Vitacost.com seals $34.64 million private placement of common shares

Investors also receive four-year warrants for 1,680,601 common shares

By Devika Patel

Knoxville, Tenn., Feb. 21 - Vitacost.com, Inc. settled a $34.64 million private placement of stock on Feb. 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company sold 4,920,288 common shares at $7.04 apiece to JHH Capital, LLC, Great Hill Equity Partners III, LP, Great Hill Equity Partners IV, LP, Great Hill Investors, LLC, Freshford Partners, LP, Freshford Master Fund, Ltd. and Baron Small Cap Fund. The price per share is a 0.14% premium to the Feb. 15 closing share price of $7.03.

The investors also received warrants for 1,680,601 shares; the four-year warrants are exercisable $7.04, also a 0.14% premium to the Feb. 15 closing share price.

Houlihan Lokey Capital, Inc. was the agent.

Proceeds will be used to expand and optimize the company's distribution network.

Based in Boca Raton, Fla., Vitacost.com is a retailer of health and wellness products.

Issuer:	Vitacost.com, Inc.
Issue:	Common stock
Amount:	$34,638,828
Shares:	4,920,288
Price:	$7.04
Warrants:	For 1,680,601 shares
Warrant expiration:	Four years
Warrant strike price:	$7.04
Agent:	Houlihan Lokey Capital, Inc.
Investors:	JHH Capital, LLC, Great Hill Equity Partners III, LP, Great Hill Equity Partners IV, LP, Great Hill Investors, LLC, Freshford Partners, LP, Freshford Master Fund, Ltd. and Baron Small Cap Fund
Settlement date:	Feb. 16
Stock symbol:	Nasdaq: VITC
Stock price:	$7.03 at close Feb. 15
Market capitalization:	$202.23 million

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