Struggling health Web site Drkoop.com (Nasdaq: KOOP) dropped 17/64 to 1 5/64 Tuesday despite the company’s announcement that it had received $20 million in financing.
The equity financing will come from an investment group that includes Cramer-Rosenthal-McGlynn Inc., JF Shea Ventures, Prime Ventures and RMC Capital. A new management team will also take over Drkoop.com. The team, which put up $3.5 million of the financing, currently leads Prime Ventures.
The health resource also will reconfigure its board of directors.
Also on Tuesday, Drkoop.com reported stockholder losses of $40.6 million — $1.18 per share — for the second quarter ended June 30th. The report added that ongoing cost-cutting measures are expected to reduce the company’s operating expenses from $12.8 million in the second quarter to $6.5 million in the third quarter.