RealTime IT News

Individual Investor Raises $8 Million

Individual Investor Group Inc., a financial media company, Friday announced it has raised about $8 million through the sale of several non-core assets.

As reported in InternetNews.com, EdgarOnline, the provider of business, financial and competitive information devices from U.S. Securities and Exchange Commission data, bought InsiderTrader.com, a subscription-based Web site.

On Friday, Individual Investor also said that the Ticker magazine, a publication for investment planners, advisors and brokers, was sold to 123jump.com, an online resource catering to the needs of the investors.

The value of the two properties totaled about $7 million.

In addition, the company had previously sold two domain names and issued a shared warrant, which was valued at $1 million.

The sales were made to enhance shareholder value, according to Jonathan Steinberg, chairman and CEO, Individual Investor Group .

"We are very pleased to have received $8 million by selling non-core assets that accounted for only 22 percent, or about $2.6 million of the company's $11.4 million revenues for the first six months of 2000," he said. "By increasing our cash resources and lowering our expenses, we have significantly improved the company's financial position.

Steinberg had been seeking a buyer for the companies since mid-June when it became apparent that capital was needed to keep the company afloat.

Steinberg noted that in addition to completing the sale, the company established a $2 million line of credit this quarter.

Through these transactions, the company expects to report a capital gain of $6.7 million in the third quarter of this year. The operation additionally anticipates having about $7 million in cash by tomorrow, which will be the highest level in its history.

The company continues to operate other properties, including Individual Investor magazine, and has equity stakes in three private Internet companies: VentureHighway.com, Pricing Dynamics and Tradeworx.