PlanetRx.com (Nasdaq: PLRX) tacked on 27/32 to close at 1 3/4 Tuesday after the online health and pharmacy company announced a financing agreement.
Alpha Venture Capital, Inc. signed a definitive agreement to provide up to $50 million in equity financing “with terms which we believe are favorable,” said Steve Valenzuela, chief financial officer of the San Francisco, California-based PlanetRx.com. The company said it plans to use the money for “working capital and other general corporate needs.”
The company can use the line of credit based on a formula related to the price and trading volume of its shares. PlanetRx said it will issue common shares at a discount of no more than 9 percent off the average closing market price as the line is tapped. The company may also issue common stock warrants priced at 120 percent of the market price of the stock.
The agreement is good for one year, with an automatic one-year extension if at least 20 percent, or $10 million, is drawn in the first year.
After the close of trading, PlanetRx reported a second-quarter pro forma loss of $26.4 million, or 55 cents per share, before items, on revenue of $9.4 million. After charges, the company lost $43.9 million, or 92 cents per share.
The company said it increased membership by 35 percent over the first quarter, to 1.2 million, and added about 135,000 new customers, for a total of about 535,000.