ZipRealty sets stage to raise up to $50 million by issuing new stock, warrants

share this

Tech-based brokerage ZipRealty Inc. has filed a shelf registration statement with regulators that would allow it to issue up to $50 million in stock and warrants. The Emeryville, Calif.-based company expects to use the net proceeds from the sale “for general corporate purposes, including, but not limited to, acquisitions, repayment or refinancing of borrowings, working capital or capital expenditures.”

Selling shareholder Benchmark Capital may also sell up to 4.2 million shares of common stock in a secondary offering valued at about $25.3 million based on the average price per share of $6.02 on Jan. 14. ZipRealty would not receive any of the proceeds from those sales, which would be made on behalf of investors who purchased shares in private placements or through warrants granted before ZipRealty’s 2004 initial public offering through Benchmark Capital Partners IV LP.

In reporting preliminary 2013 results Friday, ZipRealty said fourth-quarter revenue was down 4 percent from a year ago, to $17 million, “reflecting a sharper-than-expected slowdown in real estate sales in ZipRealty markets.”┬áNet revenue for the year was up 3 percent from 2012, to approximately $75.9 million, and the company expects to break even on an adjusted earnings basis (earnings before interest, taxes, depreciation and amortization). Source: sec.gov.

Article continues below

More from

Recent Stories Email Send Us a Tip

Comments