June 19, 2000 5:30 PM PDT
MicroStrategy shares perk up following cash infusion
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MicroStrategy falls on earnings cutMarch 20, 2000
The company said the cash infusion comes in the form of a convertible stock offering. In this instance, MicroStrategy issued investors shares of its preferred stock with a 7 percent dividend yield. Those investors can later convert the preferred shares into shares of common stock.
Vienna, Va.-based MicroStrategy has been trying to raise more cash for months. The company withdrew a proposed public stock offering in March that was expected to garner $630 million.
The withdrawal of the public offering came on the heels of an announcement in March that MicroStrategy would restate its earnings to comply with new accounting methods required by the Securities and Exchange Commission.
MicroStrategy shares gained $3.88 today to close at $42.44. The company's shares are down more than 87 percent since reaching a 52-week high of $333 in early March.