The price of Youbet.com stock dropped sharply in heavy trading Wednesday after the company announced it was offering 3.5 million shares on the Nasdaq National Market at $14 a share. The stock had closed at 16 1/4 on Monday, but fell to 12 5/8 Wednesday.
The company says the majority of net proceeds from the offering will go toward marketing and brand development expenditures and for the development of international expansion. The balance of the proceeds will be used for general corporate purposes, including working capital.
Youbet.com, Inc. is a Los Angeles-based interactive technology company that has created a closed-look pari-mutuel betting network. Members of the You Bet Network have 24-hour access to live racing from a choice of more than 28 racetracks across the country, commingled track pools, live audio/video, up-to-the minute track information, real-time wagering information, and value-added handicapping products.