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EBIZ CEO: "Without additional working capital the company is not viable"

Jul 12, 2001, 22:00 (21 Talkback[s])
(Other stories by Dave Shaw)

Dave Shaw, CEO of Ebiz (which owns LinuxMall.com), says that a "dramatic drop" in the company's stock prices from "intense selling pressure" and unfavorable terms extended by the company's creditors have put the company in a critical position:

"...Simply put, more working capital needs to be invested in the company immediately. Without additional working capital the company is not viable as it is currently structured.

I am working aggressively with our current investors including those who have made previous commitments to provide capital but have not provided such capital. Many of our vendors and customers have been very understanding and willing to work with us through the delays in filling orders that these circumstances have caused. To all of these groups, we owe a great deal of thanks for their patience.

I hope to have a solution to this problem in the next seven to ten days. As soon as we are able to resolve this situation I will post another update to this site."

Complete Letter

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