PFSweb Announces $5.0 Million Private Placement of Common Stock
02 June 2006 - 7:18AM
Business Wire
PFSweb, Inc. (Nasdaq:PFSW), a global provider of business process
outsourcing (BPO) solutions and web commerce retailer, today
announced that it has sold to certain institutional investors
5,000,000 shares of common stock at $1.00 per share in a private
placement, resulting in gross proceeds of $5.0 million. "We believe
this transaction will further strengthen PFSweb's solid financial
position as well as support our recent growth initiatives," said
Thomas J. Madden, Senior Partner and Chief Financial Officer. "We
believe our strong management team and our world class service
offerings clearly position us to capitalize on the opportunities
ahead." The securities sold in this private placement have not been
registered under the Securities Act of 1933 or any state securities
laws and unless so registered may not be offered or sold except
pursuant to an exemption from, or in a transaction applicable state
securities laws. However, PFSweb has agreed to file a registration
statement within 45 days for the resale of the shares of the common
stock. This announcement is neither an offer to sell nor a
solicitation of an offer to buy any of these securities. About
PFSweb, Inc. PFSweb develops and deploys integrated business
infrastructure solutions and fulfillment services for Fortune 1000,
Global 2000 and brand name companies, including third party
logistics, call center support and e-commerce services. The company
serves a multitude of industries and company types, including such
clients as Adaptec, CHiA'SSO, FLAVIA(R) Beverage Systems,
Hewlett-Packard, International Business Machines, Nokia, Raytheon
Aircraft Company, Rene Furterer USA, Roots Canada Ltd., Smithsonian
Institute and Xerox. Through its wholly owned eCOST.com subsidiary,
PFSweb also serves as a leading multi-category online discount
retailer of high-quality new, "close-out" and refurbished
brand-name merchandise for consumers and small business buyers. The
eCOST.com brand markets more than 100,000 different products from
leading manufacturers such as Apple, Canon, Citizen, Denon,
Hewlett-Packard, Nikon, Onkyo, Seiko, Sony, and Toshiba primarily
over the Internet and through direct marketing. For more
information, please visit the company's websites at
http://www.pfsweb.com and http://www.ecost.com. The matters
discussed herein consist of forward-looking information under the
Private Securities Litigation Reform Act of 1995 and is subject to
and involves risks and uncertainties, which could cause actual
results to differ materially from the forward-looking information.
PFSweb's Annual Report on Form 10-K and Form 10-Q for the year
ended December 31, 2005 and quarter ended March 31, 2006,
respectively, identify certain factors that could cause actual
results to differ materially from those projected in any forward
looking statements made and investors are advised to review the
Annual Report and Quarterly Report and the Risk Factors described
therein. These factors include: our ability to retain and expand
relationships with existing clients and attract and implement new
clients; our reliance on the fees generated by the transaction
volume or product sales of our clients; our reliance on our
clients' projections or transaction volume or product sales; our
dependence upon our agreements with IBM; our dependence upon our
agreements with our major clients; our client mix, their business
volumes and the seasonality of their business; our ability to
finalize pending contracts; the impact of strategic alliances and
acquisitions; trends in the market for our services; trends in
e-commerce; whether we can continue and manage growth; changes in
the trend toward outsourcing; increased competition; our ability to
generate more revenue and achieve sustainable profitability;
effects of changes in profit margins; the customer and supplier
concentration of our business; the unknown effects of possible
system failures and rapid changes in technology; trends in
government regulation both foreign and domestic; foreign currency
risks and other risks of operating in foreign countries; potential
litigation; our dependency on key personnel; the impact of new
accounting standards and rules regarding revenue recognition, stock
options and other matters; changes in accounting rules or the
interpretations of those rules; our ability to raise additional
capital or obtain additional financing; our ability and the ability
of our subsidiaries to borrow under current financing arrangements
and maintain compliance with debt covenants; relationship with and
our guarantees of certain of the liabilities and indebtedness of
our subsidiaries; whether outstanding warrants issued in a prior
private placement will be exercised in the future; the transition
costs resulting from our merger with eCOST; our ability to
successfully integrate eCOST into our business to achieve the
anticipated benefits of the merger: eCOST's potential
indemnification obligations to its former parent; eCOST's ability
to maintain existing and build new relationships with manufacturers
and vendors and the success of its advertising and marketing
efforts; and eCOST's ability to increase its sales revenue and
sales margin and improve operating efficiencies. PFSweb undertakes
no obligation to update publicly any forward-looking statement for
any reason, even if new information becomes available or other
events occur in the future. There may be additional risks that we
do not currently view as material or that are not presently known.
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