uBid / Cape Coastal Trading Corporation

uBid, Inc., one of the leading online auction companies in the U.S., announced today that it has merged with a subsidiary of Cape Coastal Trading Corporation, whose only business following the merger will be the execution of uBid's business plan under the uBid name.

Concurrent with the merger, the combined company completed a $45 million private placement involving the issuance of 10,000,000 shares of Cape Coastal Trading Corporation common stock to a group of institutional and accredited investors at $4.50 per share. The Company also issued to the investors warrants to purchase an additional 2,500,000 shares of Cape Coastal Trading Corporation common stock exercisable at $5.85 per share. The net proceeds from the financing of approximately $40 million will be used for the retirement of all debt and for general working capital purposes.