The world’s largest retailer will end free shipping for online orders under $50 Canadian starting April 2.
Capital continues to flow into dot-commers, as Overstock.com Inc., CGI Holding Corp.’s WebSourced Inc. and Ecometry Corp. plan growth through investments.
Executives at three companies in the Internet retailing industry are looking to extend their reach with the help of recent infusions of cash.
Overstock.com Inc. hasn’t made any commitments or entered into any negotiations yet, but management plans to spend part of the proceeds from the sale of a stock offering to acquire complementary technology or related businesses.
Overstock, which has headquarters in Salt Lake City, expects to raise $65.3 million from the sale of 1.2 million shares of common stock and $100 million from selling convertible notes, the company says.
Stock will sell at $57.53 a share as part of an underwritten public offering under the company’s existing shelf registration statement. The notes carry an interest rate of 3.75% and will come due in 2011.
Meanwhile, Lake Bluff, Ill.-based CGI Holding Corp., parent of search engine management company WebSourced Inc., is also looking to grow with the help of new funding.
“Our acquisition pipeline is full,” says CGI chairman T. Benjamin Jennings, “and we expect to extend our leadership position in online and traditional advertising and marketing, driven by our search engine marketing, online dating and other complementary businesses.”
CGI has the means, Jennings says. “With our rapidly expanding base businesses and over $17.9 million in cash in the bank,” he says, “we are extremely well positioned to grow the company internally and via a series of acquisitions.”
The company has raised $15.05 million through a private placement of common stock and warrants. The placement consisted of 4.3 million unregistered shares of the company’s common stock sold to a group of institutional and accredited investors at $3.50 a share, plus warrants to purchase 2.365 million shares of common stock at an exercise price of $4.12 per share.
At Ecometry Corp., Delray Beach, Fla., founders Will Smith and Allan Gardner will retire with the recapitalization of the company. Control is passing to Golden Gate Capital, which sees opportunities to expand Ecometry.
“Ecometry is well positioned to grow both organically and via acquisitions,” says David Dominik, managing director at San Francisco-based Golden Gate Capital. “Ecometry is a clear product leader and offers a strong platform to address the complex needs of the multi-channel retail marketplace.” m