Online auction site uBid Inc. announced it has become a publicly traded company after a merger with a subsidiary of Cape Coastal Trading Corporation, whose only business following the merger will be the execution of uBid’s business plan under the uBid name.

Concurrent with the merger, the combined company completed a $45 million private placement involving the issuance of 10,000,000 shares of Cape Coastal Trading Corporation common stock to a group of institutional and accredited investors at $4.50 per share. The Company also issued to the investors warrants to purchase an additional 2,500,000 shares of Cape Coastal Trading Corporation common stock exercisable at $5.85 per share. The net proceeds from the financing of approximately $40 million will be used for the retirement of all debt and for general working capital purposes. SG Cowen & Co., LLC was the lead placement agent and ThinkEquity Partners was a co-agent. Calico Capital Group acted as financial advisor for this transaction.

“This is a watershed moment in our company’s history,” said CEO Robert H. Tomlinson, Jr. “It caps a successful rebuilding effort over the past 30 months and now affords us the resources we need to drive significant growth and expansion towards becoming a major force in the e-commerce world.”

www.ubid.com

Posted: 12|31|05 at 10:27 am. Filed under: Auction News.