Commerce One has received a $10 million investment from BayStar Capital Management, the company announced Thursday. The publicly traded company, based in Pleasanton, Calif., makes business software for streamlining corporate purchasing. It said it intends to use the money for "working capital purposes" and to help support a recently released set of products called Commerce One Conductor. In recent years, the former Internet high-rider has seen its stock price and its sales drop dramatically, as many potential customers pulled the plug on their e-business projects.
Under the terms of the agreement, Commerce One issued shares of preferred stock convertible into 4.3 million shares of common stock along with warrants exercisable for 2.2 million shares of common stock. The conversion price of the preferred stock is $2.32 per share, and the exercise price of the warrants is $2.71 per share. The five-day average closing bid price of Commerce One's common stock through July 9 was approximately $2.26.