Modacad Closes Investment $8.5 Million Round
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Los Angeles-based Modacad Inc., an e-commerce solutions provider for the fashion industry, said it has completed a privately placed investment of common stock and warrants valued at $8.5 million.
The lead investor was Castle Creek Technology Partners LLC. Other investors included Marshall Capital Management Inc., an affiliate of Credit Suisse First Boston.
Concurrently, Modacad announced that Intel Corp. has taken a $5 million equity position in Modacad in exchange for its right to present and future royalty streams under an existing business agreement.
The financial investors, led by Castle Creek, received $8.5 million of common stock priced at $10.98 per share.
"This investment will expand our institutional shareholder base and give us access to the capital necessary to accelerate our expansion in the Internet e-commerce marketplace," said Maurizio Vecchione, Modacad's president and chief operating officer.
In return for its royalty streams, Intel received $5 million of Modacad common stock, also priced at $10.98 per share. Intel also received warrants to purchase a proportionate number of shares of Modacad stock.
As the result of this transaction, Intel and Castle Creek will each become 6.2 percent shareholders in Modacad, which markets 3-D rendering and digital content management applications.
Modacad recently launched a new apparel e-commerce site at www.styleclick.com, featuring fashion, fitness and beauty products, that allows users to comparison shop among leading brands.