RealTime IT News

Open Market Gets $20 Million Cash Infusion

E-commerce firm Open Market Inc. said that it closed a $20 million private placement of common stock to Internet investor firm CMG Information Services Inc. in Andover, MA and a fund managed by Heights Capital Management.

"The additional working capital provided by this financing strengthens our balance sheet and gives the company more financial flexibility," said Regina Sommer, senior vice president and chief financial officer of Open Market in Burlington, MA. "In addition, this investment solidifies our strong relationship with CMG Information Services, who is also a customer and a partner."

Under the terms of the agreement, Open Market sold an aggregate of 1,338,912 shares of unregistered common stock at a price of $14.94 per share. In addition to the common stock, the new investors received warrants to purchase an additional 334,728 common shares at a price of $16.43 per share.

Included in the terms of the agreement are certain adjustments, and other provisions including a repurchase provision which becomes operative in the event that the registration statement is not declared effective in a timely manner.

PaineWebber Inc. served as the company's placement agent.