KIRKLAND, Wash.--June 11, 2001--ImageX.com, Inc., the leading e-print technology provider for online management and procurement of branded communications materials, today announced the completion of a $5 million private financing.
The company sold 4,273,504 shares of common stock at $1.17 per share, based upon the trailing 30 day average price of its shares as of June 4, 2001. In addition, the company issued to the investors seven-year warrants representing the right to purchase 769,231 additional shares of company common stock at the same per share price. The financing group consisted of existing institutional and accredited investors led by ALTA California Parters II, L.P. and ALTA Embarcadero Partners II, L.L.C.
"We are pleased that existing shareholders who understand our technology and business model have expressed their confidence in ImageX.com,'' said Rich Begert, president and CEO of ImageX.com. "We service part of an overall $306 billion annual market with cost-efficient printing services achieved through patent-pending technology. These investors have confidence we are on track to capture a significant part of that market.''
"We are currently meeting the cost cutting goals set out last quarter,'' said Robin Krueger, CFO of ImageX.com. "The extra cash will provide a hedge against a prolonged weakness in the economy over which we have no control.'' The transaction is a straight sale of equity with no restrictions on future transactions. "This structure provides significant benefits at a reasonable price based on current market conditions,'' continued Krueger. "While we believe we have sufficient cash balances to reach profitability, this financing provides increased liquidity, significant balance sheet improvement, and the ability to pursue aggressive execution of our business plan.''
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