Tech Industry

Sitestar offers to buy Mothernature.com

Mothernature.com (Nasdaq: MTHR) may be rescued by Sitestar Corp. (OTCBB:SYTE); the Internet holding company said Friday it has offered to buy the troubled dot-com for 75 cents per share in cash, or $11.36 million.

Shares of the company had been trading below a dollar since July 11, a sign that the company was bound to be delisted if it didn't do something soon.

The purchase price represents a 71.4 percent premium from Mothernature's closing price of 44 cents a share on the day the offer was formally submitted.

Sitestar's offer for Mothernature.com's shares will not be subject to financing or a lengthy due diligence process, and will only contain a condition providing for an out in the event of a material adverse change regarding Mothernature.com, the companies said.

Sitestar "asked Mothernature.com's management to extend Sitestar its full support by approving the purchase of the shares," according to a press release Friday.

Sitestar's offer also included a $500,000 break-up fee in the event that management decides to auction off Mothernature.com to other interested acquirers.

"Mothernature.com is highly attractive from both a strategic and financial perspective. Their Internet assets and brand value have long-term growth potential. The company's strong balance sheet is equally appealing," said Clinton J. Sallee, president and CEO of Sitestar.