N2K Inc, the New York-based online music vendor has filed with the Securities and Exchange Commission to sell 3.8 million shares of common stock in a secondary offering. Of that total 2 million will be offered by the company and 1.8 million by certain shareholders. N2K will raise roughly $44-$47m, after expenses based on current share prices. It plans to use the proceeds from its end of the offering to fund advertising, expand its infrastructure and for working capital. The company has only been public since October, when it sold 3.3 million shares at $19 a piece (CI No 3,271). The shares closed at $22.50 on Thursday, down $1.25. Last month N2K reported a fourth-quarter net loss of $13.2m on revenue of $4.8m a year ago. Its net loss for the year was $28.7m on revenue that rose to $11.3m from $1.7m.
