By Sheri Kasprzak
Atlanta, June 27 - Bluefly, Inc. said it has completed a $7 million private placement of convertible preferred stock.
The preferreds are convertible into common shares at $2.32 each, a 5% premium to the company's closing stock price at the time the deal was signed.
HPC Capital Management LLC was the placement agent in the offering, and the investors were led by Palisades Master Fund and included two funds affiliated with Bluefly's majority shareholder, Soros Fund Management LLC.
The investors, except for Soros, will also receive warrants for 600,000 shares, exercisable at $2.87 each for three years.
New York-based Bluefly sells designer clothing online. The proceeds will be used for a marketing campaign.
Issuer: | Bluefly, Inc.
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Issue: | Convertible preferred stock
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Amount: | $7 million
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Conversion price: | $2.32
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Warrants: | For 600,000 shares
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Warrant expiration: | Three years
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Warrant strike price: | $2.87
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Placement agent: | HPC Capital Management LLC
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Investors: | Palisades Master Fund, Soros Fund Management LLC, others
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Settlement date: | June 27
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Stock price: | $2.19 at close June 24
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