Healthaxis closes $5 million private placement; outlook for volume good, sell-siders say

By Sheri Kasprzak

Atlanta, May 16 - Healthaxis Inc. led private placement news in the United States to kick off the week as volume continued to suffer from dismal stocks from last week.

While sell-siders said the remnants of a sour stock market from last week kept issuance down Monday, they believed the outlook for volume looks good.

"You had really bad conditions last week and that kept issuers out of the game, so I think we're coming back this week," said one sell-sider. "Stocks improved today and that's going to help somewhat. I'd say look for more deals tomorrow [Tuesday]."

The Dow Jones Industrial Average gained 112.17 to close at 10,252.29; the Nasdaq composite index ended up 17.65 at 1,994.43 and the S&P 500 closed up 11.64 at 1,165.69.

"It [volume] was kept down I think because of the stock situation last week," said another sell-sider. "I don't think things will be quite as bad this week. Of course, it's always wait and see, but things are looking up already."

Meanwhile Healthaxis company sold 2,222,222 shares at $2.25 each to Tak Investments Inc., which also received a put/call warrant for the same number of shares, exercisable at the same price for two years.

Healthaxis may increase the warrant to 3,333,333 shares in order to fund an acquisition.

The investor received warrants for 25% of the shares originally purchased, for 25% of the shares purchased under the put/call warrant at $2.70 each and a third warrant for 25% of the shares purchased originally plus the shares purchased under the put/call warrant, exercisable at $3.15 each for two years.

After the closing was announced Monday morning, Healthaxis's stock gained $0.07 to close at $1.87.

Based in Irving, Texas, Healthaxis provides technologies used for business process outsourcing, and claims and administration services for health benefit administrators and health insurance claims processors.

Broadcast wraps $3 million deal

Broadcast International, Inc. completed a $3 million private placement of convertible notes with four institutional investors Monday.

The notes bear interest at 6% annually, mature on May 16, 2008, and are convertible into common shares at $2.50 each.

The investors have additional investment rights for up to $3 million in principal of the notes.

Broadcast also issued class A warrants for 600,000 shares, exercisable at $2.50 each for five years and class B warrants for 375,000 shares, exercisable at $4 each for five years.

"This new funding will enable BI to accelerate the development of CodecSys and apply for additional patents," said Rod Tiede, the company's chief executive officer, in a statement. "We will also expand sales and marketing, as well as increase operational capabilities to accommodate imminent new business opportunities in our core services."

Based in Salt Lake City, Broadcast provides video-powered internet protocol, digital satellite, internet streaming and other wired and wireless network distribution services. The proceeds will be used for working capital and capital expenses.

eNucleus raises $2.08 million

eNucleus, Inc. closed a private placement for $2.08 million Monday.

Barron Partners LP bought 8 million shares at $0.26 each and also received warrants for 2 million shares.

The warrants are exercisable at $0.35 each for five years.

As a condition of the offering, eNucleus dropped the strike price on warrants for 3.5 million shares issued in a stock purchase agreement on Aug. 13, 2004. The strike price on the warrants will now be $0.35 per share from $0.60 each.

"Looks fair," said one market source who saw the deal. "Their stock was up today on the deal, so not bad."

After the deal was announced Monday morning, eNucleus's stock gained a penny, or 3.33%, to close at $0.31.

"This capital raise was central to our strategic growth plan, which we expect will enable us to achieve a second consecutive full year of profitability and give us the opportunity to generate solid, long-term returns for our shareholders," said John Paulsen, the company's chief executive officer, in a statement.

"We expect that Barron Partners' decision to increase its long-term equity investment will have a positive impact on our growth strategy and balance sheet. Effectively, Barron Partners will own 28% of our outstanding shares. We are pleased to be in the position to continue to acquire technologies that fit with our core supply chain management business."

Based in Chicago, eNucleus is a supply chain software and service provider. The proceeds will be used for working capital and general corporate purposes.

Quest wraps C$7.5 million deal

North of the border, Quest Capital Corp. said it has completed a private placement of stock for C$7.5 million.

The offering included 5 million shares at C$1.50 each.

After the closing was announced late Monday, Quest's stock ended unchanged at C$1.87.

Based in Vancouver, B.C., Quest is a merchant bank.

Onyx Software's stock makes gains

Onyx Software Corp.'s stock made gains Monday after the company closed a $7,853,796 private placement.

The company's stock rose $0.04 to close at $2.95 Monday.

After the deal closed Friday, Onyx's stock gained $0.13, or 4.68%, to close at $2.91 and gained another $0.20 in after-hours trading.

Onyx sold shares sold at $2.78 each to three directors and the company's chief financial officer.

"It was a well-priced deal sold to insiders," said one market source who has been following the offering. "It bodes well for their stocks, at least in the short term."

Based in Bellevue, Wash., Onyx develops software to automate customer processes for corporate clients. The proceeds will be used for working capital and general corporate purposes.

Marauder's stock continues to dive

After nixing its plans to raise C$26 million in a private placement of flow-through shares and units, Marauder Resources East Coast Inc.'s stock continued to fall Monday.

Marauder's stock slipped C$0.28, or 28.28%, Monday to close at C$0.71.

After the company announced its plans to not proceed with its private placement on Friday, the company's stock dipped C$0.31, or 23.85%, to close at C$0.99.

Marauder, a Calgary, Alta.-based oil and natural gas company, had planned to sell flow-through shares and units of one share and one half-share warrant, both priced at C$1.50 each.

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