Online software retailer Beyond.com has raised $55m through the sale of 7.25% convertible subordinated notes due December 1, 2003 in a private offering to institutional buyers. The company, which is incorporated in the state of Delaware as Software.net Corp, said the transaction is expected to close on Nov. 23 and will result in gross proceeds to the company of roughly $52.8m, excluding any proceeds from over-allotments. Beyond.com will use a substantial portion of the net proceeds for sales and marketing expenses, including paying for a portion of its obligations to its strategic marketing partners. The company also expects to continue spending substantial resources on broadcast and other marketing and sales campaigns in order to build its customer base and brand name. In October, the company reported a third-quarter loss of $8.9m on revenue up more than 100% at $9.7m. Net loss for the nine-month period was $16.7m on revenue of $23.5m, a 106% increase from last year. As of September 30, the balance sheet showed cash and equivalents of $33.2m.
