PFSweb raises $5 million through private placement of common stock

PFSweb Inc., a provider of e-commerce and fulfillment services, today announced it has sold 5 million shares of common stock for $5 million through a private placement to institutional investors.

“We believe this transaction will further strengthen PFSweb’s solid financial position as well as support our recent growth initiatives,” said Thomas J. Madden, senior partner and chief financial officer. “We believe our strong management team and our world class service offerings clearly position us to capitalize on the opportunities ahead.”

First-quarter sales at PFSweb increased 35% to $110.7 million compared with $81.9 million a year earlier.

PFSweb develops integrated business infrastructure technology and fulfillment services. Through its wholly owned eCost.com subsidiary, it sells new, closeout, and refurbished brand-name merchandise at discount prices for consumers and small business buyers.