RateXchange completes $3.25 million private placement
Nov. 30, 2001--RateXchange Corp. has announced the completion of a $3.25 million private placement financing, representing a 30% over-subscription from the original $2.5 million sought.
RateXchange Corp. has announced the completion of a $3.25 million private placement financing, representing a 30% over-subscription from the original $2.5 million sought. Participants included institutional investors Morgens Waterfall Vintiadis and Renaissance Capital Group Inc., in addition to a small group of high net worth investors, including officers and directors of the Company.
The offering consisted of 65 units, each representing a $50,000 fixed-price convertible note and warrants to purchase 12,500 shares of the Company's common stock. Proceeds of the offering will be used to support the Company's operating plan to provide brokerage, consulting and information services in bandwidth and other related products, and to supply additional working capital.
"We were pleased to receive considerable interest in this financing given the difficult capital raising environment," says Jon Merriman, RateXchange Chairman and CEO. "This funding, in addition to the recent sale of our futures platform to CQG, Inc., provides us with the capital to grow and fully execute our revenue plan. We also see numerous opportunities in today's volatile market. This funding gives us the flexibility to attack those opportunities that best fit our strategy."
RateXchange Corp. (San Francisco) is a publicly traded transaction services firm that combines traditional voice brokerage and technology-based trading systems to help financial institutions, network providers, and energy merchants understand and compete in newly commoditizing industries. For more information, visit the company's Web site at www.ratexchange.com.