American Real Estate sells $600 million in convertibles; PokerTek grabs $13 million from stock sale

By Sheri Kasprzak

New York, April 27 - The PIPE market ended the week with a few large offerings as the Dow Jones Industrial Average closed its best-performing week in history.

The Dow closed up 15.44 to end at a record 13,120.94. The Nasdaq composite index ended the week up 2.75 at 2,557.21, and the Standard & Poor's 500 composite index fell 0.18 to close at 1,494.07.

Meanwhile, American Real Estate Partners, LP closed its previously announced private placement of variable-rate senior convertible notes for $600 million.

The deal closed in three tranches with the first settling on April 9 for $200 million, the second closing on April 18 for $300 million and the final tranche closing Friday for $100 million.

The notes, due 2013, were purchased by Portside Growth and Opportunity Fund; an investment fund managed by Ramius Capital Group, LLC; and an investment fund managed by Highbridge Capital Management, LLC.

The notes bear interest at Libor minus 125 basis points with a 4% floor and a 5.5% ceiling and are convertible into depositary units at $132.595 each.

The stock gave up 49 cents to end at $108.51 Friday (NYSE: ACP).

Based in New York, American Real Estate Partners is a holding company for real estate, gaming and home fashions industries.

PokerTek raises $13 million

Elsewhere in the PIPE market, PokerTek, Inc. pocketed $13 million from a private placement of stock.

The company sold to Magnetar Capital Master Fund, Ltd.; Janus Venture Fund; Janus US Venture Fund; Small Cap Growth Portfolio; SRB Greenway Capital (QP), LP; SRB Greenway Capital, LP; and SRB Greenway Offshore Fund, LP 1,444,444 shares at $9.00 each. The shares were sold at a 25% discount to the company's $12.00 closing stock price on Thursday.

The investors also received warrants for 439,541 shares, exercisable at $10.80 each through April 26, 2012.

The company's stock gained 13 cents to close at $12.13 Friday (Nasdaq: PTEK).

PokerTek, based in Matthews, N.C., develops automated poker table software.

Security Devices wraps $4.5 million deal

In other PIPE activity Friday, Security Devices International announced the completion of a private placement for $4.5 million.

The company issued to a group of institutional and private investors 2 million shares at $2.25 each.

Salman Partners Inc. was the placement agent.

"Proceeds from the private placement will allow us to move forward as planned to complete the development of our Lektrox ammunition series," said chief executive officer Sheldon Kales in a news release.

The Lektrox series is a wireless, non-lethal form of ammunition.

The stock advanced by 10 cents, or 3.45%, to end at $3.00 Friday (OTCBB: SDEV).

Toronto-based Security Devices develops non-lethal ammunition.

Alturas plans C$10 million PIPE

Moving north of the border, a slate of gold offerings was priced on Friday as gold prices rebounded, gaining $2.50 to end the week at $680.50 per ounce.

The deals were led by a C$10 million placement of units from Alturas Minerals Corp.

The pricing terms of the deal have yet to be determined, but the offering is expected to include units of one share and one half-share warrant. The whole warrants are exercisable for 18 months.

Raymond James Ltd. is the lead agent for the offering, which is expected to close May 23.

Proceeds will be used for gold and copper-gold projects in Peru.

Alturas's stock remained unchanged at C$0.52 (TSX Venture: ALT).

Toronto-based Alturas is a mineral exploration company.

Another gold explorer, Mineraux Maudore Ltd. priced a C$5.5 million private placement of stock at C$1.20 each.

The non-brokered deal is set to close May 11 and the proceeds will be used for exploration on the company's Comtois project in the Abitibi Greenstone Belt of Quebec.

The company's stock gave up 12 cents to close at C$1.50 Friday (TSX Venture: MAO).

Maudore is based in Montreal.

Aldershot closes C$5 million deal

In other resources news, Aldershot Resources concluded a C$5 million private placement of 18,518,519 units comprised of one share and one warrant. The units were priced at C$0.27 each.

The warrants are exercisable at C$0.42 each for two years.

Northern Securities Inc. was the placement agent.

On Friday, the company's stock lost a penny to end at C$0.34 (TSX Venture: ALZ).

Vancouver, B.C.-based Aldershot is a uranium exploration and drilling company.

Ireland stock dives

A day after pricing two PIPEs totaling $13 million, Ireland, Inc. watched its stock plummet by 23.08%.

The drop comes after the stock climbed by 54.76%, or 69 cents, on Thursday to close at $1.95 (OTCBB: IRLD). On Friday, the stock gave up 45 cents to end at $1.50.

Volume remained lighter than normal with 7,600 shares traded compared with the average 59,970 shares. On Thursday, 6,190 shares traded.

In both a domestic and a foreign offering, Ireland plans to sell units of one share and one half-share warrant at $0.65 each.

Proceeds will be used for property acquisitions, for development and for general corporate purposes.

Ireland also announced Thursday that its four-for-one stock split was completed.

Located in Blaine, Wash., Ireland is a mineral exploration company.

Innovive stock falls

In other secondary market activity, Innovive Pharmaceuticals, Inc.'s stock gave up 6.9% after the company closed a $15.015 million private placement on Wednesday.

The stock slipped by 30 cents to settle at $4.05 Friday (OTCBB: IVPH). On Thursday, the stock gained 50 cents, or almost 13%, to end at $4.35. On Wednesday, when the deal was settled, the stock gained 10%, or 35 cents, to close at $3.85.

In the placement, the company sold units of one share and one half-share warrant at $2.73 each, a 22% discount to the company's $3.50 closing stock price on Tuesday.

Paramount BioCapital Inc. was the placement agent.

Proceeds will be used for the advancement of the company's pipeline of hematology and oncology products.

New York-based Innovive acquires, develops and commercializes therapies for cancer and blood diseases.

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