Canadian investment banker Yorkton Securities underwrote the issuance of special units convertible to 5 million shares and 6.25 million warrants.
Executives said the new capital will allow the company to continue to develop and deploy additional online and offline solutions, as well as step up its marketplace plans.
“We are pleased to have VerticalNet, a pioneer in the B2B marketplace, included in this round of financing,” BrandEra president and chief executive officer Marvin Igelman said. “The financing will help us grow our sales and marketing channels, as well as extend our leading position in the marketplace.”
BrandEra.com’s business-to-business destination for marketing, advertising and creative professionals includes online source books, demonstration portfolios, job listings and community boards.
The company is hoping that the news could help turn around its slagging market valuation.
The announcement briefly forced the price up to the $2 mark Friday, but it dropped down to less than $1 1/2, just below where it opened that day — and still 82 percent off its March high of $8 1/4. Early last month the stock price hit an all-time low, at $ 5/8.