2TheMartcom, Online Retailer, Sells Shares at 89% Discount
Irvine, California, Nov. 30 (Bloomberg) -- 2TheMart.com, an unprofitable Internet auction site, sold shares at a discount of as much as 89 percent in the last month after an earlier attempt to raise funds fell short.
The Irvine, California-based company sold 2 million shares on Nov. 18 at 1 1/2, 89 percent less than the closing price that day, when it launched its Web site, according to a filing with the Securities and Exchange Commission. On Oct. 25, it sold 1 million shares at 1, an 87 percent discount to the closing price.
The below-market sales followed a failed effort over the summer to raise $10 million by selling shares at 10 each. 2TheMart closed the sale in two months after selling 53,000 shares of the 1 million shares offered. The offering began on July 12, when 2TheMart shares closed at 17 1/8.
The shares fell 2 1/2 to 11 3/4 in afternoon trading today. They had rocketed 25-fold in January, to as high as 50, following the company's initial public offering. They've since plunged as the company's Web site was delayed, amid the difficulty raising capital and as its first auditor departed.
2TheMart lost $1.9 million between Jan. 8, when it began business, and June 30. It had no revenue. The market value of its 27 million shares has fallen to about $317 million from $1 billion in January.
Steven Rebeil, chairman, and Dominic Magliarditi, president, were both out of the office and not available for comment on the latest share sales.
Nov/30/1999 13:24
For more stories from Bloomberg News, click here.
(C) Copyright 1999 Bloomberg L.P.
Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News.
The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P. |
