In an effort to entice customers to become investors, Iggys House and BuySide Realty sent out an unsolicited email blast to 30,000 individuals this week, who had registered on their sites to either look at homes or sign up for their free listing service.
Dear Future Investor,
As you may know, Iggys House, Inc. is in the process of going public. Iggys House is the parent company of BuySide Realty. Some of our customers have expressed an interest in investing in our initial public offering.
We started our “road show” for the offering, and expect to continue it over the next few weeks. We have created an online version of the road show presentation. Here is the link:
The following is a summary of our proposed public offering. You should carefully read and consider the information contained in our preliminary prospectus for the offering before making an investment decision.
We have filed a registration statement with the Securities and Exchange Commission in connection with an initial public offering of 1,400,000 units, with each unit consisting of one share of our common stock, and one Class A warrant and one Class B warrant.
The initial public offering price of the units is $6.00 per unit.
Each Class A warrant entitles its holder to purchase one share of our common stock at an exercise price of $7.50 (125% of the initial public offering price) and is exercisable for 12 months following the closing of the offering. Each Class B warrant entitles its holder to purchase one share of our common stock at an exercise price of $9.00 (150% of the initial public offering price) and is exercisable for 36 months following the closing of the offering.
We have applied to have our units, shares of common stock and Class A and Class B warrants listed on the NASDAQ Capital Market under the ticker symbols “IGGYU,” “IGGY,” “IGGYA,” and “IGGYB,” respectively.
Our initial public offering will be undertaken pursuant to a firm commitment underwriting. The managing underwriters are Northland Securities, Inc. and Bathgate Capital Partners LLC.
How to Invest
If you wish to learn more about how to invest in our initial public offering, please contact us at IPO@IggysHouse.com, and we will direct you to one of our designated underwriter representatives.
Joseph J. Fox
Chief Executive Officer
Iggys House, Inc.
The Retail Road Show is about a 20 minute advertisement for their business, with all the bad, scary stuff left out. Some not-to-miss items on the prospectus: Page 7 financials elaborate the real estate sales income of 570K v.s. company losses of $5 million dollars, and you’ll enjoy page 62 where CEO Joseph Fox explains why he paid himself and his brother a $100K bonus in January, 2007.
The company said it intends to use the proceeds of the IPO for general corporate purposes and to repay its $1 million bridge note and any outstanding debt. I suppose this will also get Avi Fox off the hook for that $1.2M line of credit he guaranteed with Cole Taylor Bank.
Though they apparently have a lock-up agreement of 360 days, I imagine the founding team already has an exit strategy in place to liquidate their portion of the stake in the firm as soon as legally possible to get back some of their dough they’ve sunk into this losing proposition.
Start-up Web brokerage plans IPO in tough housing market, Chicago Real Estate Daily