Enable Holdings, Inc. Closes Private Placement of $4.25 Million, Completing the Final Component of Its Comprehensive Restructuri
February 24 2010 - 3:33PM
PR Newswire (US)
CHICAGO, Feb. 24 /PRNewswire-FirstCall/ -- Enable Holdings, Inc
(OTC Bulletin Board: ENAB), (the "Company"), one of the leading
asset recovery solution providers for products of the world's most
trusted brands, with operating subsidiaries uBid, Inc.,
Red.Tag.com, RedTagLive!, Dibu Trading Corporation and Commerce
Innovations, announced today that it completed a private placement
of a $4,250,000 offering (the "Offering") of Series 1 Preferred
Shares (the "Preferred Shares") funded by certain accredited and
strategic investors, including its executive officers, directors
and business associates (the "Investors"). Jesup & Lamont
Securities Corp. acted as exclusive placement agent for this
transaction. The Company will file a form 8-K with the SEC
disclosing the terms of the private placement. In support of the
restructuring, secured creditors agreed to reduce all or a portion
of their outstanding balances and to return all warrants previously
issued in exchange for Preferred Shares. As of December 31, 2009,
the Company substantially completed recasting its operations to
better fit its operating model by dramatically reducing fixed
overhead through a number of cost cutting programs including
relocating its offices and consolidating into one location. The
Company has seen fixed costs decrease from $1,200,000 a month to
$300,000 over the past six months. As a result the Company is a
much leaner organization well positioned to capitalize on its
strengths. Patrick Neville, recently appointed Chief Executive
Officer, comments: "I am astonished at the amount of work that has
been accomplished by the Company in a relative short period of time
through very difficult economic and credit conditions. Now with all
of the components of the restructuring behind us, I see a great
opportunity to exploit our business model through our vastly
improved balance sheet. Thank you to all of our vendors and
customers who have supported us and will continue to be the
beneficiary of our focused efforts to meet their needs." Steve
Sjoblad, Chairman of the Board stated, "the restructuring was not
painless or easy to accomplish. Many sacrifices and monetary
concessions have been made by all. The Company is in effect
relaunching itself under a new structure with a business model that
was developed over the past two years that has not really gotten an
opportunity to be fully implemented because of the lack of capital.
I believe that the Company is poised to create value for all
stakeholders." Mr Sjoblad further commented on the recently
announced addition of two Board Members, Mr. Jeff Parell and Mr.
Don Miller are both investors in the Company and provide extensive
experience in turnaround situations. "The addition of these two new
board members strengthens our board and the resources available to
support the new business model." About Enable Holdings, Inc and its
Subsidiaries The Company provides multi-channel asset recovery
solutions that includes online auction platform uBid.com,
fixed-price online commerce solution RedTag.com, offline excess
inventory solution RedTag Live! business-to-business solution Dibu
Trading Corporation, and private auction software solution Commerce
Innovations. Over the past twelve years the Company has developed a
customer base of over 5.8 million registered users and a network of
over 7,000 manufacturers, retailers and distributors that make up
the various commerce solutions that the Company offers. The Company
has helped thousands of businesses and consumers facilitate the
sale of over $2 billion of inventory over the past twelve years and
has saved consumers hundreds of millions of dollars in the process.
SEC Filings and Forward-Looking Statements Additional information
about the Company is available in the Company's annual report in
Form 10-K and latest quarterly financial report in Form 10-Q, filed
with the Securities and Exchange Commission. Certain statements
made in this release are forward-looking statements.
Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the business of the Company and markets in which the Company
operates. These statements are not guarantees of future performance
and involve risks, uncertainties and assumptions, which are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or implied by these
forward-looking statements. Factors which may affect the forward
looking statements identified above and the Company's business,
financial condition and operating results generally include the
effects of adverse changes in the economy, reductions in consumer
spending, declines in the financial markets and the industries in
which the Company and its partners operate, adverse changes
affecting the Internet and e-commerce, the ability of the Company
to develop and maintain relationships with strategic partners and
suppliers and the timing of its establishment or extension of its
relationships with strategic partners, the ability of the Company
to timely and successfully develop, maintain and protect its
technology and product and service offerings and execute
operationally, the ability of the Company to attract and retain
qualified personnel, the ability of the Company to successfully
integrate its acquisitions of other businesses , if any, and the
performance of acquired businesses. The Company expressly disclaims
any intent or obligation to update these forward-looking
statements, except as otherwise specifically stated by the Company.
DATASOURCE: Enable Holdings, Inc. CONTACT: Mike Martinez of Enable
Holdings, Inc., +1-773-272-5000 Web Site:
http://www.enableholdings.com/
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