Burst.com Secures Funding to Pursue Strategic Alliances
One week ago it looked as through Burst.com was clinging to life by a thread, but today the broadband technology developer announced that it has secured $650,000 in funding. The company states that this funding will sustain its operations through mid-first quarter, 2001.
Burst recently laid off 80 percent of its staff and closed 6 regional offices last Monday in an effort to reduce its burn rate to $500,000 per month.
The debt financing is convertible to preferred equity at $5.00 per share, which in turn is convertible share-for-share into common stock, according to Burst.com CFO, John Lukrich.
Burst announced last week that it was working with Equity Funding Group, LLC and Reedland Capital Partners, a Division of Financial West Group, on near-term financing projects. Burst also engaged the investment banking firm of Punk, Ziegel & Company to explore additional long-term financing options and provide strategic guidance.
The company was unable to be reached for comment regarding the funding.
A couple of hours before the close of the Nasdaq on Monday, Burst's stock was up 5/32 to 7/16. Unfortunately, Burst's stock is still lingering well below the dollar mark.