Small deals crowd private placement market; Intrepid Technology gets $25 million equity deal

By Sheri Kasprzak

Atlanta, Oct. 19 - Several small deals entered the private placement market Tuesday, according to sell-side sources.

"Volume was pretty good today, but we weren't really seeing a lot of bigger deals," said one sell-side source. "There were quite a few smaller ones, under $5 million. I think some companies may be holding back a little bit because some of these deals are not pricing with the market."

That was the case with Insignia Solutions plc, which announced late Monday that is had wrapped up a $2.3 million private placement.

The company sold 3,083,499 American depository shares to investors at $0.48 and warrants for 770,877 ADSs at $1.06 for a total of about $1.48 million. The warrants are not exercisable until six months after closing.

Insignia's stock, however, plummeted $0.42 to close Tuesday at $0.82.

Intrepid enters $25 million equity agreement

Even so, Intrepid Technology announced a $25 million standby equity distribution agreement from Cornell Capital Partners LP.

The facility may be drawn upon at any time for two years with a maximum draw of $350,000 per week and a maximum of $1.2 million for 30 days.

Cornell will receive shares at a 1% discount of the lowest bid five days after the transaction closes.

Cornell also agreed to buy $750,000 convertible debenture from Intrepid over three draws of $450,000; $150,000; and $150,000. In this deal, Intrepid will increase its shares to 250 million before the second and third draws.

Intrepid, an Idaho Falls, Ida., energy technology company, plans to use the funds from the equity agreement to help build and operate bio-gas refineries. Intrepid's stock closed up $0.005 at $0.05.

Canada's International Menu to raise C$9 million

In Canadian action Tuesday, International Menu Solutions Corp. said it was hitting the private placement market with a C$9 million convertible debenture.

The debenture, which carries a 10% coupon, is convertible for five years at C$1 per share with a half purchase warrant exercisable at C$1.

The Toronto-based food services company plans to use the funds from the deal to acquire firms in the oil and gas sectors.

The deal, according to chief executive officer and president Bill Akrivos, will help build the company's merger and acquisition power.

"Menu is a holding company looking to acquire oil and gas companies through mergers and acquisitions," Akrivos said in a statement. "Menu will concentrate its resources to pursue private and/or public companies in this sector with the goal of taking a majority interest."

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