KANA Stocks Rally on News of $55 Million in Financing
KANA stocks rose over 34 percent Friday from Thursday's close on news that the company had secured a combined $55 million in equity financing from venture capital firm Technology Crossover Ventures and a common stock purchase from money management firm Amerindo Investment Advisors.
Technology Crossover Ventures of Palo Alto, Calif. will purchase up to $45 million of convertible preferred stock, or approximately 1.9 million common shares, from the Menlo Park, Calif.-based e-CRM solutions provider. As part of the agreement, TCV General Partner Jay Hoag will hold a seat on the KANA board of directors.
"Our extensive due diligence verified that KANA has a very strong suite of products, deep technology and an experienced management team capable of building a very large business," said Hoag.
KANA also announced Thursday that Amerindo Investment Advisors, based in San Francisco and New York, has invested an additional $10 million of its funds in KANA's common stocks. The firm, which specializes in emerging technology and biotechnology investments, already holds KANA stock on behalf of its clients.
Despite reporting a dismal pro forma loss of ($0.23) per share for Q3 2001, KANA has consistently maintained a confident stance in its forecasts and expects to break even by the close of Q4.
Following the announcements, KANA stocks closed at $1.80 Friday, up over 34 percent from Thursday's close. "This funding is a strong signal to our customers and partners that KANA is and will remain the e-CRM market leader,'' said Chuck Bay, president and CEO of KANA.
The financing agreements are pending approval by KANA stockholders and should be finalized by mid-January, the company said.