EcommerceBytes-NewsFlash, Number 2693 - December 12, 2011     4 of 6

Overstock May Raise Money through Stock Sale

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Overstock registered with the SEC to issue up to $200 million in stock, warrants, or debt securities along with a prospectus, subject to completion. Unless otherwise indicated in a future prospectus supplement, the net proceeds would be used for general corporate purposes and working capital, including sales and marketing activities and inventory purchases.

"The timing and amount of our actual expenditures will be based on many factors, including cash flows from operations and the anticipated needs of our business," according to the prospectus. "As a result, unless otherwise indicated in any prospectus supplement, our management will have broad discretion to allocate the net proceeds of the offerings. Pending their ultimate use, we intend to invest the net proceeds in short-term, investment-grade, interest-bearing instruments."

As of December 2, 2011, there were 23,278,863 shares of Overstock.com common stock issued and outstanding and no shares of preferred stock outstanding.

This prospectus was part of a registration statement on Form S-3 that we filed with the United States Securities and Exchange Commission, or the SEC, using a "shelf" registration process. Under this shelf registration process, Overstock.com may, from time to time, sell any combination of the securities described in the prospectus in one or more offerings up to a total amount of $200,000,000.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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