Ipix leads private placement action with $10 million offering; volume slips as popular sectors cool off

By Sheri Kasprzak

Atlanta, June 22 - Ipix Corp. led private placement news Wednesday, closing a $10 million unit offering, as volume overall took a dip.

Ipix sold 4,149,377.59 units at $2.41 each.

The units consist of one share, an additional investment right for 0.06 of a share and a warrant for 0.44 of a share.

The additional investment rights are exercisable at $2.41 each and the warrants are exercisable at $3.11 each. The warrants may not be exercised until six months after the closing date.

Olympus Securities, LLC was the placement agent.

"We have expanded a great deal of intellectual capital to develop what we believe to be premier immersive imaging technologies," said the company's president and chief executive officer Clara Conti in a statement. "This funding allows us to bolster our sales and marketing efforts in order to capture a greater share of the surveillance and visual intelligence markets."

After the deal was announced Wednesday morning, Ipix's stock dropped $0.21, or 7.42%, to close at $2.62.

Vienna, Va.-based Ipix develops imaging products for government and commercial uses.

In the broader market, sell-siders said sectors that have traditionally been popular for investors in the PIPE market seemed to slip simultaneously Wednesday.

"Oil had been up, gold had been up, minerals had been up and those things were driving investor demand," said one sell-sider. "Even though the changes were small, those sectors all slid today. And there is also the fact that sometimes volume just goes down."

Oil, which had reached record highs this week, retreated Wednesday, losing $0.95 to close at $58.35 per barrel.

Stocks closed mixed Wednesday with the Dow Jones Industrial Average down 11.74 at 10,587.93; the Nasdaq composite index up 0.96 at 2,092.03 and the S&P500 up 0.29 at 1,213.90.

Central Alberta's C$18.5 million deal

Moving to Canada, Central Alberta Well Services Corp. led private placement news there with the closing of a C$18,504,900 convertible debenture offering Wednesday.

The private oil and gas service company sold 20,561 10% series A convertible debentures at C$900 each.

The five-year debentures are convertible into common shares at C$0.90 for the first three years, C$1.50 each from 37 months to 48 months and C$2 from 49 months to 60 months.

Wolverton Securities Inc. was the placement agent.

Proceeds from the offering will be used to purchase service rigs, coil tubing units and support equipment.

Based in Red Deer, Alta., Central Alberta is a private oil and gas service company focused on well servicing.

Healey Capital raises C$8.9 million

Elsewhere in Canada, Calgary, Alta.-based Healey Capital Corp. closed a C$8.88 million deal. The offering was conducted as a condition of its acquisition of the majority equity interest of Rockford Energy Corp. and the rights to five hydroelectric projects.

The company sold 14.8 million units at C$0.60 each through placement agents Wellington West Capital Inc. and Research Capital Corp.

The units include one share and one half-share warrant. The full warrants allow for an additional share at C$0.85 each for two years.

Under the terms of the acquisitions, Healey was required to raise at least C$5 million in an equity financing.

Healey acquired 90% equity interest in Rockford Energy Corp., a subsidiary of Rockford Technology Corp., and the right to develop five additional hydroelectric power generation projects in British Columbia.

The company plans to use the proceeds to repay construction financing for the Brandywine hydroelectric project, which had been owned by Rockford Energy, and to develop the company's new optioned projects. The remainder will be used for working capital.

Healey, which had been a capital pool company, will change its name to Run of River Power Inc. after the acquisition is complete.

On Wednesday, the company's stock closed unchanged at C$0.27.

Queenstake's C$7.27 million offering

Denver-based Queenstake Resources Ltd. was one of two gold exploration companies in the market Wednesday.

Queenstake closed a private placement of stock for C$7,273,896.

The company sold 25,978,200 shares at C$0.28 each with 4,549,600 shares sold under an over-allotment option.

The underwriters still have a greenshoe for up to 5,357,145 additional shares at the same price, exercisable for 30 days after the closing date.

The proceeds will be used for the underground development and exploration of Jerritt Canyon.

Queenstake announced the closing Wednesday morning and its stock edged down half a penny to close at C$0.26.

According to a market source close to natural resources, gold prices had experienced solid price gains over the past week, dipping for the first time this week on Wednesday. Gold futures fell $0.80 to end at $438.90 an ounce.

"Obviously, these deals are a result of the boom gold has seen over the last week, week and a half, even two weeks," that source said. "The [Queenstake deal] is right in line."

Another gold exploration company, Midway Gold Corp., priced a C$1.15 million offering Wednesday. That deal, according to the market source, also priced in line.

Midway said it plans to sell 1 million units at C$1.15 each.

The units include one share and one half-share warrant, the whole of which is exercisable at C$1.15 each for one year.

After the deal closed Wednesday afternoon, Midway's stock gained C$0.06, or 5.5%, to close at C$1.15.

Midway is based in Vancouver, B.C. The proceeds will be used for ongoing exploration on the Spring Valley property and for working capital.

Channel Resources Ltd., another gold exploration company, also announced its intentions to conduct a private placement of units Wednesday, but the full details of the offering could not be determined.

Extra Space's stock makes gains

A day after closing an $83,514,000 private placement, Extra Space Storage Inc.'s stock rose further.

The company's stock gained $0.09 to close at $14.23 Wednesday.

When the closing was announced Tuesday, the company's stock gained $0.34 to close at $14.14.

Salt Lake City-based Extra Space sold shares at $13.47 each.

The deal, according to a source who had seen the offering, may have affected the company's stock price, but an upcoming acquisition of a portfolio of self-storage properties may also have an impact.

"This was evidently done as part of that acquisition," said the market source. "So it's probably a combination of the two."

That source said Tuesday that the deal was priced "in line."

Extra Space operates self-storage facilities.

Critical Therapeutics' stock still up

After closing a $54,252,000 private placement Tuesday, Critical Therapeutics, Inc.'s stock continued to rise Wednesday.

The company's stock gained $0.279, or 4.12%, to close at $7.059.

After the closing was announced Tuesday, the company's stock soared $0.68, or 11.15%, to close at $6.78.

According to market sources, the offering helped push Critical Therapeutics' stock.

One market source noted that the impressive gains the company experienced Tuesday when the deal closed are a solid indicator.

"[Biopharmaceutical] stocks in general have been mostly strong, though a bit shaky the last few days," said one market source. "I'd say the offering did help some."

The company sold shares at $5.48 each to institutional investors.

Based in Lexington, Mass., Critical Therapeutics is a biopharmaceutical company focused on treatments for respiratory diseases.

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