Vitacost.com, Inc. Announces Private Placement
BOCA RATON, Fla.--(BUSINESS WIRE)--
Vitacost.com, Inc. (NASDAQ: VITC), a leading online retailer and direct
marketer of health and wellness products, announced that the Company has
raised $34.8 million through a private placement offering. The offering
was funded with $18.7 million from existing institutional investors and
$16.1 million from JHH Capital, LLC, an entity formed by the Company's
Chief Executive Officer, Jeffrey Horowitz, for the purposes of this
transaction. The Company issued an aggregate of 4,920,288 shares of
Vitacost common stock at a purchase price of $7.04 per share, and
warrants to purchase 1,680,601 shares of Vitacost common stock. The
warrants have an exercise price of $7.04 per share and a four-year term.
The proceeds from the financing will be used primarily to expand and
optimize the Company's distribution network. Of this amount, an
estimated $15.0 million will be used to build and stock a third
distribution center to support the Company's high level of sales growth.
Construction on the new facility is expected to commence in the second
half of 2012 with completion expected in the early part of 2013. In
addition, an estimated $5.0 million will be used to complete the
expansion of the Company's existing distribution center in Lexington,
North Carolina and increase storage capacity at the Company's existing
west coast distribution center located in Las Vegas, Nevada. The Company
intends to use the remaining proceeds for general corporate purposes.
Houlihan Lokey Capital, Inc. acted as exclusive placement agent for the
"We are excited about Vitacost's future growth opportunities and remain
committed to increasing sales and profitability long-term," stated
Jeffrey Horowitz, the Company's Chief Executive Officer. "We believe
this additional capital, when coupled with our existing working capital,
will provide the financial resources necessary to expand our
distribution platform to support our next stage of growth."
About Vitacost.com, Inc.
Vitacost.com, Inc. (NASDAQ: VITC) is a leading online retailer and
direct marketer of health and wellness products, including dietary
supplements such as vitamins, minerals, herbs and other botanicals,
amino acids and metabolites, as well as cosmetics, organic body and
personal care products, pet products, sports nutrition and health foods.
Vitacost.com, Inc. sells these products directly to consumers through
its website, www.vitacost.com.
Vitacost.com, Inc. strives to offer its customers the broadest selection
of healthy living products, while providing superior customer service
and timely and accurate delivery.
Except for historical information contained herein, the statements in
this release are forward-looking and made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements made herein, which include statements
regarding the Company's future growth prospects, the Company's expected
use of the proceeds from the financing, the Company's plans to expand
and optimize its distribution network, the timing of the construction
and completion of the Company third distribution center, the Company's
expectations regarding sales growth, the Company's plans to increase
sales and profitability long-term, and the Company's future capital
requirements involve known and unknown risks and uncertainties, which
may cause the Company's actual results in current or future periods to
differ materially from those anticipated or projected herein. These
risks are more fully described in the Company's filings with the
Securities and Exchange Commission, including the Company's Form 10-K
for the fiscal year ended December 31, 2010 and in the Company's
subsequent filings with the Securities and Exchange Commission made
prior to or after the date hereof.
Senior Managing Director
Source: Vitacost.com, Inc.
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