Key Developments: Vitacost.com Inc (VITC.OQ)
8.97USD
11:19am EDT
$-0.03 (-0.33%)
$9.00
$8.95
$8.97
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1,005
18,816
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Latest Key Developments (Source: Significant Developments)
Vitacost.com Inc Announces Divestiture of Manufacturing Operations
Vitacost.com Inc announced that effective September 1, 2012, the Company has entered into an agreement to exit its manufacturing operations and lease its manufacturing facilities to a third party provider. Approximately 40% of the Company's products are supplied by contract manufacturers, and this transaction outsources the remaining portion. Full Article
Vitacost.com, Inc. Announces Dismissal Of Class Action Lawsuit
Vitacost.com, Inc. announced that on June 25, 2012, the United States District Court for the Southern District of Florida has entered a final judgment in favor of Vitacost.com, Inc. in the punitive class action complaint captioned Miyahira v. Vitacost.com, Inc., Ira P. Kerker, Richard P. Smith, Stewart Gitler, Allen S. Josephs, David N. Ilfeld, Lawrence A. Pabst, Eran Ezra, and Robert G. Trapp, Case 9:10-cv-80644-KLR. Plaintiffs have 30 days to file an appeal. Full Article
Vitacost.com, Inc. Announces Private Placement
Vitacost.com, Inc. announced that the Company has raised $34.8 million through a private placement offering. The offering was funded with $18.7 million from existing institutional investors and $16.1 million from JHH Capital, LLC, an entity formed by the Company’s Chief Executive Officer, Jeffrey Horowitz, for the purposes of this transaction. The Company issued an aggregate of 4,920,288 shares of Vitacost common stock at a purchase price of $7.04 per share, and warrants to purchase 1,680,601 shares of Vitacost common stock. The warrants have an exercise price of $7.04 per share and a four-year term. The proceeds from the financing will be used primarily to expand and optimize the Company’s distribution network. Of this amount, an estimated $15.0 million will be used to build and stock a third distribution center to support the Company’s high level of sales growth. Construction on the new facility is expected to commence in the second half of 2012 with completion expected in the early part of 2013. In addition, an estimated $5.0 million will be used to complete the expansion of the Company’s existing distribution center in Lexington, North Carolina and increase storage capacity at the Company’s existing west coast distribution center located in Las Vegas, Nevada. The Company intends to use the remaining proceeds for general corporate purposes. Houlihan Lokey Capital, Inc. acted as exclusive placement agent for the offering. Full Article
Vitacost.com, Inc. Names Brian D. Helman As Chief Financial Officer
Vitacost.com, Inc. announced that Brian D. Helman was named Chief Financial Officer. Mr. Helman will join the Company at the end of February and will replace Stephen E. Markert, Jr. who has been serving as the Company's Chief Financial Officer on an interim basis since October 2010. Full Article

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