Under the terms of the financing deal, Loudeye agreed to sell 16.8 million shares of common stock together with warrants to purchase an aggregate of approximately 5.0 million shares of common stock, to certain institutional investors.
The net proceeds of the offering will be used for working capital and any other general corporate purposes.
Back in June 2004, Seattle, Washington-based Loudeye paid $38 million for On Demand Distribution Ltd, the largest digital music provider in Europe.
Then, in December, the company announced that it had signed a deal with MTV Networks to launch online music stores in Italy and Spain, where users can pay to legally download songs. The site will be powered by Loudeye’s OD2 services-technology acquired through the On Demand Distribution Ltd acquisition.
Loudeye currently runs MTV’s online music stores in the UK, France, Germany, Italy and the Netherlands.
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