PhotoWorks Inc. (OTC BB: FOTO), a Seattle-based provider of online photography services, has negotiated a $6.5 million recap round that includes financing from Sunra Capital Holdings, Orca Bay Partners and Madrona Venture Group. The deal still must be approved by shareholders.
Not sure the specifics of the recap but this may be a good PIPE investment for the VC investors (Madrona was an early investor in Amazon.com.)
PhotoWorks currently trades at 4.72M market cap and had $22M in revs last year. AND, they were profitable.
Stock took a nose dive today as a result of the recap, but look for it to rebound, IMO.
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