SpaceDev raises $4.4 million in private placement of stock; Pay88 shares rise; Sleep Holdings adds board member

By LLuvia Mares

New York, Sept. 19 - SpaceDev, Inc. announced Thursday it plans to raise $4.4 million through a private placement of stock.

The company intends to sell 7,095,566 shares to a group of investors at $0.62 each. The price was determined as a premium of 11% to the closing price of the stock Sept. 12, which was $0.56 (OTCBB: SPDV). The stock closed at $0.70 on Wednesday.

OHB Technology AG and MT Aerospace AG were the investors.

"We are very pleased to welcome OHB Technology and MT Aerospace as our newest business partners and investors to the growing SpaceDev family. OHB has a long and successful business history in Europe and also has worked on a number of U.S. government programs, including the International Space Station and working with NASA on SOFIA, the next generation airborne observatory," said Mark N. Sirangelo, company chairman and chief executive officer, in a press release.

"We believe this new SpaceDev, OHB and MT Aerospace alliance will lead to significant new revenues, manufacturing opportunities and markets for our products, technologies and expertise in the European aerospace marketplace. At the same time, we believe that OHB and MT Aerospace will be able to utilize our existing relationships and manufacturing capabilities to further their business in the US."

"We see significant upside potential in the future of SpaceDev" said Marco Fuchs, OHB Technology chairman and chief executive officer, in a press release. "We believe SpaceDev will be an excellent long term association for our group."

SpaceDev expects to use the proceeds for general working capital purposes.

Hans Steininger, MT Aerospace chief executive officer, said in the release: "The companies have already begun exploring multiple opportunities to work together, particularly as SpaceDev bids on larger, new and exciting programs and moves toward their goal of becoming a mid-market aerospace company. We look forward to a sustained and prosperous business relationship."

Poway, Calif.-based SpaceDev is a space systems company.

Sleep stock dormant but company active

After completing a $2.3 million private placement of convertible preferred stock and warrants last week, Sleep Holdings, Inc. (Pink Sheets: SLHJ) stock hasn't seen much activity.

The last time the company saw any stock movement was Sept. 13, closing at $1.50.

A company insider said Wednesday, slow stock activity shouldn't stop people from investing in the company.

"The sleep industry in general is very fragmented and it's a growing industry where there are billions of dollars being spent on sleep research," said the insider. "It's a growing segment so I think that it is going to keep expanding and it will continue to rebrand itself and enhance its services for the people."

The insider said the company has several acquisitions it is currently working on.

Sleep Holdings also announced Wednesday it appointed George J. Korkos, M.D. as the chairman of its business advisory board.

"We are delighted to have Dr. Korkos on board and to take part in shaping our future. With his assistance, Sleep Holdings will enhance its ability to implement its business plan for growth," said Roy Mers, company chief executive officer, in a press release.

Sleep Holdings is a sleep-disorder diagnostics company based in Dallas.

Pay88 stock increases

Good news rang in for Pay88, Inc. Wednesday with a 13.10% stock increase just a day after the company arranged a $1.5 million in private placement of discounted secured convertible notes and warrants.

The company (OTCBB: PAYI) closed Wednesday at $1.64, up from Tuesday's finish of $1.45.

Company chief executive officer Guo Fan said the time was perfect for the private placement deal.

"We are always looking for finance," he said. "But don't get me wrong, it all depends on the type of term sheets, which companies we are getting involved with and what stage the companies are at."

In total, the deal is expected to include $2.3 million principal amount of notes and warrants for 4,620,000 common shares. It will be conducted in two tranches. The company raised $750,000 from the first tranche, which was closed on Sept. 12.

It consisted of $1,155,000 principal amount of notes, class A warrants and 1,155, 000 class B warrants.

The company will issue another $1,155,000 principal amount of notes and warrants for another 2, 310,000 shares on the fifth day after a registration statement for the underlying shares is declared effective.

The notes are convertible into common stock at $1.00 a share. The class A warrants are each exercisable for one share at $1.13 for five years.

"So right now it is perfect, we got the private placement and I think it is going to really give us a jump start. I guess we did it the most difficult way but it was the most successful way," he said about the private placement.

The proceeds will be used for the company's expansion plan, said Fan.

Based in Barnstead, N.H., Pay88 provides prepaid cards for telephone and online game time.

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