RealTime IT News

Digital Courier Technologies Closes on Equity Financing

Digital Courier Technologies Inc., a developer of e- commerce and content delivery software, said it has received $3.6 million in a private placement of convertible preferred stock and warrants.

The institutional investor, Brown Simpson Strategic Growth Funds, had previously invested $3.6 million in Digital Courier's common stock.

"We will continue to respond to the increased market demand for e-commerce products and content services, and the additional financing enables us to focus on meeting that demand," said R.J. Pittman, chief executive officer of Digital Courier.

The financing was a private placement of preferred stock which is convertible, at a fixed conversion price of $4.50 per share, without price resets, into common stock, plus warrants to purchase 800,000 shares of common stock at an initial exercise price of $5.23 per share.

In addition to warrants already owned by Brown Simpson with an aggregate exercise price of $10 million, they have further committed to invest an additional $11 million in convertible preferred stock and additional warrants with an aggregate exercise price of $12 million. The company can call on this additional investment of $11 million once the closing bid price of its common stock is above $7 for a period of 30 consecutive days.

Digital Courier supplies businesses and Web portals with e-commerce, payment processing and content delivery software. Its netClearing division offers secure credit card and payments processing services and technology.

Its current content offerings include: WeatherLabs, an online weather information service, VideosNow, and BooksNow.