U.S. private placement volume improves; Cadiz wraps $24 million offering

By Sheri Kasprzak

Atlanta, Nov. 30 - Private placement volume in the United States improved Tuesday, dominated by technology companies despite a dismal market for tech stocks.

"It's really hard to say why so many technology companies are out there today," said one sell-sider. "Tech stocks aren't so great today. My only theory is that there's money out there for these deals."

The Nasdaq Composite Index closed down 10.06 at 2,096.81, while Morgan Stanley's high-tech index dropped 2.57 to 486.90.

Even so, five technology companies announced private placement offerings Tuesday.

In Canada, volume remained strong, despite weaker mining and metals stocks. On Tuesday, gold prices were down slightly, according to a Canadian source.

"Last week, gold seemed to be driving the market," said the source. "Today, gold is weaker and oil is off, so it's hard to say."

Oil prices fell $0.63 at close at $49.13 per barrel Tuesday.

Twelve Canadian companies made announcement related to private placements Tuesday.

Heading up private placement news in the United States was a $24 million deal from Los Angeles-based Cadiz Inc.

The offering includes 400,000 units at $60 each. The units consist of five shares and one warrant.

Each warrant is good for an additional share at $15.

The company's management did not return calls Tuesday for comment on the offering.

Based in Los Angeles, Cadiz acquires and develops water-related land and agricultural assets. The company plans to use half of the proceeds to reduce its senior debt and will use the balance of the funds for working capital.

On Tuesday, the company's stock closed up $0.25 at $16.

Kintera raises $17.5 million

Kintera Inc. sold 2.5 million shares at $7 each for proceeds of $17.5 million, the company said Tuesday.

The deal, offered to institutional investors, is scheduled to close Dec. 6.

San Diego-based Kintera provides software for nonprofit organizations and plans to use the funds for general corporate purposes, including its pending acquisition of American Fundware Inc. from Intuit Inc.

The company's stock plummeted $0.91 Tuesday to close at $8.41.

Israel's TTI sells $14.6 million

TTI Telecom International Ltd. received agreements for $14.6 million in convertible preferred stock.

The company sold 6,636,391 shares of series A convertible preferreds to institutional investors, the company said.

The preferreds are convertible into common shares at $2.20 each and holders of the preferreds will be given a warrant to buy 0.4 common shares at $2.50 for each preferred owned.

Oppenheimer & Co. Inc was placement agent in the deal.

Based in Petach Tikva, Israel, TTI is a software provider for telecom service companies. On Tuesday, the company's stock sank $0.36 to end at $2.15.

Hartville gets $11 million

Pet insurance company Hartville Group Inc. raised $11,038,780 from the private placement of convertible debentures and warrants.

On Nov. 26, the company sold the debentures, which are convertible into common shares at $2.25 or 80% of the average five closing prices immediately before the conversion date. There is a $0.95 floor on the conversion price.

The five-year warrants allow for an additional share at a $0.95. The exercise price is subject to adjustment determined by dividing 100% of the holder's principal amount of debentures divided by $2.25.

Hartville is based in Canton, Ohio.

The company's stock closed down $0.11 at $2.20 Tuesday.

Valence prices $7.5 million deal

Valence Technology Inc. will raise $7.5 million in a private placement of common shares.

The offering, placed by agent A.G. Edwards Inc., includes 2.5 million shares priced at $3.03 each.

Valence is an Austin, Texas-based lithium-ion battery technology company. It plans to use the proceeds from the deal for working capital and general corporate purposes.

The company's stock bucked the technology sector's trend for Tuesday and closed up $0.04 at $3.27.

Airtrax gets $1.312 million

Airtrax Inc. has raised $1.312 million in a private placement of 1.64 million shares.

The common shares were sold at $0.80 each and also included warrants for 783,500 shares. The shares were sold in two separate closings on Nov. 22 and Nov. 23.

The warrants allow for an additional share at $1.25 each for five years.

First Montauk Securities Corp. was placement agent in the offering.

Airtrax, based in Hammonton, N.J., develops omni-directional navigation technology for vehicles.

On Tuesday, Airtrax's stock closed down $0.07 at $1.30.

Komodo raises $1 million

Vancouver, B.C.-based Komodo Inc. said Tuesday it received $1 million in a private placement of U.S. funds.

The company sold 1 million shares at $1 each.

Komodo chief executive officer Gordon Muir declined to comment specifically about the financing, but said the deal is going "so far, so good."

Muir said in a statement that he feels the private placement was successful because of the quality of his company's product.

"The word is spreading about Komodo and its revolutionary approach to e-mail and software security," Muir said in the statement. "The company has been successfully sending and receiving secure e-mail over the past few months in a beta test."

The Vancouver, B.C.-based company provides spam and anti-virus software for internet and web-based applications.

On Tuesday, Komodo's stock closed up $0.14 at $1.01.

Canadian offerings

North of the border, private placement news was led by a C$20 million offering from Anvil Mining Ltd.

Anvil said it plans to raise C$20,002,500 through the private placement of special warrants.

The offering includes 3.81 million special warrants at C$5.25 each.

The special warrants are convertible into one share and one half-share warrant. The half-share warrants are convertible into shares at C$6.25 each for 36 months.

Based in Toronto, Anvil is a base and precious metals mining and exploration company. It plans to use the proceeds from the private placement for the acquisition of its interest in the Mutoshi joint venture and to develop both the Mutoshi and Kinsevere-Nambulwa projects in the Congo. The remainder of the funds will be used for working capital.

The company's stock closed down C$0.15 at C$5.50.

Thunder raises C$10 million

Thunder Energy Inc. sold 1 million flow-through common shares at C$10 each for C$10 million, the company said Tuesday.

The offering is being placed through an underwriting syndicate led by FirstEnergy Capital Corp.

Based in Calgary, Alta., Thunder Energy is an oil and gas exploration company and plans to use the funds from the deal for ongoing exploration activities.

The company's stock closed up C$0.30 at C$7.80 Tuesday.

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