Florida-based eAutoclaims announced the final closing of approximately $2.5 million in new financing.
Of the $2.5 million, $2.25 million was a sale of equity to multiple investors at $0.28 per share and $250,000 was an 8% convertible debenture from one of the company’s directors. Both the equity and convertible debentures include warrant coverage. This represents additional capital of $900,000 from the company’s previous announcement on May 5, 2004. Noble International Investments acted as placement agent on a material portion of this raise and will continue to advise the company as its investment banker.
The company has deployed the capital to fulfill certain financial obligations, has begun investing in the eAutoclaims’ Special Markets Division, and has expanded its efforts in the company’s direct marketing channel. The company’s Special Markets Division supports the recently announced co- marketing agreement with ADP Claims Services Group.
Eric Seidel, president/CEO, commented, “We are very pleased that we experienced such a strong response from the equity markets. Unfortunately, we had to turn away some investors from participating in this round of financing. Our goal was to obtain the appropriate amount of capital that would allow us to expand for our new agreement with ADP Claims Services and to support the significant reduction in revenues coming from our largest customer this past quarter. With this financing in place we are ready to maximize the business opportunity of this new agreement and our shareholders’ return on their investment.” About eAutoclaims:
eAutoclaims’ clients are insurance companies, fleet management companies and insurance services companies.
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