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Critical Path Raises $15 Million Stake
2004-01-20

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SAN FRANCISCO -- Digital services provider Critical Path said today it has secured $15 million in new private financing through the sale of convertible notes, about a month after its accounting firm questioned the company's viability.

The announcement did not identify the new investors directly, except to say they are affiliates of Apex Capital, LLC, which invested $11.25 million, and Passport Capital, LLC, which invested $3.75 million. This latest round of financing is separate from the $43 million in investments and debt conversion the company announced in November 2003.

The company will ask its shareholders sometime in the first quarter of 2004 to approve the deal, in which the financing, in the form of 10-percent senior secured notes, would convert into about 10 million shares of Series E preferred stock.

"These new investments are very significant for the company and will substantially strengthen our balance sheet," Critical Path chairman and CEO William McGlashan, Jr., said. "The going-concern qualification issued by our external accountants in December 2003 was predicated on the company's need to raise additional capital in the first quarter of 2004."

For more information about Critical Path, a provider of digital communications software and services, visit the company Web Site.

For past news coverage of Critical Path, visit the List-News archives.