Individual Investor Group Inc., a financial media company, Friday announced it has raised about $8 million through the sale of several non-core assets.
As reported in InternetNews.com,
EdgarOnline, the provider of business, financial and competitive information devices from U.S. Securities and Exchange Commission data, bought InsiderTrader.com, a subscription-based Web site.
On Friday, Individual Investor also said that the Ticker magazine, a publication for investment planners, advisors and brokers, was sold to 123jump.com, an online resource catering to the needs of
the investors.
The value of the two properties totaled about $7 million.
In addition, the company had previously sold two domain names and issued a shared
warrant, which was valued at $1 million.
The sales were made to enhance shareholder value, according to Jonathan
Steinberg, chairman and CEO, Individual Investor Group .
“We are very pleased to have received $8 million by selling non-core
assets that accounted for only 22 percent, or about $2.6 million of the
company’s $11.4 million revenues for the first six months of 2000,” he said.
“By increasing our cash resources and lowering our expenses, we have
significantly improved the company’s financial position.
Steinberg had been seeking a buyer for the companies since mid-June when
it became apparent that capital was needed to keep the company afloat.
Steinberg noted that in addition to completing the sale, the company
established a $2 million line of credit this quarter.
Through these transactions, the company expects to report a capital gain
of $6.7 million in the third quarter of this year. The operation
additionally anticipates having about $7 million in cash by tomorrow, which
will be the highest level in its history.
The company continues to operate other properties, including
Individual Investor magazine, and has equity stakes in three private
Internet companies: VentureHighway.com, Pricing Dynamics and Tradeworx.
