Additional Capital Provides Ability to Scale with Suppliers and Capitalize on Upcoming iPhone X Trade in Cycle
NEW YORK, NY / ACCESSWIRE / November 27, 2017 / uSell.com (OTCQB: USEL), a large market maker of used smartphones, announced today the closing of a $3.94 million private placement. The common stock investment was done at a fixed price of $0.50 or above the public market price. No investment banker was involved. The Company agreed to file a registration statement covering the shares.
A material portion of the financing was done by existing shareholders, including an investment of $100,000 from Chief Executive Officer Nik Raman.
Nik Raman, Chief Executive Officer, commented, "Our recent financing was strategically timed to enable us to take advantage of the upcoming iPhone X trade-in cycle. As demonstrated by our recently reported record quarterly revenue and gross merchandise volume, we have expanded relationships with both new and existing suppliers over the last year, and we believe that these relationships will continue to develop in 2018."
In concert with the financing, Brian and Scott Tepfer, two principal executive officers and shareholders, each reduced their base salaries to $250,000 per year, from over $400,000. Because of short-swing profit rules, the Tepfers were not able to purchase any shares.
"Like my investment in the Company, the Tepfers' decision to dramatically reduce their base compensation indicates their shared belief in the future of uSell and We Sell Cellular," said Raman. "Since the combination of our companies two years ago, we have transformed a significant portion of the We Sell Cellular operation through technology, and the potential of our technological vision is now plainly apparent to everyone."
About uSell.com, Inc.
uSell.com, Inc. is a large market maker of used smartphones. uSell acquires products from both individual consumers, on its website, uSell.com, and from major carriers, big box retailers, and manufacturers through its subsidiary, We Sell Cellular, LLC. The Company maximizes the value of these devices by reclassifying them, adding value to them, and moving them throughout the world to those who want them most. In order to serve its global and highly diverse customer base, uSell leverages both a traditional sales force and an online marketplace where professional buyers of used smartphones can buy inventory on-demand. Through participation on uSell's online platform and through interaction with uSell's salesforce, buyers can acquire high volumes of inventory in a cost-effective manner, while minimizing risk.
This press release includes forward-looking statements including statements regarding our future relationship with suppliers and the potential of the Company's technological vision investments in our online platform and in our warehouse and the impact expected and the expectations from the new iPhone X launch. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect," and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. The results anticipated by any or all of these forward-looking statements might not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include competition from large retail stores and wireless operators, our continued success in reducing dependence on a few suppliers, our ability to react quickly and the availability of sufficient capital when supply of smartphones increases, the expected growth and usage of our technology platform, the security of our online platform, our ability to further or maintain our relationships with large wholesalers, favorable reviews of new iPhones and other new releases and willingness of consumers to continue to trade-in their phones for expensive new phones with minor technical changes. Further information on our risk factors is contained in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2016. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
Chief Executive Officer