PC Quote gets $5 million infusion
In desperate need of financing and facing a possible delisting, PC Quote said it has signed an agreement with an investor for a $5 million cash infusion.
Under the letter of intent, PC Quote will receive the funds in three stages beginning October 14. The company will issue 5 million new shares to the investor and will offer the investor five-year warrants to purchase 500,000 shares at $2 a share.
PC Quote plans to use $4 million of the infusion as bridge financing, until it makes a secondary offering to its shareholders later this year.
The company, which said it needs to "raise capital immediately," is asking AMEX to allow it to issue more than 20 percent of its outstanding shares without shareholder approval. PC Quote said its request is based on the typically time-consuming process of gaining shareholder approval.
"PC Quote currently falls below the American Stock Exchange guidelines for continued listing," said Jim Porter, the company's CEO, in a statement. "While there is no assurance that the listing will be continued, the capital infusion will improve the firm's financial condition."
The company could not be reached for additional comment. Shares of PC Quote ended the day at 2, down 1/8 over yesterday.
Last July, the company announced that its president and chief operating officer, Howard Meltzer, had resigned to pursue other interests. His position was never filled, and the duties were absorbed by Porter.
And in June, the provider of online, real-time stock and market quotes announced that negotiations to sell its core business to Track Data had fallen through.
The company said that, with the $1.3 million deal, it would undertake a "substantial" cost-reduction plan as it continues negotiations with its strategic partners.
Revenues for the quarter ending June 30 fell to $4.2 million, compared with $4.4 million a year ago. PC Quote has posted five consecutive quarters of losses, with a loss of $4.2 million in the most recent quarter.