NEW YORK -- Online off-pricer Bluefly Inc. has gotten another boost from George Soros.A group led by the financier agreed on May 24 to purchase 1.2 million of the firm's common stock as well as warrants for $1.9 million.According to a filing with the Securities and Exchange Commission Friday, the group can exercise warrants to buy 297,000 shares for $37,000. The warrants are exercisable at $1.88 a share.Soros now holds 19.2 million shares of the company's common stock, giving him a 67.2 percent stake.In an April 3 filing, the group indicated it held 17.7 million shares, or a 78.2 percent stake.Shares of the firm, based here, jumped 29 cents, or 20 percent, to close at $1.74 on the Nasdaq Friday. Over the last 52 weeks, Bluefly's stock has traded as high as $2.65 and as low as 51 cents.In the first quarter ended March 31, the firm boosted sales and cut costs, but came away with losses of $1.7 million, or 18 cents a diluted share. Still, the results were a marked improvement over year-ago losses of $18.1 million, or $3.57. Before accounting for all common stock the net loss was $1.1 million compared with $17 million in the year-ago quarter. Sales for the quarter jumped 64.6 percent to $7.7 million.During the period Bluefly also entered into a standby commitment agreement whereby its largest investor, Soros Private Equity Partners, agreed to come up with an additional $4 million in capital this year if needed. In April 2001, the firm cemented a deal with Soros that raised approximately $10 million through the issuance of common stock and converted about $31 million of its debt and redeemable preferred equity into permanent equity."

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus