Bluefly.com Draws Additional Capital From Soros Private Equity Partners.Business Editors NEW YORK--(BUSINESS WIRE)--July 6, 2000 Bluefly, Inc. (Nasdaq SmallCap:BFLY BFLY Bluefly Inc. (stock symbol) ), a leading online outlet for designer fashions and home furnishings (www.bluefly.com), announced today that it raised $3 million last week as part of the March 2000 financing commitment provided by affiliates of Soros Private Equity Partners. Pursuant to the commitment, the Soros organization has agreed to provide Bluefly with up to $15 million of financing at any time during 2000 on terms reflecting market rates at the time that Bluefly draws down on such financing. Including this latest $3 million, Bluefly has drawn down $9 million from the $15 million commitment, leaving a total of $6 million available to the Company. In exchange for this $3 million, Bluefly issued promissory notes that mature in January 2002 and bear interest at the rate of 8% per annum Per annum Yearly. , and warrants to purchase 50,000 shares of its common stock, exercisable at any time during the next 5 years at a price per share that will equal the value of its common stock as determined in the Company's next round of financing. Under the terms of the promissory notes, the entire principal amount and all accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. automatically convert into the securities issued by the Company in its next round of financing, subject to certain conditions. "Having the support of the Soros organization has been very important to us, especially at a time when the capital markets are not treating e-tailers very kindly," said Ken Seiff, Chief Executive Officer of Bluefly, Inc. "Based on current plans and assumptions, this $3 million tranche and the $6 million remaining from the Soros commitment should be enough to fund Bluefly's cash requirements through the end of 2000," Seiff added. Bluefly is a Nasdaq SmallCap public company 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. Distinguishing itself with discounts of up to 75%, products from more than 300 designers and a 90-day money back guarantee, Bluefly.com aims to be the world's first full service outlet store An outlet store or factory outlet is a retail store in which manufacturers sell their stock directly to the public through their own branded stores. The stores can be can be brick and mortar or online. for designer fashions. Its innovative MyCatalog feature is designed to eliminate the "hit-or-miss" aspect of off-price shopping by allowing shoppers to see only those products that are available for sale and match their interests. 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, Lycos, 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, Tripod, Women.com and Yahoo! For more information, visit www.bluefly.com. 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-QSB, and 10-KSB. These risks and uncertainties include, but are not limited to, the following: the Company's limited working capital, need for additional capital and potential inability to raise such capital; the competitive nature of the business and the potential for competitors with greater resources to enter such business; risks of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. for sale of unauthentic or damaged goods DAMAGED GOODS. In the language of the customs, are goods subject to duties, which have received some injury either in the voyage home, or while bonded in warehouses. See Abatement, merc. law. and litigation risks related to sales in foreign countries; consumer acceptance of the Internet as a medium for purchasing apparel; recent losses and anticipated future losses; the startup nature of the Internet business; the capital intensive nature of such business (taking into account the need for advertising to promote such business); the dependence on third parties and certain relationships for certain services; the successful hiring and retaining of personnel; the dependence on continued growth of online commerce; rapid technological change; online commerce security risks; governmental regulation and legal uncertainties; management of potential growth; and unexpected changes in fashion trends. |
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