Ableauctions.com Inc. (AMEX:AAC) announced it has entered into an agreement to sell 4,615,385 shares of its common stock to select institutional investors, raising a total of $3 million. The per-share offering price will be $0.65. The investors will also receive warrants to purchase an aggregate of 1,384,616 of common stock at an exercise price of $.80 per share. HPC Capital Management is serving as placement agent for the transaction and will receive warrants to purchase an aggregate of 200,000 shares of common stock.
The transaction is subject to Amex approval. Proceeds from the offering will be used for working capital and will increase the Company's cash and cash equivalents to $6.2 million and Shareholders' Equity to over $7 million. Further details relating to the financing are included in the Form 8-K filed by the Company with the Securities and Exchange Commission.
Ableauctions.com is a high-tech auctioneer that conducts auctions live and simultaneously broadcasts them over the Internet.
