Drkoop.com Inc. (Nasdaq: KOOP) edged up 3/16 to 13/16 Monday after the embattled health network said it received $27.5 million in equity financing. The company said it now has enough cash to last for 18 months.
Drkoop.com was also boosted by the naming of a new management team early last week. Richard M. Rosenblatt, who was chief executive officer of iMall before it was acquired by Excite@Home, will take over as chief executive of the Austin, Texas-based company. Edward A. Cespedes and Stephen Plutsky, both of Prime Ventures LLC, will become president and chief financial officer, respectively.
The new management team, along with Commonwealth Associates, Eco Associates, Prime Ventures, NetStar Ventures, JF Shea Ventures, and RMC Capital, provided the financing, with the management investing $6 million.
“There is a great misconception in the marketplace as to Drkoop.com’s current mission, positioning and financial status. The company’s strong brand, deep content and flexible technology allows for recurring revenue streams beyond advertising and sponsorships,” Rosenblatt said.
In early trading Tuesday, the stock was up to 1 7/32.