Poseidis gets $8 million equity line; Globetel Communications seals $4.5 million convertible offering

By Sheri Kasprzak

New York, Sept. 1 - U.S. PIPE volume was relatively subdued in light of stock mixed on more worries over skyrocketing oil prices and the economic impact of Hurricane Katrina.

In the subdued market, however, West Palm Beach, Fla.-based Poseidis Inc. announced that it raised $8 million from an equity line.

Cornell Capital Partners, LP agreed to buy shares from Poseidis at 96% of the lowest closing bid price for five trading days after notice of a draw. The term of the agreement is two years.

Poseidis reportedly had 50,353,548 outstanding common shares as of May 31.

The investor also received a warrant for 500,000 shares, exercisable at $0.12 each.

Yorkville Advisors Management, LLC was the placement agent.

Even though Poseidis doesn't have a particular business, the shell company is looking to secure a source in France for its proposed mineral water bottling venture. The company is in talks with several companies regarding the construction of a bottling facility.

Before that, Poseidis had been in the hands-free mobile phone device business under the name Billyweb Corp.

The company posted a net loss of $83,222 for the quarter ended May 31, compared to a net loss of $2,342,667 for the same quarter in 2004.

During the early part of fiscal year 2005, the company issued 37,751,231 common shares to facilitate an 8-for-1 forward stock split.

On Thursday, the company's stock gained $0.003, or 5%, to close at $0.063.

Elsewhere in the U.S. private placement market Thursday, Globetel Communications Inc. announced the closing of a $4.5 million convertible note offering.

The company sold the 5% notes due Aug. 31, 2007 to three institutional investors.

The notes are convertible into common shares at $1.65 each. As of Aug. 8, the company had 77,108,788 outstanding common shares.

The investors received warrants for 2,727,273 shares, exercisable at $2.50 each for three years.

Westor Capital Group Inc. was the placement agent for the offering.

The Pembroke Pines, Fla.-based long-distance phone company plans to use the proceeds for working capital.

"We are pleased to complete this important $4.5 million financing," said the company's chief executive officer, Timothy Huff, in a statement. "This arrangement increases our operational flexibility as we continue to grow our business and provides a key vote of confidence in the execution of our strategic growth plan.

"We have seen tremendous growth in our business model, and this capital will allow for continued rapid expansion. We believe our ability to increase sales through new and existing products in our various business units, and advance the development of our high-altitude aireship, or Stratellite, provides strong growth potential. As we expand our revenue streams and begin to generate profits, we are confident in our ability to maximize shareholder value."

Over the last six months, the company's net losses have increased, according to Globetel's latest earnings report. For the six months ended June 30, the company sustained net losses of $9,557,383 compared to net losses of $2,160,870 for the same period in 2004.

The company's stock slipped $0.02 to close at $1.64 on Thursday.

Oil sparks flood of Canadian deals

Private placement volume was dominated Thursday by an influx of mineral, oil and other natural resources-related offerings in Canada, fueled in no small part by hefty gains in oil prices over the course of this week.

"Oil, no surprise, is strong given the fundamentals," said one Canadian market source on the latest wave of resources deals. "As long as oil stays strong, people are going to want to invest in some of these smaller companies that can grow quickly. My guess [is] that you will see continued interest until the price of oil - and gas - reverses. Hope you don't have a big SUV."

Oil bested itself again Thursday, gaining $0.17 to end at $67.49 per barrel.

Heading up this slate of energy-related offerings was a C$27 million deal priced by Total Energy Services Trust.

The Calgary, Alta.-based company plans to sell 2 million trust units at C$13.50 each through a syndicate of underwriters led by Sprott Securities Inc.

Total Energy, which provides drilling services and production rentals to the oil and natural gas sector, will use the proceeds to expand its capital budget to C$44.8 million from C$33.8 million.

After the offering was announced Thursday morning, the company's stock slipped C$0.35 to close at C$13.75.

TAG plans C$12 million deal

Looking to oil offerings specifically, TAG Oil Ltd. arranged a brokered C$12 million stock offering on Thursday and a separate non-brokered deal for C$3 million.

The deal includes 9,230,800 shares at C$1.30 each.

Canaccord Capital Corp. is the placement agent.

In the non-brokered offering, TAG plans to sell 2,307,700 shares at C$1.30 each for proceeds of C$3 million.

The proceeds from both deals will be used for drilling, exploration and seismic surveys in New Zealand. The remainder will be used for working capital.

TAG, based in Calgary, is an oil and natural gas exploration company.

The company's stock gained C$0.05 to close at C$1.60 on Thursday.

Silvercorp prices, ups unit offering

In another section of the resources market, Silvercorp Metals Inc. priced a C$4 million private placement late Wednesday and upsized the deal to C$6.4 million on Thursday afternoon.

The increased offering includes the sale of 2 million units at C$3.20 each.

The units are comprised of one share and one half-share warrant. The whole warrants allow for the purchase of an additional share at C$4.60 each for one year.

The proceeds will be used for working capital.

Based in Vancouver, B.C., Silvercorp is a silver exploration and development company.

Silvercorp's stock gained C$0.14 to close at C$3.58 Thursday.

Tanger stock continues to climb

A day after announcing an $81.27 million direct placement, Tanger Factory Outlet Centers, Inc.'s stock made gains for the second session in a row.

The company's stock settled up $0.73, or 2.63%, to end at $28.45 Thursday.

On Wednesday, when the direct offering was first announced, the company's stock gained $0.44 to close at $27.72.

The offering calls for the sale of 3 million shares at $27.09.

The shares are being sold under the company's shelf registration.

Based in Greensboro, N.C., Tanger is a real estate investment trust that owns and operates a group of retail outlet centers.

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