Bluefly Inc., Internet retailer of discounted designer fashions, has received a commitment for up to $4 million in additional financing on a standby basis from Soros Private Equity Partners, Bluefly announced today.
Bluefly says it now has sufficient resources to fund operations through the end of the year.
Affiliates of Soros will provide the additional financing as requested by the non-Soros members of Bluefly`s Board of Directors at any time before Jan. 1.
In exchange for this commitment, Bluefly has issued to affiliates of Soros warrants to purchase 100,000 shares of Bluefly`s common stock at $1.68 per share, which represents the trailing 20-day average of the closing sale price of Bluefly`s common stock on the date the warrants were issued. The warrants are exercisable at any time before March 27, 2007.
To date, affiliates of Soros have invested $40 million in Bluefly in exchange for an equity stake of 78% of the company. Of that $40 million, $30 million has been invested since February 2000 when many investors began to lose interest in the e-retail sector.