eDiets.com completes previously announced registered direct offering

eDiets.com, Inc. (Nasdaq: DIET) today announced that it has completed its previously announced registered direct offering to select institutional investors for an aggregate of 5,275,000 shares. The shares were priced at $1.00 per share, resulting in total net proceeds of approximately $4.7 million, after deducting placement agent fees and other offering expenses.

eDiets intends to use the proceeds from the registered direct offering for general corporate purposes, including working capital to fund future growth opportunities, such as the expansion of advertising related to its fresh-prepared meal delivery service.  

"We are pleased to broaden our institutional shareholder base and appreciate the investment community's confidence in our business model and growth opportunities," said Kevin McGrath, President and Chief Executive Officer of eDiets.com. "This financing strengthened our balance sheet and will enable us to make strategic investments in our business in 2010. Along with the various restructuring efforts we completed in 2009, we believe our improved balance sheet leaves us well positioned to generate improved results in coming quarters as we focus our resources on achieving profitability."

All of the shares of common stock were offered by eDiets.com pursuant to an effective registration statement filed with the Securities and Exchange Commission (SEC). Roth Capital Partners, LLC acted as the sole placement agent in connection with the registered direct offering.

Completion of the registered direct offering is the first in a series of previously announced transactions that are expected to provide the Company with approximately $5.2 million of new equity funding and convert all of its outstanding debt to equity.