec. 28, 2010. Bushido also received potentially short-term warrants for 369,413 shares, exercisable at $0.85 each through the earlier of Dec. 28, 2010 or 12 months after the registration statement is declared effective.

News of the latest round of closings sent the company's stock up 28.13%, or 9 cents, to close at $0.41 (OTCBB: AKDS).

Based in Piscataway, N.J., Arkados is a fabless semiconductor manufacturer.

Novadaq upsizes deal

Moving to Canadian biotechnology offerings, Novadaq Technologies Inc. increased to C$30 million its previously announced private placement.

The offering now includes up to 4 million shares at C$7.50 each.

The deal, which is being placed through a syndicate of agents led by RBC Dominion Securities Inc., is expected to close May 23.

Proceeds will be used for ongoing product research and development efforts, sales and marketing expenses and acquisitions.

The stock remained unchanged at C$8.34 Friday (Toronto: NDQ).

Toronto-based Novadaq develops real-time medical imaging systems and image-guided therapies for the operating room.

Salazar prices deal

In Canadian resources offerings, Salazar Resources Ltd. negotiated the terms of a C$6 million private placement of units.

The deal includes up to 2 million units of one share and one warrant. The warrants are exercisable at C$4.00 each for two years.

The offering is being placed through a syndicate of underwriters led by Canaccord Capital Corp. The deal is set to close May 31.

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

The company's stock jumped 12.42%, or 41 cents, to end at C$3.71 (TSX Venture: SRL).

Located in Vancouver, B.C., Salazar is a gold exploration company.

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