By Sheri Kasprzak
New York, May 16 - eDiets.com, Inc. has concluded a $9,999,000 private placement as part of its acquisition of Nutrio.com.
Prides Capital Partners, LLC agreed to buy 1.98 million shares at $5.05 apiece and received warrants for 1.2 million additional shares.
The warrants are exercisable at $6.00 each for five years.
The offering is slated to close later this week.
The proceeds from the offering were used to pay for the $8.5 million in up-front payments and up to $2.5 million in earn-out to finance the Nutrio.com acquisition.
Nutrio.com provides nutrition, fitness and wellness programs via the internet.
Also, Prides agreed to buy 7 million shares of eDiets from David Humble, eDiet's founder, who is retiring.
In other news, eDiets.com released its first-quarter earnings, reporting a 6% increase in revenues over 2005's numbers.
eDiets.com, based in Deerfield Beach, Fla., provides online diet and fitness information and advice.
| Issuer: | eDiets.com, Inc.
|
| Issue: | Stock
|
| Amount: | $9,999,000
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| Shares: | 1.98 million
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| Price: | $5.05
|
| Warrants: | For 1.2 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $6.00
|
| Investor: | Prides Capital Partners, LLC
|
| Announcement date: | May 16
|
| Stock symbol: | Nasdaq: DIET
|
| Stock price: | $5.87 at close May 15
|
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