What percentage of buying.edge is owned by IMAA ?
I have seen lots of articles/posts saying it is 71% - I believe this is misleading. This 71% # is correct but not on a fully diluted basis.
Before this round of financing, IMAA owned 7,990,000 shares out of 8,500,000 shares (94%). This 94% number is not on a fully diluted basis. From the 10-Q - In addition, buyingedge.com has reserved 4,816,183 shares of its common stock for issuance under its 1999 Stock Option Plan, of which 1,555,000 options were issued prior to June 30,1999 at an exercise price of $.50 per share.
In this round of financing, buyingedge.com issued 5,319,149 shares of Series A Preferred Stock (Series A) for $1.88 per share for aggregate gross proceeds of $10,000,000.
-- The Preferred stock converts to common stock on a 1:1 ratio.
From the company's press release buyingedge.com, has completed financing of $10 million. The investment group led by CMGI's @Ventures arranged private preferred stock financing, representing approximately 29 percent of the fully diluted buyingedge.com equity.
-- Note the term "fully diluted".
If 5,319,149 represents 29% - this means the fully diluted # of shares = 18,342,000
% owned by IMAA on a fully diluted basis = (7,990,000/18,342,000)*100 = 43.6% +/- (1 to 2%)
Note - The term "fully diluted basis" assumes that all in-the-money options have been exercised. IMAA does not own any options (they did not mention owning them in the 10-Q. buying.edge must have issued quite a few options between June 30 and August 12.
Regards,
Rajiv |
