NetBank prices $25.35 million placement; Arcadia Resources sells $10 million of stock

By Laura Lutz

Des Moines, Jan. 3 - With PIPEs activity dominated by American companies on Wednesday, NetBank, Inc. led the pack as it priced a $25.35 million private placement of stock.

The company plans to sell 6.5 million shares at $3.90 each to new and existing institutional investors. Proceeds of the deal, which is expected to settle on Jan. 5, will be used for general corporate purposes.

Based in Atlanta, NetBank is a holding company for banking and mortgage lending businesses.

The company's shares lost 34 cents, or 7.33%, to close at $4.30 on Wednesday (Nasdaq: NTBK).

Another American company, Arcadia Resources, Inc. settled a private placement of stock for $10 million.

The company said in a news release that the investor was "one of the largest mutual fund families in the United States."

The Shemano Group acted as placement agent.

Based in Southfield, Mich., Arcadia provides home care services, medical and non-medical staffing and equipment.

The company has recently opened three medical clinics in Nevada, one in Indiana and three in Michigan. The company is contracted to open 34 new clinics over the next three months, and proceeds from the placement will be used for that expansion.

"We are very pleased to have these particular funds as new shareholders in Arcadia," said chairman and chief executive officer, John E. Elliott II in the release.

"This capital facilitates our current business plan to open walk-in, routine (non-emergency) medical clinics contracted for development within host sites."

On Wednesday, the company's stock gained 11 cents, or 5.34%, on the news to close at $2.17.

Tech companies predominate

Technology companies of various kinds constituted much of the rest of PIPEs activity for the day.

Clean Diesel Technologies, Inc. priced a $9.45 million placement of units at $1.35 each.

Each unit consists of one share, one half-share class A warrant and one half-share class B warrant. Each whole class A warrant will be exercisable at $2.00 per share until July 2, 2007. Each whole class B warrant will be exercisable at $2.50 per share until Dec. 29, 2007.

The investors will be new and existing individual and institutional shareholders as well as directors and managers of the company.

Proceeds will be used for working capital, especially for the continued capitalization and protection of the company's core technologies.

Clean Diesel said in a news release that the placement comes at "a pivotal time for the company."

"The world and its governments have adopted a more focused attitude towards greenhouse gas emissions and especially the need for the immediate reduction of particulate matter, oxides of nitrogen and fuel consumption," company chief executive officer and president Bernhard Steiner said in the release.

"It is in precisely these markets that our technologies have worldwide application, especially when they enable cheaper and more effective use of existing pollution control systems."

Innovator Capital Ltd. will manage the placement.

Based in Stamford, Conn., Clean Diesel develops technologies to reduce harmful engine emissions.

The company's shares closed up 5 cents, or 2.78%, at $1.85 on Wednesday (OTCBB: CDTI).

Hy-Drive raises $14.6 million

North of the border, Hy-Drive Technologies Ltd. announced that it pocketed C$14.565 million from the first tranche of a private placement of units on Friday.

The company sold 3.884 million units of one share and one half-share warrant at C$3.75 per unit. Each whole warrant is exercisable at C$5.50 for two years.

A final tranche of the placement, for C$7.535 million, is expected to settle in January.

Capstone Investments was agent for the first tranche.

Proceeds will be used to finance product rollout and introduce new products within new and existing markets. The proceeds will also be used for sales and marketing, research and development and patent applications, as well as general corporate purposes.

Toronto-based Hy-Drive develops hydrogen generation systems used for energy production.

After the deal was announced on Wednesday morning, the company's stock gained 19 cents, or 5%, to close at $3.99 (TSX Venture: HGS).

Musicrypt prices stock sale

Also in Canada, Musicrypt Inc. priced a C$10 million private placement of stock.

Sprott Securities Inc. will act as agent for the deal.

"We are very pleased to be working with a leading firm such as Sprott Securities," said president and CEO John Heaven in a release.

"The aim of this financing is to provide resources for our European market expansion with Adstream, our U.S. music delivery market growth, our radio and TV advertising delivery initiatives and the enforcement of our intellectual property rights."

Based in Toronto, Musicrypt provides digital delivery systems for the music industry. On Dec. 12, the company announced the successful completion of a pilot program to digitally deliver radio spots to U.S. radio stations for advertising agency The Gary Group.

The company's stock closed unchanged at C$0.32 on Wednesday.

Pacific Energy sells more units

As usual, Wednesday saw several private placements from Canadian resource companies. The leader for the day was Pacific Energy Resources Ltd., which secured $10.3 million from a second tranche of its previously announced private placement of units.

The deal brings the total size of the placement to $74,174,985.

In the most recent tranche, the company sold 8,457,361 subscription receipts to Canadian investors at C$1.30 each for a total of $9.4 million. The subscription receipts are exchangeable for units of one share and one half-share warrant.

The tranche also included a sale of 802,800 units at C$1.30 each to an international investor for $900,000.

The first closing settled on Dec. 6.

Based in Long Beach, Calif., Pacific Energy Resources is an oil and natural gas exploration and development company.

On Wednesday, the company's stock gained 6 cents, or 4.17%, to close at C$1.50 (Toronto: PFE).

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