Aradyme looks to raise $3 million in private placement of common or preferred stock

By Sheri Kasprzak

New York, Feb. 17 - Aradyme Corp. said it may head to the PIPE market this year to raise at least $3 million.

The company, according to its latest form 10-QSB filed with the Securities and Exchange Commission, said it does not have enough revenue to cover its operating costs.

"The ability of the company to continue as a going concern is dependent on the company obtaining adequate capital to fund operating losses until it becomes profitable," said the report. "In order to continue as a going concern, develop a reliable source of revenues and achieve a profitable level of operations, the company will need, among other things, additional capital resources.

"Management has been successful negotiating contracts that are expected to increase revenue significantly and is in the process of negotiating additional contracts, and plans to raise at least $3 million through private placement of its preferred and/or common stock to sustain operations until revenues are sufficient to cover costs."

In December 2005, Aradyme signed a stock purchase agreement with a single investor for up to 15 million shares at $0.20 each. The shares will be sold in a series of tranches over 15 months.

In the first tranche, which has already closed, the investor bought $1 million in shares.

For the quarter ended Dec. 31, 2005, Aradyme reported a net loss of $722,175, compared with a net loss of $813,463 for the same quarter of 2004.

Based in Orem, Utah, Aradyme is a data management company focused on data migration and conversion, integration and application development.

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