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
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.