Beleaguered British online directory company Scoot.com has warned that without new funds it will exhaust its cash supply in one month.
In order to keep operating, it is negotiating a bridge financing facility of as much as £15 million, and will consider selling its Loot classified ads magazine business if the cash position deteriorates further, though the company is unlikely to recoup much more than half the £180m it paid for the unit last July.
The news came as Scoot – which charges commission for directing users to businesses – sold a 50% holding in Scoot Europe to Vivendi Universal for a nominal fee of one euro.
Scoot recently changed its strategy to focus on its UK operations, which it predicts will break even by the end of 2001 [WAMN: 28-Jun-01].
News source: BBC Online Business News (UK)