In another example of a publicly traded company raising capital through private investors, Internet document delivery provider NetMoves received $14.3 million May 20 in private equity financing.
“As is the case with small-cap companies across the board, we feel the market is not receptive to secondary public offerings,” said Chief Financial Officer Peter Macaluso. “By comparison, this type of transaction is much more attractive.”
The Edison, N.J.-based company issued a private placement of 2.5 million shares common stock. Brookhaven Capital Management and the Tailwind Fund are among the 20 investors that participated in the offering. Pacific Growth Equities Inc. acted as placement agent for the deal.
Proceeds from the investment will go toward working capital, acquisitions and sales and marketing, Macaluso said.
On April 22, NetMoves changed its name from FaxSav as part of a rebranding strategy.
“The name change reflects the fact that the company is moving into an expansion of services beyond faxing,” Macaluso said. “Our new services will use e-mail as the primary method of transporting messages.”
Through a network of 200 distributors, NetMoves offers business communications services to more than 115,000 desktop subscribers worldwide. More than 30% of its business is conducted outside the United States.
Macaluso said NetMoves may engage in additional rounds of private equity financing if public reception remains the same.
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