Park City wraps $5.8 million PIPE; UQM raises $5.2 million in stock offering

By Sheri Kasprzak

New York, June 26 - Park City Group, Inc. led PIPE action on Tuesday with the closing of a $5.8 million offering of series A convertible preferred stock.

After the offering was announced Tuesday afternoon, the stock gave up 2.47%, or 7 cents, to end at $2.76 (OTCBB: PCYG).

The company issued 584,000 shares of the preferreds, which are convertible at $3.00 each.

Taglich Brothers was the placement agent.

"The additional capital position will provide us with the financial flexibility to scale our technological requirements sooner than what we originally envisioned without straining our immediate resources," said Randall Fields, the company's chief executive officer, in a statement.

"This supplemental liquidity will allow us to balance our accelerated growth track while optimizing the technological resource requirements to achieve our capital and operating objectives."

Proceeds will be used for information systems expansion, infrastructure and storage purchases, hardware deployment and working capital.

Based in Park City, Utah, Park City Group develops computer software to help retailers increase sales and reduce inventory and labor costs.

In the broader market, stocks continued to slip on Tuesday. The Dow Jones Industrial Average closed down 14.39 to end at 13,337.66 and the Nasdaq composite index fell by 2.92 to end at 2,574.16. The Standard & Poor's 500 composite index gave up 4.85 to settle at 1,492.89 on Tuesday.

"I don't really see anything that's keeping volume down," said one market source. "Stocks may be off a bit, but that doesn't even seem to be a really big deal."

UQM raises $5.2 million

In other PIPE news Tuesday, UQM Technologies, Inc. concluded a $5.2 million offering of 1.25 million shares with clients of Heartland Advisors.

The shares were sold at $4.16 each. The share price is a slight discount to the company's $4.19 closing stock price on Monday.

News of the deal comes as UQM announced it will be participating in Computershare Ltd.'s ProxyAccesss program, which enables its clients to meet all requirements of the Securities and Exchange Commission's notice and access rule.

"As a company focused on efficiency and applying advanced technology to existing applications, it makes perfect sense for UQM to be an early adopter of this more efficient and modern shareholder communications approach," said Donald French, the company's chief financial officer, in a statement released Tuesday by Computershare.

On Tuesday, the company's stock gained 5 cents, or 1.19%, to close at $4.24 (Amex: UQM).

UQM last visited the PIPE market for capital in June 2005 when the company sold $4 million in shares.

In that deal, two funds managed by The Security Benefit Group of Cos. bought 1,365,188 shares at $2.93 each.

Based in Frederick, Colo., UQM develops alternative energy technologies.

Primus may price PIPE

Elsewhere, Primus Telecommunications Group Inc. may be conducting a private placement, according to a trader.

Word of the deal sent the company's stock down a penny, or 1.57%, to close at $0.94 (OTCBB: PRTL).

The trader, who said he'd heard the buzz about the PIPE, said the offering could mean positive things for the company's bonds.

Primus is a McLean, Va.-based telecommunications provider.

Celsius' stock dives

A day after sealing a $16 million common stock purchase agreement with Fusion Capital Fund II, LLC, Celsius Holdings, Inc.'s stock plummeted by 12.5%.

The stock gave up 16 cents to end at $1.12 on Tuesday (OTCBB: CSUH). On Monday, the stock fell by 2 cents to end at $1.28.

Under the agreement, Fusion may buy shares of Celsius at the prevailing market price with no fixed discount over the next 25 months.

So far, the company has drawn $500,000 from the agreement and will receive another $500,000 once a registration statement is filed with the SEC.

Proceeds will be used for marketing, working capital and general corporate purposes.

Based in Delray Beach, Fla., Celsius makes nutritional foods and beverages.

Twin Butte stock slips

In other secondary market activity, Twin Butte Energy Ltd.'s stock fell by 3.8% on Tuesday after the company priced an C$18 million private placement.

The company's stock gave up 12 cents to close at C$3.05 (Toronto: TBE). On Monday, the stock lost 8 cents to end at C$3.17.

In the placement, the company plans to sell shares at C$3.00 each.

The deal is being conducted as part of Twin Butte's acquisition of producing assets, undeveloped land and infrastructure in the Leaman/Thunder area of western central Alberta for $28.2 million.

The deal is being placed through a syndicate of underwriters led by Canaccord Capital Corp. and is expected to close on July 17. The closing of the deal is contingent upon the completion of the acquisition, which is expected to wrap up no later than July 4.

Calgary, Alta.-based Twin Butte is an oil and natural gas exploration and development company.

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