Drkoop.com, Inc. (Nasdaq: KOOP) tacked on 1/32 to 23/32 Tuesday after the struggling health care Web company said PricewaterhouseCoopers will stay on as its independent auditor.
PricewaterhouseCoopers had planned to quit its association with the company after the completion of a US$27.5 million private placement. "Following discussions with the company's new management team," however, the auditors agreed to stay on through the third quarter and beyond.
Also Tuesday, Drkoop.com filed with U.S. regulators for the resale of 117.66 million common shares held by some of its trade creditors and former business partners. The company will not receive any proceeds from the sales.
Drkoop.com received the $27.5 million in financing last August from members of its new management team, along with an investor group consisting of Commonwealth Associates, Eco Associates, Prime Ventures, NetStar Ventures, JF Shea Ventures and RMC Capital. The company said the agreement gave it enough cash to continue operations for 18 months.
Richard M. Rosenblatt took over as chief executive, and Edward A. Cespedes and Stephen Plutsky, both of Prime Ventures LLC, became president and chief financial officer.
Earlier this month, Drkoop.com reported a third-quarter loss of $57.9 million, or $1.60 per share, compared with a loss of $20.6 million, or 68 cents, in the year-earlier quarter. Charges of $48.0 million from the private placement hurt results in the latest quarter. Revenue, however, was also lower than a year earlier, slipping to $2 million from $2.9 million.
Rosenblatt said the quarter was a "transitional" one, with the new management installed a little more than a month before quarter's end. "Our next step is to continue winning customers, positioning the company for revenue growth and profitability," Rosenblatt added.
Drkoop.com shares are down from a 52-week high of 19 7/8.
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