The Los Angeles, California-based company has entered into an agreement with a number of institutional investors regarding a private placement of 7,100,000 shares of Common Stock at a price of $7.35 per share. This translates to $52.1 million, and the private placement is expected to close on or about January 24.
The proceeds will be used for the future development of the Napster business, including the upcoming launch of the company’s Napster To Go portable subscription service, and potential acquisitions.
Roxio Inc, the owner of the Napster brand, received $22 million in private placement of 5.5 million shares of common stock in January 2004.
