THAT News: thatlook Completes Second Financing Round for $10 Million
STROUDSBURG, Pa., Aug. 18 /PRNewswire/ -- thatlook.com (OTC Bulletin Board: THAT - news) today announced that it recently completed negotiations to receive an additional $10 million investment from Sivla, a Sacramento, California media venture capital firm. This investment, when combined with Sivla's initial $30 million investment made at the end of June, increases Sivla's total investment in thatlook.com to $40 million.
Under terms of the agreement, the additional $10 million of media credits will be drawn upon once the initial $30 million is fully utilized. The price per share will be based upon the market price of the company's common stock at the time the credits are drawn upon.
Gerard Powell, President and Chief Executive Officer, made the following remarks at the completion of this transaction. ``We are pleased to conclude this second round of financing with Sivla.
``I think it is important for our shareholders to note two aspects of these financings. First, our business model and plan have always been and will continue to be entirely transaction based. Access to these resources will not change that or cause us to waste shareholder resources pursuing the ephemeral 'branding' that so many other young companies have. We will continue to measure and control tightly the patient generation results of our media spending.
``Second, the price per share for these transactions have been and will be at the market price for our common stock. Therefore, when we get ready to draw upon the second funding round, our shareholders can be assured that they will not suffer the dilution that would occur from pricing the stock at today's price.
``As I noted at the completion of the first round, we can now aggressively pursue our goal of having 1,500 to 2,000 cosmetic surgeons in our program and dominating the elective surgery marketing services business. Furthermore, I anticipate that these resources will be sufficient to allow us to expand our current, and proven, business model beyond the elective cosmetic care arena to providing comparable services in the orthodontics, hair replacement and vision correction areas.''
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