Live Current Media Raises Much Needed Cash
Wednesday, November 19th, 2008
Live Current raises $1.06 million in private placement.
Live Current Media (OTCbb: livc.ob) is facing a serious cash crunch, but it eased somewhat today. The company announced that it has raised $1.06 million through a private placement. Investors include Live Current CEO and Chairman, Geoffrey Hampson, the Companyâ€™s President and COO, Jonathan Ehrlich and Chief Corporate Development Officer, Mark Melville, along with outside investors. Hampson has already invested in the company, and it’s reassuring that he is pumping more money into the company.
The investors paid 65 cents per unit, a premium of 27% to yesterday’s closing price of 51 cents, but shares had traded at 65 cents earlier this week. In addition, each unit includes warrants to purchase shares in the future: a two-year warrant to purchase one half of a common share at a 20% premium to the unit price and a three-year warrant to purchase one half of a common share at a 40% premium to the unit price.
Live Current expects to close more private placement over the next 15 days to raise an additional $1 million. The company is also working on selling some of its premium domain names including Brazil.com and other geo domain names in an effort to raise $6 million to $10 million.
The company makes a gross profit from its Perfume.com business, but overhead costs and major investments in its cricket ventures are hurting cash flow.