Overstock raises $36 million in stock offering; files complaint under new Spyware law
Staff Staff -- Furniture Today, May 19, 2004
SALT LAKE CITY — Overstock.com, Inc. today closed its auction-based underwritten public offering of 1.2 million shares of common stock at a price of $30.50 per share.
The offering was made under the company's existing shelf-registration statement, and resulted in gross proceeds of approximately $36.6 million, and net proceeds, before certain expenses of the offering, of approximately $35.3 million, stated Overstock. The underwriters have an option to purchase up to an additional 100,000 shares to cover over-allotments, if any.
Overstock.com said it anticipates using the net proceeds of the offering primarily for general corporate purposes and working capital requirements, including sales and marketing activities and inventory purchases.
In other Overstock news, the company stated it will use the recently enacted Utah Spyware Control Act, which went into effect May 3, to file a complaint against Massachusetts-based online retailer SmartBargains, Inc. in the Third District Court in Salt Lake City.
Spyware is software that is surreptitiously installed on a personal computer for the purpose of collecting certain information from that computer and enabling marketers to target the user with pop-up ads while browsing the Internet.
Since the Utah Spyware Control Act, Overstock.com stated it has observed SmartBargains using spyware to display pop-up ads over the Overstock.com Web site, and that this has been occurring within the State of Utah in violation of the new Utah law. Overstock.com seeks injunctive relief, damages, attorney's fees and other costs arising from SmartBargains' actions.
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