Rainmaker Systems Receives $3.9 Million In Direct Common Stock Offering
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- Published in DemandGen Reports
Rainmaker Systems, a provider of BtoB e-Commerce sales solutions, today announced the completion of its registered direct offering of units consisting of one share of common stock and a warrant to purchase 0.40 shares of common stock. The shares of common stock and warrants were offered and sold after an effective registration statement previously announced with the Securities and Exchange Commission.
Nearly 3.5 million shares of Rainmaker’s common stock were sold at $1.05 per share and the warrants to purchase approximately 1.4 million additional shares at $1.40 per share to purchasers comprised of new investors and existing stockholders. Approximately 136,000 shares of common stock were sold at a price of $1.29 per share, with warrants to purchase close to 54,000 additional shares at $1.40 per share, to members of the company’s Board of Directors.
The solution provider received net proceeds of roughly $3.4 million from the offering after deducting placement agent’s commissions and estimated offering expenses and intends to use the proceeds from the sale for working capital and general corporate purposes.
“This additional capital will further strengthen our balance sheet and support our strategic initiatives to capitalize on the significant opportunity we see for our BtoB e-Commerce solutions and accelerate our revenue growth,” said Michael Silton, CEO of Rainmaker Systems.
In May 2011, Rainmaker Systems launched a BtoB e-Commerce store for a Fortune 500 networking equipment manufacturer. The solution is focused on encouraging SMB customers to trade-in their old networking equipment for new equipment from the manufacturer, to accommodate traditional business buying process needs such as trials, banded pricing, quotations and purchasing via corporate credit card, wire transfers or purchase orders.