Our Stocks to Watch include Gastar Exploration Ltd. (Amex: GST), Biocentric Energy Holdings Inc. (OTC: BEHL), Super Nova Resources Inc. (OTC: SNRR), Patriot Capital Funding Inc. (NASDAQ: PCAP), Smokefree Innotec Inc. (OTC: SFIO) and Paradigm Medical Industries Inc. (OTCBB: PDMI).
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GASTAR EXPLORATION LIMITED (AMEX: GST)
"Up 428.33% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/GST.php
Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in
GST News:
August 3 - Gastar Exploration Announces Effectiveness of 1-for-5 Reverse
Gastar Exploration Ltd. (Amex: GST) announced that the previously announced share consolidation on the basis of one (1) common share for five (5) common shares became effective, and the post-consolidation common shares commenced trading on the NYSE Amex on August 3, 2009. The Company's shareholders approved the proposal for a reverse stock split at a Special Meeting of Shareholders held on June 20, 2008, and the Board of Directors approved the implementation of the reverse stock split at a meeting held June 29, 2009. Upon the exercise of any options or warrants, resulting shares issued will be issued on a post-consolidation basis. No scrip or fractional certificates will be issued in connection with the reverse stock split. Shareholders who otherwise would be entitled to receive fractional shares because they hold a number of common shares not evenly divisible by five will receive a number of shares after rounding up to the next whole common share.
Registered shareholders of Gastar who hold existing physical stock certificates will receive a letter of transmittal from Gastar's transfer agent, American Stock Transfer & Trust Company, containing instructions on how to receive new share certificates. Shareholders whose certificates are held in "street name" or on deposit with their brokerage firm will need to take no further action.
BIOCENTRIC ENERGY HOLDINGS INCORPORATED (OTC: BEHL)
"Up 34.00% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/BEHL.php
BioCentric Energy, Inc. is dedicated to the development of new technologies as well as acquiring and fostering companies with innovative technologies designed to provide unique and effective green energy solutions for the 21st century. Along with the cultivation of important relationships and partnerships with synergistic entities, BioCentric Energy has devoted substantial time and effort in research and development in order to bring a range of innovative green alternatives to the marketplace.
BEHL News:
August 3 - Biocentric Energy Holdings Negotiating Exclusive Manufacturing License With Asian Corporation
Biocentric Energy Holdings, Inc. (OTC: BEHL) announced the company is in serious negotiations of an exclusive licensing agreement for the manufacture and use of Biocentric's Patent Pending Algae Pro Closed loop Photobioreactor System in
Biocentric President Dennis Fisher today announced the company is in serious negotiations for the exclusive licensing of the closed loop photobioreactor system, with an Asian country. The terms of the negotiations, the licensing fee and the country in question are to remain confidential at this time. Mr. Fisher also indicated the exclusive licensing fee for the entire country was a significant amount and that a consummated contract is anticipated during August 2009.
Company COO Mr. Dennis Shen returned from
Following updates for the production and ALGAE harvesting for the company's onsite closed loop Photobioreactor system. The 1800 square feet closed loop Photobioreactor is fully operational and the initial harvest of the ALGAE culture is expected sometime next week. The company plans to produce a Biodiesel sample product from this initial harvest and initiate lab testing of the Biodiesel fuel samples to calculate the emission reductions of a diesel engine operating on the ALGAE based Biodiesel fuel. The results of the test will be made available by Press Release and the company's website.
Mr. Shen will be returning to
Dennis Fisher, Company President, commented, "Emerging Green Companies today released a 3 part interview on their website which is a detailed introduction to how ALGAE is produced, harvested and the products' end use contributing to a future all 'Green' environment."
SUPER NOVA RESOURCES (OTC: SNRR)
"Up 38.69% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/SNRR.php
Based in
SNRR News:
August 3 - Greenlink Interactive to Enter $30B International Wire Business
Jim Wheeler, CEO of Super Nova Resources (OTC: SNRR), announced a joint venture with Sovereign Card Services (www.sovereigncardservices.com) to develop PODS (point of decision systems) that will allow the sender and recipient to see each other "LIVE" during the banking transaction. These PODS will be deployed in high traffic retail locations such as grocery stores, malls, mini marts and major retail stores worldwide. Jim said after the meeting, "I am excited about the future and the ability Greenlink Interactive and Sovereign will have to reconnect families throughout the world."
Currently, immigrants who live at the
ABOUT SOVEREIGN CARD SERVICES INC.
Sovereign Card Services provides both VISA or MasterCard which are secure, full service debit cards, providing cardholders with ready access to cash at millions of ATMs worldwide and which enable cardholders to conveniently pay for purchases at retailers everywhere. In addition Sovereign cards provide secure, low cost, convenient transfer of funds to relatives and loved ones through Sovereign's "Companion Card" program. Sovereign Debit Cards are easy to load, whether by cash, direct deposit, wire transfer, money order.
PATRIOT CAPITAL FUNDING INCORPORATED (NASDAQ: PCAP)
"Up 97.02% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/PCAP.php
Patriot Capital Funding, Inc. (www.patcapfunding.com) is a specialty finance company primarily providing customized financing solutions to private equity sponsors focused on making investments in small- to mid- sized companies. Patriot Capital Funding typically invests in companies with annual revenues generally ranging from $10 million to $100 million that operate in diverse industry sectors. Investments usually take the form of senior secured loans, junior secured loans, and/or subordinated debt investments — which may contain equity or equity-related instruments. Patriot Capital Funding also offers "one-stop" financing, which typically includes a revolving credit line, one or more senior term loans and a subordinated debt investment. Patriot Capital Funding also makes equity co-investments of up to $3.0 million.
PCAP News:
August 3 - Prospect Capital Agrees to Acquire Patriot Capital for $197 Million, or 54% of Equity Book Value
Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced that it has entered into a definitive agreement to acquire Patriot Capital Funding, Inc. (NASDAQ: PCAP) ("Patriot").
Prospect is acquiring Patriot for $197 million, comprised of (a) cash to repay all Patriot debt, anticipated to be $110.5 million when the acquisition closes, plus (b) Prospect shares exchanged at a ratio of approximately 0.3992 Prospect shares for each Patriot share, or 8,616,467 Prospect shares for 21,584,251 Patriot shares, with such exchange ratio decreased by any tax distributions Patriot may declare before closing.
The acquisition, unanimously approved by both of Prospect's and Patriot's Board of Directors, is expected to close in the next 60 days. The acquisition is subject to Patriot stockholder approval and other customary closing conditions. Patriot's shareholders will own 15% of Prospect's outstanding shares pro forma for the acquisition, so Prospect shareholder approval is not required.
Prospect believes the benefits of the acquisition for its shareholders include, but are not limited to:
* Accretion: Prospect expects the Prospect shares issued to generate 64 cents per share per quarter of net investment income, which would be accretive to Prospect at 10 cents per share per quarter across all Prospect shares pro forma for the acquisition. Prospect expects to generate a more than 20% IRR and 2x cash-on-cash return on the Patriot acquisition.
* Attractive Price: Prospect is acquiring Patriot for 63% of asset cost, 75% of asset book value, and 54% of equity book value. Purchases of assets below book value, if such assets have existing leverage, imply even greater discounts to equity book value. Prospect's purchase price, assuming Prospect has to pay 100 cents on the dollar for the debt financed portion of the Patriot portfolio, translates into 54 cents on the dollar for the equity portion.
* Synergy: Because Patriot has been in default without forbearance from its lenders, creating a risk of lender foreclosure eliminating Patriot equity value, and because Patriot has ceased its dividend, Patriot's stock price has traded at significant discounts to net asset value. Prospect's acquisition, which pays off Patriot's existing debt, enables both a premium to the Patriot share price as well as a discount to Patriot net asset value, unlocking value for mutual shareholder benefit.
* Scale: With this acquisition, Prospect's gross assets increase by more than 35% and equity capitalization increases by more than 14% without incurring underwriting costs associated with a stock offering. Prospect expects this greater scale to enhance daily trading volume, increase Prospect's attractiveness to lending institutions, and expand access to investment opportunities, including both individual transactions as well as portfolio purchase opportunities similar to Patriot.
* Diversification: Prospect will double its number of portfolio companies to over 60 by adding approximately 30 companies located in 13 U.S. states and covering 18 industry sectors.
* Seniority: 70% of the acquired asset value is in portfolio companies where Patriot has a senior secured position in the capital structure.
* Private Equity Sponsor Expansion: Patriot has pursued a strategy of lending to middle market private equity sponsors. With this acquisition, Prospect deepens its presence in the sponsor marketplace, building on Prospect's own sponsor business in addition to Prospect's direct lending and controlled buyouts.
* Low Leverage: On a combined basis, Prospect's debt to equity is expected to be less than 20%.
* Tax-free: The acquisition is expected to be considered a tax-free reorganization under the Internal Revenue Code.
All amounts set forth herein are estimates subject to change.
"The Patriot acquisition is a perfect example of our previously stated strategy to go on offense in the current opportunity-rich marketplace in which competitors have faltered with overleveraged balance sheets," said M. Grier Eliasek, President of Prospect. "We are pursuing other move-the- needle portfolio opportunities similar to Patriot in addition to continuing our work on individual transactions."
"We are pleased to be completing with Patriot the first of what we hope will be multiple strategically compelling acquisitions to drive superior value to our shareholders," said John F. Barry III, Chief Executive Officer of Prospect. "We would not have signed this agreement but for the creativity, drive, and persistence of Grier Eliasek, and his team, focusing and executing on this wonderful opportunity for Prospect and Patriot. We look forward to having Richard Buckanavage and other Patriot professionals join our team."
Skadden, Arps, Slate, Meagher & Flom LLP served as Prospect's legal counsel in connection with the transaction and related matters.
FBR Capital Markets & Co. served as financial advisor to Patriot in connection with the transaction, and Sutherland Asbill & Brennan LLP served as Patriot's legal counsel in connection with the transaction and related matters.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
Prospect has elected to be treated as a business development company under the Investment Company Act of 1940 (the "1940 Act"). Prospect is required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to Prospect could have an adverse effect on Prospect and its shareholders.
SMOKEFREE INNOTEC INCORPORATED (OTC: SFIO)
"Up 61.54% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/SFIO.php
Smokefree Innotec, Inc. is in the business of designing, developing, manufacturing and marketing a hi-tech, nicotine delivery cigarette-like device which is completely smoke-free and tobacco-free. Smokefree Innotec’s products are designed to protect the non-smoker from second hand smoke and all its effects while providing the smoker a way to enjoy a smoke-free cigarette anywhere, including places where smoking is prohibited. Further, our products will allow the smoker to enjoy smoking while not having to worry about the dangers and ill effects of regular cigarette smoking.
SFIO News:
July 31 - Smokefree Innotec, Inc. Nears Launch of Revolutionary Electronic Cigarette
Smokefree Innotec, Inc. (OTC: SFIO) (www.sfio.us) provided updated information on the launch of its cigarette alternative that operates differently than any other e-cigarette in the market. Thomas Schroepfer, President of Smokefree Innotec, stated, “Our new product will be the world’s first completely smoke-free, ‘hi-tech’ cigarette. Whereas the competitors’ products yield a smoky vapor and have a light at the tip end imitating the fire in a traditional cigarette, inhaling our ‘Real Smoke-free’ e-cigarette yields exclusively nicotine and aroma.” Mr. Schroepfer went on to say, “The most significant distinction between the Real Smoke-free e-cigarette and its competitors is that the Smokefree Innotec product does not utilize cartridges filled with transponder substances and nicotine. We use a slightly adapted, yet traditional, cigarette filter with nicotine interspersed through nanotechnology - enough to emulate the satisfaction of a traditional cigarette, but in a much lower dosage - and produced in
The Real Smoke-free “hi-tech cigarette” will be introduced in August in test markets in the USA, Germany and Belgium, and will become widely available in a rollout beginning in September in the Netherlands, Belgium, Germany, South Africa, New Zealand, Brazil, Australia, Greece and Argentina followed by worldwide distribution in 2010.
PARADIGM MEDICAL INDUSTRIES INCORPORATED (OTCBB: PDMI)
"Up 53.85% on Monday"
Detailed Quote: http://www.otcpicks.com/quotes/PDMI.php
Paradigm Medical Industries, Inc. is a medical device company that develops, manufactures and distributes cutting edge, new innovative products in the diagnostic ultrasound and early glaucoma detection markets. Paradigm has the only patented technology utilizing photon laser for cataract removal. The Company is poised to capture a niche market within the Glaucoma and ultrasound microscopy fields. Paradigm Medical Industries markets its products to ophthalmologists, optometrists, universities, and clinics throughout the
PDMI News:
June 1 - Paradigm Medical Announces Plans to Release Its New Corneal Topographer, the Paravue, in the
Paradigm Medical Industries, Inc. (OTCBB: PDMI) announced that the Company will soon begin to introduce the first of its four new ophthalmic diagnostic devices, the Paravue, during the remainder of 2009. The Paravue is a sophisticated topographer utilizing Placido Disk Technology and an advanced software to provide accurate and detailed analysis of the anterior corneal surface.
Corneal topography — also known as videokeratography or corneal mapping — represents a significant advance in the measurement of the corneal curvature. Most corneal topographers evaluate 8,000 to 10,000 specific points across the entire corneal surface. By contrast, the Paravue processes more than 100,000 points. It also offers corneal wave front analysis with 2, 3 or 4 maps available for comparison.
The Paravue provides both a qualitative and quantitative evaluation of corneal curvature. It does so by utilizing a big placido disk with 24 concentric rings, which project onto the cornea to create a virtual image. The device compares this image to the target size, and the computer then calculates the corneal curvature. Advanced features including advanced rings editing, variable scales, refractive power map and more make the Paravue a valuable tool in the optometric and ophthalmic clinics.
"The addition of the Paravue to our existing ophthalmic product line fills an important segment that was missing," said Paradigm Medical President, Stephen Davis. "We are excited to offer not just another topographer, but one with many impressive features and incredibly friendly software that provides ease of use, flexible mapping and accuracy."
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