RealTime IT News

CyberCash Secures $10 Million in Equity

CyberCash Inc., a Web payment solution firm, Thursday announced it has raised $10 million in equity capital to support the roll out of its new InstaBuy shopping service.

The funds were raised through a private placement of common stock and warrants. The private placement involves the issuance of units of one share of the company's common stock and a warrant to purchase 0.75 shares of the company's common stock. The purchase price is $16.40 a share.

In addition, the investors have agreed to purchase additional units for $5 million in cash after the registration statement is declared effective by the SEC.

Rose Glen Capital Management, L.P. and The Palladin Group, L.P. provided the financing.

"The additional funds will help to support marketing, sales and customer support efforts behind CyberCash's InstaBuy Service unveiled in August of 1998," said James J. Condon, chief operating officer and chief financial officer for CyberCash.

"The InstaBuy Service meets the needs of merchants who want to convert a higher percentage of Web visitors to buyers, addresses the desires of consumers who want the convenience of one-click shopping and solves a problem for banks that want to strengthen their relationships with customers online."