SCBT places stock; Response wraps deal, eyes more; Quaterra offers convertibles; Vycon takes bridge loan

By Kenneth Lim

Boston, Oct. 28 - SCBT Financial Corp. placed $28.28 million of stock to individual and institutional investors as it raised money for general purposes.

Response Biomedical Corp. completed the initial C$4.66 million tranche of a C$5 million unit placement and said the rest of the deal is expected to close soon.

Quaterra Resources Inc. is offering $5 million of convertible promissory notes in a private deal to raise money for exploration.

Vycon, Inc. said it received a $1 million bridge loan from three substantial shareholders as it continues plans for a convertible offering.

SCBT sells stock

SCBT Financial said it settled a $28.28 million private placement of stock.

The company sold 1.01 million common shares at $28 apiece. SCBT common stock (Nasdaq: SCBT) rose 8.74% or $2.60 to close at $32.35 on Tuesday.

SCBT expects to use the proceeds for general corporate purposes.

The bank holding company is based in Columbia, S.C.

"We are pleased with the response to our capital raise and appreciate the confidence our customers, employees, and shareholders have shown in our company," SCBT chief executive Robert R. Hill, Jr. said in a statement. "For over 74 years, we have viewed safety and soundness as our hallmark strength. The environment we are in today will create challenges and opportunities. Accordingly, we are well-positioned with a strong balance sheet, capital ratios, and credit quality, so we can expand banking relationships and support communities across the Carolinas."

Response wraps first tranche

Response Biomedical said it completed the initial C$4.66 million portion of a C$5 million stock-and-warrant unit offering.

The company sold about 31.08 million units of one common share and one half-share warrant at C$0.15 per unit. A further non-brokered financing of about C$340,000 is expected to close within the next few days, bringing the total gross proceeds to C$5 million.

Each whole warrant is exercisable at C$0.20 for three years.

Response common stock (TSX: RBM) closed unchanged at C$0.15 on Tuesday.

Proceeds will be used for working capital, in particular the launch of a flu test being sold with 3M Medical and a cardiovascular test line to be sold by Roche Diagnostics.

Based in Vancouver, B.C., Response develops diagnostic tests for clinical and environmental applications.

"This financing, coupled with the commitments of our partners puts us in a much stronger position to take advantage of opportunities in the diagnostic market, as our partners prepare to market our two key product candidates, Flu A+B Test, which 3M has commenced selling this month, and NT-proBNP Test expected to be launched by Roche Diagnostics in the first quarter of 2009," Response chief executive S. Wayne Kay said in a statement. "We are also continuing to explore new opportunities with potential partners interested in funding further development applications in clinical areas not covered by our current partnerships."

Quaterra to raise $5 million

Quaterra Resources said it plans to place $5 million of two-year 10% convertible promissory notes in a non-brokered deal.

The notes will be sold at par of $1,000 apiece, and will be convertible into units of one common share and one warrant at $0.60 per unit. Quaterra common stock (AMEX: QMM) closed at $0.55 on Tuesday, lower by 6.8% or $0.04.

The two-year warrants are exercisable at $0.75 for two years, but may expire sooner if Quaterra shares close above $1 for 10 consecutive days.

If the company's common shares close at $0.75 or higher for 10 straight days, the notes will be automatically converted.

Proceeds will be used for exploration.

Based in Vancouver, B.C., Quaterra acquires and explores mineral properties in the Americas.

Vycon takes $1 million bridge loan

Vycon said three of its substantial shareholders are providing the company with a $1 million one-year secured bridge loan.

The loan bears an interest rate of 10%.

BankInvest, Cooper Capital and the Cabayan Family Trust are each contributing $333,333 under the loan.

The loan will convert into convertible notes once the company raises $3 million from a planned convertible offering.

Investors will also receive a warrant for 466,473 shares at 25p per share for five years.

Vycon common stock (LSE: VYCO) closed at 20p on Tuesday, up by 14.29% or 2.5p.

Vycon, based in Yorba Linda, Calif., is a designer, developer and manufacturer of flywheel-based energy storage systems.

"I am pleased by the continued support demonstrated by our major shareholders in making this facility available," said Vycon non-executive chairman David Potter in a statement. "Plans for the convertible loan note are progressing and we will be announcing further details shortly. It is the intention of the board that all shareholders will be provided the opportunity to participate in the convertible loan note."

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