PARTS iD, Inc., the owner and operator of CARiD.com and other digital commerce platforms for the automotive aftermarket, announced two new funding agreements that deliver $7million in immediate proceeds to the company. The first is a $3.75 million investment by Lind Global Partners II, LP, an investment fund managed by The Lind Partners, a New York based institutional fund manager. Two company insiders, including CEO, Lev Peker and one external investor co-invested an additional $3.25 million alongside Lind. The company intends to use the capital to repay and retire outstanding debt owed to JGB Capital as well as for general working capital needs.
Titan Partners Group, a division of American Capital Partners, LLC, is acting as sole placement agent for the offering, the company said.
“This new financing will provide additional flexibility as we continue our focus on enhancing profitability and growing our share of the automotive parts industry,” said Peker. “We are pleased to have The Lind Partners as an investor and appreciate their support of our technology-driven business model.”
Lind Founder, Jeff Easton said, “The large and fragmented automotive aftermarket industry is ripe for increased online penetration, and PARTS iD has made great headway with their proprietary technology. We are excited to be a part of the PARTS iD turnaround story and to support their growth and profitability objectives.”
The new capital obtained from Lind is in the form of a senior-secured promissory note with a 12-month maturity, 0% annual interest rate and is convertible into shares of the company’s Class A common stock (the “Common Stock”) at the option of Lind. Lind will also receive warrants to purchase 12,837,838 shares of common stock exercisable at $0.50 per share. The company also has the ability to obtain up to a total of $10 million of incremental senior-secured debt pursuant to the funding agreement, and expects to draw an additional $1 million within 30 days of the closing. The transaction is subject to the satisfaction of customary closing conditions.
The new investment by the Investors is in the form of junior secured promissory notes in the aggregate principal amount of $3.25 million, which are convertible into shares of the company’s Common Stock pursuant to the terms described therein.
