eDiets.com(R) Announces Financing and Warrant Amendment
29 Juin 2009 - 10:05PM
PR Newswire (US)
- Company expects meaningful improvement in second quarter of 2009
operating cash flow results - FORT LAUDERDALE, Fla., June 29
/PRNewswire-FirstCall/ -- eDiets.com, Inc. (NASDAQ:DIET), a leading
provider of convenient at-home diet, fitness and healthy lifestyle
solutions, today announced that it has entered into a $500,000
Private Placement with certain members of management and the Board
of Directors. In addition, the Company expects to raise
approximately $2.5 million from the exercise of amended warrants.
The Company will use the proceeds to fund future growth
opportunities. Kevin McGrath, President and Chief Executive
Officer, commented, "During the first quarter of 2009, we
implemented a number of strategic changes and cost cutting measures
that are resulting in meaningful improvements in our second quarter
operating results and overall business performance. In particular,
as a result of the actions we've taken, we expect to be very close
to operating cash flow breakeven in the second quarter. Because of
these improvements, we will be able to use the proceeds from this
raise toward future revenue expansion opportunities beginning in
the third quarter. I am confident that our strategic plan and
promotional initiatives have positioned our business for long-term
profitable growth." The Company also executed on an Agreement to
Amend Warrants ("Warrant Amendment") with Prides Capital Fund I,
L.P. ("Prides Capital"), a major shareholder with two
representatives on the Company's Board of Directors. Under the
terms of the Warrant Amendment, the Company agreed to reduce the
exercise price of the previously issued and outstanding 2.6 million
warrants to $1.00 per share from the range of $4.25 to $6.00 per
share on the condition that it is Prides Capital's intention to use
its best efforts to exercise the amended warrants in the near
future. About eDiets eDiets.com, Inc. is a leading provider of
personalized nutrition, fitness and weight-loss programs. eDiets
currently features its award-winning, fresh-prepared diet meal
delivery service as one of the more than 20 popular diet plans sold
directly to members on its flagship site, http://www.ediets.com/.
The company also provides a broad range of customized wellness and
weight management solutions for Fortune 500 clients. eDiets.com's
unique infrastructure offers businesses, as well as individuals, an
end-to-end solution strategically tailored to meet its customers'
specific goals of achieving a healthy lifestyle. For more
information, please call 310-954-1105 or visit
http://www.ediets.com/. Safe Harbor Statement Statements which are
not historical in nature are forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties which could cause the actual results, performance or
achievements to be materially different from those which may be
expressed or implied by such statements. These risks and
uncertainties include, among others, that we will not be able to
obtain sufficient and/or acceptable outside financing (when and if
required); changes in general economic and business conditions;
changes in product acceptance by consumers; a decline in the
effectiveness of sales and marketing efforts; loss of market share
and pressure on prices resulting from competition; significant
investments in our technology platform, marketing plans, and
product development to remain competitive with other online
providers of healthy living and weight loss plans, many of which
may be found to offer superior and more varied features than our
plans and may also be offered for free; volatility in the
advertising markets; any delay, disruption, or suspension of our
supply of prepared meals from our vendor; changes in consumer
preferences and discretionary spending; product liability and other
risks from the sale of ingested products; regulatory actions
affecting our marketing activities; and the outcome of litigation
pending against us. For additional information regarding these and
other risks and uncertainties associated with eDiets.com's
business, reference is made to our Annual Report on Form 10-K for
the year ended December 31, 2008, and other reports filed from time
to time with the Securities and Exchange Commission. All
forward-looking statements are current only as of the date on which
such statements are made. We do not undertake any obligation to
publicly update any forward-looking statements. Investor Relations
Contact: John Mills ICR, Inc. 310.954.1105 DATASOURCE: eDiets.com,
Inc. CONTACT: John Mills of ICR, Inc., +1-310-954-1105, , for
eDiets.com, Inc. Web Site: http://www.ediets.com/
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