The funding will be used to reduce debt and achieve profitability sooner, Ebiz chief executive Dave Shaw said in a statement. The funding was the result of the recent merger of Ebiz and LinuxMall, a deal that closed Oct. 11.
The Canopy Group, founded by former Novell CEO Ray Noorda, has invested in other Linux companies as well, most prominently publicly traded Caldera Systems and Lineo, which has filed to go public.
"We believe Ebiz's stock is undervalued and find this investment an attractive fit to our strategies and focus," Canopy Group president Ralph Yarro said in a statement. The company bought 2.5 million shares of Ebiz stock, traded over the counter, on Oct. 19.