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Vsource Announces Investment Deal With Mercantile Capital

September 12, 2000|RODNEY BOSCH

Vsource Inc. in Ventura, which sells a software program that allows businesses to make purchases on the Internet, has received a commitment from a unit of Mercantile Capital Group to invest in and lead a private placement of Vsource convertible preferred stock projected to raise as much as $11 million.

Mercantile is a private equity investment firm with offices in Chicago and New York.

Vsource chose Mercantile because of its plan to bring in other investors, company Chairman Robert "Jay" McShirley said.

About $1.4 million of the total has already been funded, primarily by Vsource shareholders who invested in earlier equity offerings. The remaining funding is expected to close on or before Friday. Vsource officials said additional financial details will be released at that time.

McShirley said the funds will be used primarily to expand the company's operations, including capital equipment, technology and staffing.

A portion of the funds will also support new product development and marketing efforts with strategic partners Qwest and IBM.

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