VCG pockets $21.3 million from stock offering; Bronze Marketing raises $12 million

By Sheri Kasprzak

New York, Feb. 2 - Heading up private placement action to close out the week was a $21.3 million stock offering from VCG Holding Corp. Elsewhere in the market, Bronze Marketing, Inc.'s stock took off by 248% after the company settled a $12 million placement.

VCG sold 3 million shares to a group of institutional investors at $7.10 apiece.

The news of the deal, released late in the day, sent the company's stock up by 1.85%, or 16 cents. The stock closed at $8.76 (Amex: PTT).

The shares were sold at an 8% discount to the average market price of the company's stock on Jan. 25.

Proceeds will be used for acquisitions of nightclubs as part of a strategic plan.

"We are delighted with the completion of this private placement and with the institutional investors who participated," said Troy Lowrie, the company's chief executive officer, in a news release. "The funds from this offering will allow us to continue our strategy of being the leading consolidator and operator in the industry."

VCG last tapped the private placement market with a $1.25 million offering of subordinated convertible notes in November 2004. The 12% notes were convertible into common shares at $2.00 each. That offering was also conducted to acquire new clubs.

Based in Denver, VCG operates a chain of adult nightclubs.

Tech and resources in

Even as volume remained light for most of the week, a sellside market source based on the West Coast said Friday he expects offerings to pick up soon.

"We should be seeing more and more in [natural resources] and more in tech," he noted.

Oil prices may be a function of that, he added, with oil rebounding this week. Oil rounded out the week Friday with a $1.72 gain to close at $59.02 per barrel.

And tech stocks have been making gains, at least the shares of some major companies, he noted.

"When the big names go up, normally the smaller ones follow," he added.

Bronze stock jumps

A day after concluding a $12 million offering of series B convertible preferred stock and closing a reverse acquisition of Sutor Steel Technology, Ltd., Bronze Marketing watched its stock jump by leaps and bounds.

The stock gained $2.85 to close at $4.00 (OTCBB: BNZE).

In the placement, Bronze sold 39,473.68 shares of the preferred stock at $304 each. The preferreds are convertible into a total of 3,967,368 common shares.

In the reverse acquisition, Bronze issued 323,380.52 shares of preferred stock to the shareholders of Sutor Steel in exchange for all of the outstanding shares of Sutor.

Based in Changshu, China, Bronze is a holding company focused on the manufacture of raw materials into high-end hot-dip galvanized steel.

Telkonet raises $10 million

Moving to the communications sector, Telkonet, Inc. wrapped up a $10 million private placement of its stock on Friday.

The company sold 4 million shares in the deal to two institutional investors and issued warrants for 2.6 million shares.

The warrants are exercisable at $4.17 each for five years.

Proceeds will be used for working capital and for strategic initiatives.

On Friday, the company's stock gave up 2.48%, or 8 cents, to settle at $3.14 (Amex: TKO).

Telkonet closed a similar offering in September when the company sold 2.4 million shares at $2.50 each for $6 million in proceeds.

Located in Germantown, Md., Telkonet develops high-speed voice, video and data communications over existing electrical wiring.

Point secures $4.76 million

Looking to direct placements, Point Therapeutics, Inc. announced its plans to close a $4,762,365 direct placement of stock with a group of investors that includes Federated Kaufmann Fund.

News of the deal sent the company's stock down 12.8%, or 11 cents, Friday to close at $0.75 (Nasdaq: POTP). Volume soared with 1,948,350 shares traded compared with the average 393,400 shares.

Federated and the other investors will buy up to 6,523,776 shares at $0.73 each. The share price is a 15% discount to the company's $0.86 closing stock price on Thursday.

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

The investors will receive warrants for 978,566 shares, exercisable at $1.00 each for five years.

The placement is expected to close Feb. 6.

Rodman & Renshaw, LLC is the placement agent.

Proceeds will be used for the development of talabostat to treat non-small cell lung cancer. The rest will be used for research and development, administrative costs, working capital and general corporate purposes.

Boston-based Point Therapeutics develops treatments for cancer.

Kit Resources to raise C$200 million

Elsewhere in PIPEs news, Kit Resources Ltd. upsized a private placement to C$200 million from the previously announced C$150 million.

The company intends to sell up to 166,666,667 subscription receipts at C$1.20 each, increased from 125 million.

Each receipt is exchangeable for one share once the company settles its acquisition of Summit Energy Co., LLC.

Canaccord Adams Inc. and Orion Securities Inc. are the placement agents.

Proceeds will be used for the acquisition of Summit and for drill programs and working capital.

On Jan. 5, 2006, the company settled a non-brokered offering of 40 million units at C$0.07 apiece.

Vancouver, B.C.-based Kit Resources is a diamond exploration company.

Alberta Clipper stock up

In other resources news, Alberta Clipper Energy Inc.'s stock settled up Friday, a day after the company negotiated the terms of a C$17.25 million stock deal.

The company's stock advanced by a dime on Friday, or 1.9%, to close at C$5.37 (Toronto: ACN). On Thursday, the company's stock gave up 13 cents to close at C$5.27.

The placement includes flow-through shares offered at C$6.90 each. The share price is a 27% premium to the company's C$5.40 closing stock price on Wednesday.

The placement is slated to close in mid-February.

Proceeds will be used to fund the company's exploration program and for development on the company's pipelines extension project in Trutch, B.C.

Alberta Clipper is an oil and natural gas exploration company based in Calgary, Alta.

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