Bluefly Regains Compliance With NASDAQ Listing Requirement; Conversion of $20 Million of Debt into Equity Cleared The Way.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 14, 2001 Bluefly, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on SmallCap: BFLY BFLY Bluefly Inc. (stock symbol) ), a leading Internet retailer of designer fashions at outlet store prices (www.bluefly.com), announced today that the NASDAQ Staff has determined that Bluefly has regained compliance with NASDAQ's net tangible assets Net Tangible Assets Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents and trademarks, less all liabilities and the par value of preferred stock. Also known as "net asset value" or "book value". listing requirement, and has, therefore, cancelled the previously scheduled hearing on the matter. The NASDAQ staff determination was a direct result of the company's closing of the second phase of its investment agreement with affiliates of Soros Private Equity Partners, which was announced on February 7, 2001. At that closing, the company converted $20 million of debt into preferred equity at a price of $2.34 per share. The elimination of the NASDAQ listing issue also cleared the way for the company to list on NASDAQ the Rights To Purchase Shares of Common Stock (NASDAQ SmallCap: BFLYR) that were issued on February 7, 2001 as part of the final phase of its equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . This rights offering, which is set to expire on March 26, 2001, is expected to raise between $10 million and $20 million in new capital for the company at a price of $2.34 per share of common stock. "With an improved balance sheet and the NASDAQ issue behind us, we are in a better position to execute on our growth strategy," said Ken Seiff, Chief Executive Officer of Bluefly, Inc. "Offering customers the most convenient way to buy high-end designer fashions at discounted prices while delivering exceptional customer service is what Bluefly is all about," Seiff added. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in the heart of the fashion district, Bluefly is a leading Internet retailer of designer apparel, fashion accessories and home products at outlet store prices. Bluefly sells over 350 brands of designer apparel and home accessories at 25% to 75% off of retail prices through its Web Site, Bluefly.com. The online merchant has established strategic alliances with many of the most visited Web Sites and portals including AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Excite, MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). , Netcenter, Women.com and Yahoo!. This press release may include statements that constitute "forward-looking" statements, usually containing the words "believe", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by the company with the Securities and Exchange Commission, including Forms 8-A, 8-K, 10-Q, and 10-K. These risks and uncertainties include, but are not limited to: the potential failure by the company or the affiliates of Soros Private Equity Partners to satisfy all of the closing conditions contained in the Investment Agreement among the company and affiliates of Soros Private Equity Partners and our ability to sustain compliance with NASDAQ requirements. |
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