12-31-2005, 03:13 PM
Quote:uBid, Inc., one of the leading online auction companies in the U.S., announced today that it has merged with a subsidiary of Cape Coastal Trading Corporation , whose only business following the merger will be the execution of uBid's business plan under the uBid name. Cape Coastal Trading Corporation plans to change its corporate name to uBid, Inc. as soon as corporate law requirements can be satisfied, currently anticipated within 30 days following the merger. 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 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.
"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."...
full press release: http://biz.yahoo.com/prnews/051230/cgf004.html?.v=40
uBid was founded in 1997.