BriteSmile Grins After Netting $20M

BriteSmile Inc.’s outlook is a little brighter following a $20 million investment by funds affiliated with Pequot Capital Management.

According to documents filed with the Securities and Exchange Commission, three Pequot funds purchased an aggregate of 3,333,333 BriteSmile common shares at $6 per share.

Pequot Private Equity Fund II LP purchased $10 million while both Pequot Partners Fund LP and Pequot International Fund Inc. purchased $5 million. The aggregate investment represents a 14.22% stake in the company for Pequot.

The $6 sale price was equal to 85% of the average closing price for the five days preceding the sale. At press time, shares were trading at $11.625.

Pequot also gained the right to appoint one person to the company’s board of directors.

Proceeds are slated for working capital purposes, expansion of the company’s retail presence and development of the company’s infrastructure.

The company currently operates 10-company owned teeth-whitening centers and plans to open an additional 10 stores. The company’s teeth-whitening process is also offered through more than 200 dentists. The company reported revenue of $2.345 million for the six-month period ended Sept. 30, 1999.