It was sad to see Anthonys past problems John. So what are you trying to tell me that this article justifies TMRT being a scam? And yes John, we read about the 10 million. Maybe you missed this;
2TheMartcom Sells Stock at Discount of 89%
Irvine, California, Nov. 30 (Bloomberg) -- 2TheMart.com, an 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.
Net Investments Inc., controlled by Ohio investor Raymond Park, bought those shares, as well as 300,000 shares at 3.33 on Oct. 8, a price that was 33 percent below the day's closing price. Net Investments now owns 4.5 million shares, or 18.2 percent of the company, according to a regulatory filing.
On Oct. 25, the 2TheMart.com 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 1 million shares at 10 each as the company warned it was short of cash. 2TheMart closed the sale in two months after selling 53,000 shares. The offering began on July 12, when 2TheMart shares closed at 17 1/8.
The shares fell 3 1/8 to 11 1/8 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 low as 2 1/4 in October after the company's Web site was delayed, amid the difficulty raising capital and as its first auditor departed.
Lower Value
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 $300 million from $1 billion in January.
A share purchase agreement in the Park investment calls for the controlling shareholders of 2TheMart to ''take all actions necessary'' to increase the company's board to five members from two and to elect three independent directors satisfactory to Park's company by May 9.
In filings this week, the company said that on Nov. 18 the company reached an agreement with International Business Machines Corp. to pay about $1.8 million it owes for hardware and software in setting up its Web site. That amount, plus interest at an annual 13.5 percent, is to be paid in 12 monthly payments starting on Jan. 31, 2000.
The company filing said that as of Nov. 19, it had paid in full the $7.9 million it owed IBM for hardware and $1.3 million of the amount owned for Web site development.
Steven Rebeil, chairman, and Dominic Magliarditi, president, were both out of the office and not available for comment. Park's office said he was traveling and couldn't be reached.
Nov/30/1999 16:19
For more stories from Bloomberg News, click here.
(C) Copyright 1999 Bloomberg L.P.
|
