Ipix stock drops 11% on $5 million convertibles sale; AHPC concludes $3 million preferreds issue

By Sheri Kasprzak

New York, June 26 - Ipix Corp.'s stock dove by 11.22% after the company sealed a $5 million private placement of five-year convertible notes.

The stock lost 11 cents to end the session at $0.87 (Nasdaq: IPIX).

The notes are convertible into a total of 5,208,338 common shares. The notes bear interest at the greater of 7% or Libor plus 200 basis points with a 10% ceiling.

The investors in the offering include Iroquois Master Fund Ltd.

The investors will receive warrants for 1,822,923 shares, exercisable at $1.06 each for five years and warrants for 2,604,172 shares, exercisable at $0.96 each for five years. The latter warrants become exercisable 90 days after the registration statement is declared effective.

C.E. Unterberg, Towbin LLC is the placement agent.

Proceeds will be used for general corporate purposes.

"We are pleased to have entered into this agreement and financing arrangement, which will support our work to offer premier 360-degree surveillance technologies," said Clara Conti, Ipix's chief executive officer, in a statement. "We will continue to develop products and solutions to address the needs of the visual intelligence market."

Conti did not return calls for further comment on the offering by press time Monday.

In its latest earnings statement, Ipix reported a net loss of $3.85 million for the quarter ended March 31, compared with a net loss of $5.88 million for the corresponding period of 2005.

Based in Reston, Va., Ipix develops imaging technologies used for surveillance and high-resolution digital still photography.

AHPC raises $3 million

Elsewhere in PIPE action Monday, AHPC Holdings, Inc. wrapped up a $3 million private placement of series B convertible preferred stock with Mercator Momentum Fund III, LP; Monarch Pointe Fund, Ltd.; and M.A.G. Capital, LLC.

The company issued 30,000 shares of the preferred stock at $100.00 apiece.

The deal was announced Monday afternoon and the stock climbed 10.3%, or 16.3 cents, to settle at $1.7427 (Nasdaq: GLOV).

The preferreds pay annual dividends at the higher of 9% or Prime rate plus 100 basis points with a 12% ceiling. The preferreds are convertible at $1.60 each.

The investors received warrants for 1.95 million shares. Of the warrants, 975,000 are exercisable at $1.75 each and 975,000 are exercisable at $1.85 each. The warrants expire June 20, 2011.

Flagstone Securities was the placement agent.

The offering will put the company back in compliance with Nasdaq Stock Market listing rules. The company has been in violation of those listing rules since April when it failed to satisfy the $2.5 million stockholders' equity requirement.

Based in Glendale Heights, Ill., AHPC markets disposable medical examination, foodservice and retail gloves.

Brownstone leads Canadian PIPEs

Moving to Canada, Brownstone Ventures Inc. negotiated a C$12 million non-brokered private placement.

The offering includes up to 8 million units of one share and one half-share warrant at C$1.50 each. The whole warrants are exercisable at C$2.00 each for two years.

In other news, Brownstone entered into an agreement with Dejour Energy (USA) Corp. to participate with Dejour and Retamco Operating Inc. in the ownership, exploration and development of oil and gas properties in the Piceance Basin of Colorado and the Uinta Basin of Utah.

On Monday, the stock ended down 10 cents, or 6.25%, to close at C$1.50 (TSX Venture: BWN).

Toronto-based Brownstone is an investment company focused on uranium, oil and gas companies.

The offering was one of several energy-related offerings in the market on Monday as oil prices climbed almost $1.00.

"As long as prices keep going up, I think there's plenty of demand for these offerings," said one Canadian market source familiar with resources. "Of course, the way things have been going lately, we're keeping an eye on [oil] prices."

On Monday, oil prices advanced by 93 cents to end at $71.80 per barrel.

In other energy news, Mystique Energy Inc. priced a C$3,225,000 private placement.

The offering includes 7.5 million flow-through shares at C$0.43 each.

Acumen Capital Finance Partners Ltd. is the placement agent and has a greenshoe for up to 2.5 million additional shares.

The deal is expected to close July 13.

Proceeds will be used for drilling on the company's farm-in lands in the Harmattan/Lochen/Bottrell/Wildcat Hills areas in Calgary.

The company's stock fell 2.5 cents to close the day at C$0.33 Monday (TSX Venture: MYS).

Mystique, based in Calgary, Alta., is an oil exploration and exploitation company.

Another Calgary-based oil company, Expedition Energy Inc., negotiated a private placement for up to C$2 million.

The deal includes up to 3,076,924 flow-through shares at C$0.65 each.

The deal is slated to close July 6.

Proceeds will be used for exploration on the company's Canadian properties.

Kermode's C$2 million deal

Finally, in Canadian offerings, Kermode Resources Ltd. arranged a C$2 million private placement.

The placement was announced Monday evening, and the stock slipped 16.07%, or 4.5 cents, to end at C$0.235 (TSX Venture: KLM).

The non-brokered deal includes up to 6,451,613 flow-through shares at C$0.31 each offered to MineralFields Group.

Proceeds will be used for exploration on the company's Jackson Arm property in Newfoundland.

Located in Vancouver, B.C., Kermode is a gold exploration company.

Blue Coat stock up 5.8%

After wrapping a $42.06 million private placement on Friday, Blue Coat Systems, Inc.'s stock climbed on Monday.

The stock gained 5.83%, or 92 cents, to settle at $16.70, gaining another 5 cents in after-hours trading (Nasdaq: BCSI).

On Friday, the stock closed up 81 cents to close at $15.78.

In the offering, Blue Coat issued 42,060 shares of series A convertible preferred stock to Francisco Partners and Sequoia Capital. The preferreds are convertible at $17.525 each, a 17% premium to the company's $14.97 closing stock price on June 22.

Proceeds from the offering will be used for Blue Coat's acquisition of the assets of the NetCache business from Network Appliance, Inc. The rest of the proceeds will be used for general corporate purposes.

Based in Sunnyvale, Calif., Blue Coat is a web communications company.

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