Penny Auction Solutions, Inc. (PAS) is pleased to announce that it has signed an investment agreement with Kodiak Capital Group, LLC of New York City (Kodiak) for a $10 million equity line of credit.
PAS plans to use the funding to establish operations and begin offering services in early 2011. Their strategic approach is tailored to capitalize on the online Penny Auction entertainment-shopping arena. One key advantage is their ability to penetrate the global marketplace with the top 291 Internet domains and .mobi’s.
PAS is preparing an S-1 Registration Statement with the SEC and anticipates making an announcement of being a publicly traded company in the Fall of 2010. Once the Registration Statement is approved by the SEC, PAS will be entitled to draw funds from the equity line of credit.
President and CEO of Penny Auction Solutions, Inc., Corey Parks, states: “We are pleased to have secured the $10 million in financing from Kodiak which will enable us to become a dominant participant in the global Penny Auction marketplace. Once our registration statement is approved, PAS will have access to the funds which can be used to capture a sizable share of the largely untapped global penny auction market.”
Also, Kodiak will be issued 1,000,000 shares for taking PAS into consideration for the equity line of credit. Charles DeVerna, Kodiak Director of Business Development, stated: “We are excited to partner with PAS and provide funding for the company. The facility provides management with inexpensive and flexible access to capital when and as needed to carry out operations and fuel their rapid global expansion.”
PAS COO, Micheal Holt, added: “This agreement will provide us with the necessary funds to operate a world-class operation and offer our services on a very competitive basis. It also allows us to employ new technologies in the marketplace which will enhance our members’ experiences and set us apart from our competitors.”