VC-backed IZEA to raise $12 mln in private placement

IZEA has agreed to sell approximately 34.2 million shares of its stock at a price of $.35 per share in a $12 million private placement. Special Situations Funds led the round. Headquartered in Orlando, Florida, IZEA is a provider of social media sponsorship. Its backers include Inflexion Partners, DFJ and Village Ventures.

PRESS RELEASE

Orlando, Florida (February 12, 2014) – IZEA, Inc. (OTCQB: IZEA), the leader in Sponsored Social, today announced that it has entered into definitive Securities Purchase Agreement to raise $12 million in a private placement of common stock and warrants. The round was lead by Special Situations Funds with participation by IZEA board members, CEO and other accredited investors.
Pursuant to the terms of the private placement, the Company has agreed to sell an aggregate of approximately 34.2 million shares of common stock at a price of $0.35 per share. Investors will also receive warrants to purchase up to approximately 17.1 million shares of common stock at an exercise price of $0.35 and warrants to purchase up to approximately 17.1 million shares of common stock at an exercise price of $0.50. The warrants will expire 5 years from the date on which the warrants are issued. Pursuant to the Securities Purchase Agreement, the Company is required to file a registration statement for the resale of the shares of common stock issued and issuable pursuant to the warrants. The closing of the offering is subject to the satisfaction of customary closing conditions.
Craig-Hallum Capital Group is acting as exclusive placement agent in connection with this offering.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock and the shares underlying the warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
About IZEA
Founded in 2006, IZEA is the pioneer of Social Sponsorship. The company builds cloud-based marketplaces that connect brands with creators who blog, tweet, pin, and post on their behalf. Brands receive influential consumer content and engaging, shareable stories that drive awareness. Creators are compensated for their participation and partnership. For more information about IZEA, visit http://corp.izea.com.

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