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.
Additionally, these investors received five year warrants to purchase 271,889
shares of Modacad stock at a premium of 25 percent above the common stock purchase
price, as well as one year cash-exercise warrants to purchase 323,678 shares
of Modacad stock at a premium of 20 percent above the common stock purchase price
and 15-month cash-exercise warrants to purchase 323,678 shares of Modacad
stock at a premium of 20 percent above the common stock purchase price.
“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.
