Online auction site uBid Inc. announced it has become a publicly traded company after a merger with a subsidiary of Cape Coastal Trading Corporation (OTC Bulletin Board: CCSR), whose only business following the merger will be the execution of uBid's business plan under the uBid name.
Cape Coastal Trading Corporation will change its corporate name to uBid Inc., and uBid will retain its senior management team led by CEO Robert H. Tomlinson, Jr., Timothy E. Takesue, Executive VP and all uBid Inc. employees. The merger has resulted in uBid becoming a publicly traded company, and uBid's management and Board of Directors have assumed operational control of the surviving entity.
Concurrent with the merger, the combined company completed a $45 million private placement involving the issuance of 10,000,000 shares of Cape Coastal Trading Corporation common stock to a group of institutional and accredited investors at $4.50 per share. The Company also issued to the investors warrants to purchase an additional 2,500,000 shares of Cape Coastal Trading Corporation common stock exercisable at $5.85 per share. The net proceeds from the financing of approximately $40 million will be used for the retirement of all debt and for general working capital purposes. SG Cowen & Co., LLC was the lead placement agent and ThinkEquity Partners was a co-agent. Calico Capital Group acted as financial advisor for this transaction.
"This is a watershed moment in our company's history," said CEO Robert H. Tomlinson, Jr. "It caps a successful rebuilding effort over the past 30 months and now affords us the resources we need to drive significant growth and expansion towards becoming a major force in the e-commerce world."
uBid operates an online marketplace located at http://www.ubid.com offering new, close-out, overstock and refurbished merchandise to both consumers and businesses through a trusted auction style and fixed price format.
uBid's Chief Marketing Officer Anthony Priore said, "Going public brings increased awareness and additional capital, much of which will be invested back into the business such as in growing our uBid Certified Merchant (UCM) program." He could not disclose details regarding the company's 2006 plans.
Founded in 1997, uBid's predecessor completed an initial public offering in December 1998 and was subsequently acquired by CMGI Inc. in April 2000. In April 2003, uBid became a majority-owned subsidiary of the Petters Group Worldwide LLC. Both CMGI and Petters Group Worldwide will remain as shareholders in the surviving public entity.
http://www.ubid.com
