Inuvo Announces Closing of $2.7 Million Financing
Capital Will Fund Strategic Plan
Press Release Source: Inuvo, Inc. On Wednesday June 22, 2011, 11:07 am EDT
CLEARWATER, Fla.--(BUSINESS WIRE)-- Inuvo®, Inc. (NYSE Amex: INUV) is pleased to announce that it has completed the sale of $2.7 million of its common stock and warrants in a registered direct offering. Inuvo will issue 1,350,000 shares of its common stock and five year warrants to purchase an additional 675,000 shares. The common stock sold in the offering was priced at $2.00 per share which was equal to the closing price of the stock on June 20, 2011. The warrants are exercisable at $2.20 per share, and all securities sold in this offering are issued pursuant to a shelf registration statement.
The proceeds will be used to fund increased sales and marketing efforts along with working capital requirements for the Company’s strategic plan, and to improve the Company’s stockholders’ equity position, an important action in Inuvo’s plan to maintain compliance with the continued listing standards of the NYSE Amex.
“Inuvo is extremely pleased with the fact that we were able to complete this entire capital raise through the support of our existing investors and insiders,” stated Richard K. Howe, President and Chief Executive Officer of Inuvo. “Our investors have signaled their continued confidence in the potential of our new initiatives. We intend to use the proceeds from this and subsequent financings to further advance the development of our daily deals web property Kowabunga®; our e-commerce/credit platform, launching initially with Kidzadu™; and our proprietary loyalty exchange platform BargainMatch™.”
Management believes that these three major strategic initiatives being developed by Inuvo provide the means to become an important participant in the rapidly expanding digital marketing and group-buying industries. These financings will allow Inuvo to expand the technological capabilities and resources necessary to become a digital marketing industry leader.
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