eMerge Interactive Inc., Sebastian, Fla., has reached an agreement for the private placement of common stock and warrants with institutional investors to raise $4,060,000 in gross proceeds. This new placement is in addition to the $4.0 million private placement closed in December 2004. As part of the new transaction, eMerge will sell 2,900,000 common shares at a price of $1.40 per share and issue 5-year warrants to purchase an additional 435,000 common shares at an exercise price of $1.75 per share. The transaction is expected to close in the next 15 days and is subject to customary closing conditions.

"We are pleased that we are able to take advantage of this opportunity to increase our working capital and strengthen our balance sheet as we implement our 2005 business plan," stated David C. Warren, eMerge's president and chief executive officer. Warren added, "As we have stated before, regulatory and commercial events are creating opportunities for our food safety and traceability products. The U.S. beef industry is currently being pressured by significant economic drivers, and these proceeds will provide us with flexibility to take advantage of opportunities as they develop."

Source: PR Newswire