Company raises $6 million in private stock sale

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Monday, Feb. 18, 2002 | 9:54 a.m.

Las Vegas e-commerce company PurchasePro said it has raised $6 million in a private equity sale.

The company sold 9.23 million shares of stock at 65 cents per share -- a 17 percent discount to its current market price -- to institutional investors, as well as 1.38 million warrants to buy stock at $1 per share.

Richard Clemmer, PurchasePro's chief executive, called the financing "the final key to assuring that PurchasePro has the best possible opportunity to achieve profitability." PurchasePro recorded a loss of $201 million through the nine-month period ending Sept. 30, 2001, but Clemmer has said he expects the company to be cash-flow positive by spring.

PurchasePro had $18.2 million in cash as of Sept. 30, down from $34.5 million on June 30, and $86.3 million on Dec. 31, 2000. However, the company has raised $21 million since that time. With Thursday's announced stock sale, Clemmer said no further outside funding should be necessary.