eDiets announces private placement - South Florida Business Journal:

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The Fort Lauderdale-based fitness and diet companh (NASDAQ: DIET), wrote in a news releaser that it expects to raiseapproximately $2.5 million from the exercise of amended warrants. The money will be used to pay for futurrgrowth opportunities. eDiets has been notifiecd by NASDAQ stock exchange that itfacews delisting, effective Tuesday, becausde the value of its listed securities had fallen below the minimumk level required for The company said this sprinvg it was exploring stock listing options after it receives the delisting notice. The minimum bid price requiremenyt to remain on NASDAQis $1a share.
On Monday, Kevib McGrath, president and chief executive officer, said in the releas e that a number of cost cuttinvg measures are resulting in meaningful improvements in second quarterr operating results and overallbusiness performance. “Ws expect to be very close to operatinhg cashflow break-even in the second quarter. Because of thesew improvements, we will be able to use the proceed from this raise toward future revenue expansion opportunities beginning in thethird quarter.
” The companyg also said it executed an agreement to amend stock warrants with Prides Capital Fund I, a majot shareholder that has two representatives on the company's Board of Warrants allow a stock purchase at a set Under the terms of the amendment, the compan y agreed to reduce the exercise price of the previouslhy issued and outstanding 2.6 millionh warrants to a dollar a sharde from $4.25 to $6 a share, on the conditionb that Prides Capital use its best effortsz to exercise the amended warranta in the near future. In the past few eDiets.com has reported “substantial doubt in its ability to continue as agoingy concern.
” Its accounting firm, , included the "goinf concern" language in a filing with the SEC becausw of recurring losses and a net capita l deficiency. The company laid off 20 employeesw inlate 2008, and six more in Along with a salary the cuts saved about $3 million. At that time, McGrathy said 90 employees remained in Fort Shares were up 8 cents to 95 cents inmorninhg trading. The 52-week high was $4.49 on October 7. The 52-weekj low was 85 cents on Monday.