SAN JOSE, Calif.-Datalink.net said it has received a $10 million investment from Brown Simpson Strategic Growth Funds. The investment was approved by Datalink’s board of directors at a price determined by its Jan. 24 closing price.
Datalink said it plans to issue 769,231 shares of series B convertible preferred stock, which are convertible one-for-one into common stock. The company also issued five-year warrants to purchase 576,923 shares of common stock at an exercise price 35-percent higher than the Jan. 24 closing price.
“We are very pleased with this investment,” said Jim Simpson, principal of Brown Simpson Asset Management. “We believe that Datalink has an opportunity to become the dominant player in providing comprehensive wireless solutions to businesses.”
Datalink said it would use the funds to support its business-to-business initiatives, including its new business unit, Net2Wireless.com.
The company also reported its net loss available to common shareholders for the quarter ended Dec. 31 was $811,944, or 23 cents per share, down from a net loss of $838,580, or 41 cents per share, during the previous year.
For the nine-month period ended Dec. 31, it reported its net loss was $2.1 million, or 68 cents per share, down from a net loss of $3.6 million, or $1.78 per share, for the first three quarters of 1998.
Datalink attributed the reduced net loss to reduced expenditures in business-to-consumer advertising and marketing.
Revenues for the final quarter also were down from $561,414 in 1998 to $326,761 in 1999, with the nine-month period seeing revenues decline from $1.6 million in 1998 to $1.1 million last year.
In other news, Datalink said it selected Reuters to provide data for a high-speed, custom-built financial application. The application is designed for a financial institution working in the global capital, derivative and foreign exchange markets. It uses the foreign exchange and fixed income data, including government treasuries.
