CyberCash Raises $15 Million in Private Placement
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CyberCash Inc. said it has raised $15 million in equity capital through a private placement of convertible preferred stock and options to two private equity funds.
The company will receive a second investment of $15 million if certain conditions are satisfied. James Condon, CyberCash CFO, said "We believe that, with this additional capital, CyberCash will be able to take advantage of opportunities that will reinforce its position as the leading provider of Internet payment services."
The preferred stock issued in the transaction is convertible into common stock at a conversion price based on the market price for CyberCash stock on the Nasdaq exchange during a specified period immediately preceding the election to convert.
During the first five months, the holders may convert only if the market price of the common stock is above $11.65 per share or if the market price of the common stock increases by at least 25% during the measurement period. The company also issued to the preferred stock investors options to purchase common stock at an exercise price based on the current market price and the stock market price at the end of 1998.
CyberCash provides secure Internet commerce solutions that enable financial transactions on the Internet. The company offers a suite of Internet payment solutions, including a credit card service, which handles payments using major credit cards; a micropayment service that enables cash transactions; and a secure electronic check service that allows consumer-to-business and business-to-business funds transfer via checking accounts.