Another sign that Answers.com (NSDQ: ANSW) may not be able to complete its $100 million acquisition of Lexico (parent of Dictionary.com) … in a filing with the SEC this morning, the company said that it has extended the original 180-day deadline (from July 13, 2007) by 48 days, to 228. In return for the longer wait, Lexico will get a $500,000 reimbursement if the deal falls through, up from the previously agreed $400,000.
Answers can’t complete the deal unless it can raise the funds, up to a planned $140 million, which it said it would do through common stock, preferred stock, debt and warrants. So far, though, the company hasn’t made much progress towards this goal. The company’s share count is exactly where it was when the plan was first announced, suggesting no share sales, and its recent cash flow statement confirms that it’s done little or no other financing activity since then. A couple weeks after the original announcement, Answers announced that it had taken a major hit due to an algorithm change at Google. Between that and the tightened credit markets, it’s easy to understand the hold up.
{"source":"https:\/\/gigaom.com\/2007\/11\/16\/419-answerscom-extends-deadline-for-lexico-acquisition\/wijax\/49e8740702c6da9341d50357217fb629","varname":"wijax_0a5a49d3ec6503107694138ab32a98d5","title_element":"header","title_class":"widget-title","title_before":"%3Cheader%20class%3D%22widget-title%22%3E","title_after":"%3C%2Fheader%3E"}