eAutoclaims Reports Closing of $1.6M in New Financing

Florida-based eAutoclaims announced the closing of approximately
$1.6 million in new financing.

Of the $1.6 million, $1.35 million was a sale of equity to multiple investors at $0.28 per share and $250,000 was an 8 percent convertible debenture from one of the company’s directors. Both the equity and convertible debentures include warrant coverage. The early funding was received in a two-phased closing with the first phase closing on April 23, 2004 and the second phase closing on April 30, 2004.

The company expects to use the additional funding for working capital and to meet certain existing financial obligations. Recently, the company announced a co-marketing agreement with ADP Claims Services Group, which included stipulations of a 45-day cancellation right ending April 23, 2004. The completion of this capital raise satisfies the cancellation clause within the agreement.

Eric Seidel, president/CEO commented, “The completion of this capital raise will provide the company with working capital to meet our current needs and to expand with our new ADP co-marketing agreement.” Seidel continued, “Based on the strong market demand we experienced during this capital raise we will keep the raise open until it’s fully subscribed at $2.1 million in equity or until the company deems appropriate to close.”