Palo Alto, CA-based I-Storm Inc., which plans to build and operate e-commerce
storefronts on the Web, said it completed a private placement offering
resulting in gross proceeds of $5 million.
The company issued 9 percent Series B Cumulative Convertible Preferred
Stock. A total
of 407,900 Series B shares were sold at a price per share of $12.25. Net
proceeds of $4.4 million were realized after investment banker fees and
expenses of approximately $0.6 million.
The majority of the proceeds were used to retire the company’s outstanding
bridge loans, to almost retire its loans under a factoring agreement, and to
pay down many of its outstanding expenses and professional fees. The balance
of the proceeds will be used for the development of I-Storm Cyberstores and
for general working capital purposes.
Weatherly Securities Corp., the placement agent, also received 1 million
shares of common stock and warrants to purchase 40,790 shares of Series B
preferred stock.
I-Storm said it plans to partner with Fortune 500 companies to develop online
stores.
By leveraging its partner’s existing brand, fulfillment, service and support
structures, I-Storm will focus on its core competencies of storefront
construction and online selling, while the partners stay focused on their
existing businesses and traditional markets.
