uBid celebrates Valentine's Day early and closes on another $13.5 million:
Cape Coastal Trading Corporation Completes Second Offering and Closes the Private Placement of Common Stock and Warrants Totaling $58.5 Million
Monday February 6, 2:38 pm ET
CHICAGO, Feb. 6 /PRNewswire-FirstCall/ -- Cape Coastal Trading Corporation (OTC Bulletin Board: CCSR - News) whose uBid, Inc. subsidiary is one of the leading online auction companies in the U.S., announced today it has raised an additional $13.5 million and sold 3,000,000 shares of common stock at $4.50 per share and 750,000 warrants exercisable at $5.85 per share as part of a second closing of the private placement that initially closed on December 29, 2005. This additional funding completes a total capital raise of $58.5 million.
On December 29th, the company completed a $45 million private placement involving the sale of 10,000,000 shares of Cape Coastal Trading Corporation common stock to a group of institutional and accredited investors at $4.50 per share. The Company also issued warrants to purchase an additional 2,500,000 shares of Cape Coastal Trading Corporation common stock exercisable at $5.85 per share. The proceeds from both the first and second closings of the financing of approximately $58.5 million are being used for the retirement of all debt, the redemption of secondary shares and for general working capital purposes. SG Cowen & Co. was the lead placement agent and ThinkEquity Partners was a co-agent. Calico Capital Group, LLC acted as financial advisor for this transaction.
"We are very pleased to complete the second tranche of the overall transaction which puts uBid in a strong financial position with a diverse institutional ownership base," said Robert H. Tomlinson, CEO of Cape Coastal Trading Corporation. "uBid.com now has the ability to execute our vision for a certified, fraud-free online marketplace which further differentiates us, especially in light of the recent national news surrounding fraud and counterfeit product sales on eBay, our direct competitor," he added.
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