Tech issuance remains strong; Norwood Resources raises C$30 million

By Sheri Kasprzak

Atlanta, March 28 - As resources companies closed out offerings made during a surge in stock prices among minerals, technology companies continued planning private placement deals.

"I think a lot of the tech deals we're seeing today are actually because of higher tech stocks late last week," said one market source. "Techs were a bit off today overall, so it's really hard to tell if this sudden interest from the tech sector is short-lived."

Among the technology companies announcing offerings Monday was Hydrogen Technologies Corp. with a C$4 million deal and CCR Technologies Inc. with a C$5 million offering.

Noticeably scarce Monday were oil and natural gas deals, said one Canadian sell-sider.

Private placement issuance among energy companies boomed last week when oil prices hit all-time highs. With oil sinking, the sell-sider said, issuance has also fallen off.

"When the prices were way up, so were energy stocks," the source said. "Prices were off today and late last week, so issuance will suffer for a while because of that."

Oil prices dropped $0.79 to close at $54.05 per barrel.

Even so, oil and natural gas exploration company Norwood Resources Ltd. led private placement news, closing an upsized C$30 million offering.

The company sold 20 million units at C$1.50 each to Canadian, American and European institutional investors.

The units are comprised of one share and one half-share warrant. The whole warrants allow for an additional share at C$1.75 each for the first year and C$2 each for the second year.

The offering was upsized from a C$20 million deal announced Feb. 23.

Based in Vancouver, B.C., Norwood is an oil and natural gas exploration company. It plans to use the proceeds from the deal for exploration on its oil concession in Nicaragua.

On Monday, the company's stock closed up C$0.01 at C$2.02.

CSI arranges C$12 million offering

Moving to technology offerings, CSI Wireless Inc. said it will head to the private placement market with a C$12 million offering, the company said.

The company plans to sell 3.2 million shares at C$3.75 each.

GMP Securities Ltd. leads a syndicate of underwriters, which has an over-allotment option for up to 800,000 additional shares.

"I think this is precisely one of those deals that managed to price reasonably well due to strong techs last week," said one market source. "It looks just about in line."

Even so, after the company announced the deal Monday morning, its stock lost C$0.15 to close at C$3.82.

Based in Toronto, CSI Wireless manufactures global positioning system products, wireless network equipment and telematics systems. It plans to use the proceeds for general corporate purposes, including acquisitions or investments in new technologies, products or businesses.

Aptimus raises $6 million

Aptimus, Inc. closed a private placement of stock for $6 million.

The company sold 351,083 shares at $17.09 each.

The investors also received warrants for 70,216 shares, exercisable at $20.22 each.

"Looks a little low," said one market source who had seen the deal. "I think the whole sector was a little off in general, so probably very little to do with the company."

"This investment significantly expands our capital base, enabling us to show larger potential partners the financial strength they may need for larger-scale relationships with Aptimus," said the company's president and chief executive officer Tim Choate in a statement. "This additional capital will also allow us the flexibility to be more aggressive in certain areas as we drive our business forward."

"We raised this new capital from highly respected, long-term investment firms that we feel will expand the strength of our supporters in the financial markets," Aptimus's chief financial officer John Wade, in a statement.

Merriman Curhan Ford & Co. was the placement agent.

Based in San Francisco, Aptimus operates a marketing and advertising network.

The company's stock closed down $0.05 at $18.10 Monday.

CCR plans C$5 million deal

CCR Technologies Ltd. announced it plans to raise C$5 million in a private placement of subordinated secured convertible debentures.

The investment will be made by the Quorum Group of Cos., according to a statement released by CCR.

The debentures mature in five years, bear interest at 6.5% annually and are convertible into common shares at C$0.75 each. The conversion price will increase to C$1.10 each if the company's pretax profit for 2005 exceeds C$3 million.

"CCR couldn't be more delighted with this investment by one of Canada's most experienced technology investors," said the company's chairman Kent Jespersen. "Clearly, Quorum's investment is a vote of confidence in CCR's strategy of broadening its technology base in the global oil and natural gas industry. The debentures have been designed as a quasi-entity investment, with repayment on maturity if there is not prior conversion. Quorum conversion rights are at a price that reflects a premium to CCR's trading price."

Based in Calgary, Alta., CCR develops technologies to purify oil and natural gas.

On Monday, CCR's stock lost C$0.02 to close at C$0.48.

Pathmark makes gains

Pathmark Stores, Inc.'s stocks continued to make gains Monday after announcing a $150 million private placement Thursday ahead of the Easter weekend.

The company's stock gained $0.27 to close at $6.19 Monday, but lost $0.02 in after-hours trading.

On Thursday, when the offering was announced, Pathmark's stock gained $1.44 to close at $5.92 and gained another $0.07 in after-hours trading.

The grocery store operator plans to sell shares at $7.50 each to The Yucaipa Cos., LLC this summer.

"This is a really great deal for them," said one market source familiar with the private placement. "Their stock is still benefiting from it. It's a great premium, I believe because of their plan for expansion."

Pathmark is based in Carteret, N.J.

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