Tech Industry

Drkoop.com lands financing, needs more to stay afloat

Drkoop.com got a shot in the arm Friday when it announced it had received $1.5 million in financing from a merchant bank, but the embattled company also said it's going to need more cash to stay afloat.

Its shares closed up 29/32, or 56 percent, to 2 17/32 Friday.

It also announced it will extend its branding agreement with co-founder Dr. C. Everett Koop, giving the embattled Internet health company a boost amid job cuts and takeover rumors.

Company officials said it got a bridge loan with a merchant bank that provides $1.5 million in funding to meet short-term capital needs in advance of a permanent financing which could be in place in the next several weeks.

The company said that it requires ``significant additional funds to meet its obligations, which will have to be raised through the contemplated permanent financing, or otherwise.''

Last quarter, drkoop.com (Nasdaq: KOOP) posted a loss of $24.8 million, or 80 cents a share, on sales of $4.7 million.

Its shares fell to a low of 1 earlier this month after peaking at 45 3/4 in July.

Reuters contributed to this report.