Company profile - eMerge Interactive

Part
01
of one
Part
01

Company profile - eMerge Interactive

While eMerge acquired over ten companies between 1999 to 2006, it has never merged with a different business. Although the company did not mention its investors, it provided a list of entities it issued stocks to. No list of investors or investments could be found in third party resources like Crunchbase or news publications like Fortune either. A full list of eMerge's acquisitions can be found in this spreadsheet.

Investors

  • In September 2001, eMerge sold 4,000,000 shares of its common stock to Allflex Holdings, Inc. (“Allflex”) for $2.7 million in cash.
  • In September 2003 and October 2003, eMerge issued 30,000 shares of its class A common stock for 60,000 shares, to "Investor Relations International as consideration for investor relations services."
  • In November 2003, eMerge issued 1,605,136 shares of its class A common stock and "warrants exercisable for 802,568 shares of [its] Class A common stock at an exercise price of $0.98 to The Biegert Family Trust for $1,000,000 in cash."
  • In January 2004, the company issued 2,333,333 of its class A common stock, "additional investment rights exercisable for 830,508 shares of [its] Class A common stock at an exercise price of $3.00 and warrants exercisable for 830,508 shares of [its] Class A common stock at an exercise price of $3.6875 to Mainfield Enterprises, Inc., Cranshire Capital L.P., Smithfield Fiduciary LLC and Omicron Master Trust for $7.0 million in cash."
  • In December 2004, eMerge issued 2,500,000 shares of its class A common stock at $1.60 per share to Steelhead Investments Ltd, Omicron Master Trust, and Cranshire Capital LP for $4 million in cash. Included in this deal were additional investment rights exercisable for 1,250,000 shares of its common stock at $1.60 per share and warrants exercisable for 875,000 shares of its common stock at $2 per share.
  • In January 2005, eMerge issued more of its shares to Steelhead Investments Ltd, Omicron Master Trust, and Cranshire Capital LP, specifically 2,900,000 of its class A common stock at $1.40 per share and "warrants exercisable for 435,000 shares of [its] Class A common stock at an exercise price of $1.75 per share."
  • eMerge issued 25,424 shares of its class A common stock valued at $30,000 to Kenneth G.Jordan in February 2005 as consideration for consulting services.
  • In March 2005, the company again issued 25,000 shares of its class A common stock and a warrant exercisable for shares of its class A common stock at $3 per share worth "$31,000 to Murdock Capital Partners as consideration for investor relations services."
  • In November 2005, eMerge offered "80,645 shares of class A common stock to each of AgriCapital Corporation and B. Riley & Co., for a total issuance of 161,290 shares, as consideration for consulting services." The shares were worth $50,000.
  • In January 2006, the company issued "8,000,000 shares of [its] class A common stock at $0.36 per share and warrants exercisable for 5,000,000 shares of [its] class A common stock at an exercise price of $0.45 per share to The Biegert Family Trust for $2.9 million in cash."

Mergers & Acquisitions

  • In February 1999, eMerge bought out all the assets of CIN, a company that gathered and distributed data for use in the cattle sector, for $2.3 million. This purchase price consisted of a cash payment of $358,000, 750,000 of eMerge's class A common stock worth $720,000, being responsible for $812,000 in liabilities, and agreeing to pay the "pay the first $350,000 from Internet sales of third-party products over the Website and transaction costs of $57,000. "
  • eMerge acquired all the outstanding stock of Cyberstockyard in March 1999 for $542,000. The company sold cattle via auction software over the internet.
  • In May 1999, eMerge bought out all the assets of Professional Cattle Consultants, a company with a proprietary database of cattle, for about $1.8 million.
  • eMerge purchased 19% of Turnkey Computer Systems' common stock for $1.8 million in August 1999. Turnkey Computer Systems offered accounting legacy systems to feedlots.
  • In May 2000, eMerge acquired some tangible and intangible assets connected to Eastern's rollover business for $17 million in cash, 1,215,913 shares of its common stock worth $14.5 million, and $4.5 million in cash expected to be paid a year after the transaction closing date or earlier. Eastern's rollover business specialized in purchasing cattle for immediate or short-term resale.
  • eMerge purchased W.P. Land and Livestock, also known as Jordan Cattle Auction and its real estate for $6.4 million in cash in June 2000. The company purchased and resold cattle via its auction facilities.
  • In July 2000, eMerge acquired Edens and its real estate for $2.4 million in cash and almost 84,000 shares of its common stock worth $1 million. Eden specialized in buying cattle for resale.
  • In August 2000, eMerge purchased LeMaster and its real estate for $3.1 million in cash, $300,000 to be paid a year after the transaction closing date or earlier, and 125,819 shares of its common stock worth $2.2 million. LeMaster was focused on buying cattle for resale.
  • Please see the other acquisitions that eMerge has made in this spreadsheet.

Partnerships

  • In 2001, Kansas’ Beef Marketing Group, an organization whose members feed over 450,000 cattle year, struck a partnership with eMerge to manage its individual-animal identification program by leverage eMerge's CattleLog system. The system integrates tools "electronic identification tags (“EIDs”), handheld computers and proprietary software to capture individual animal data."
  • Oklahoma Cattlemen’s Association (OCA) collaborated with eMerge in 2001 to manage the "individual-animal tracking and marketing systems of the Association’s new Oklahoma Quality Beef Network (OQBN)—a program designed to help member producers capture the value they have added to their cattle and capitalize on the growing demand for preconditioned, process-verified cattle."
  • In 2001, eMerge was chosen by Five States Beef Initiative to manage its individual animal information management and data collection for information-sharing system, vertically organized bee-production, and marketing.
  • Ranchers Renaissance, one of the largest beef-production cooperatives in the US at the time, selected eMerge to provide "individual-animal tracking and data-management services for the cooperative’s quality-controlled, grain-fed cattle for the third straight year" in 2001.

News

  • In February 2000, the Motley Fool reported that eMerge Interactive debuted its IPO. The company sold eight million share at $15 per share making the company worth $1.6 billion.
  • Although pay walled, this article by the Wall Street Journal published on March 27, 2000, mentioned that "Emerge Interactive is one Internet stock worthy of the claim: first "mover" advantage. Yet it remains to be seen whether this nascent online cattle rustler is really destined to be more of a cow-chip than a blue-chip." The article goes on to state that eMerge Interactive rapidly reached a market value of $1.5 billion in less than two months.
  • A January 2002 article by Cnet stated that eMerge "met estimates for its third quarter with a loss of 13 cents a share, and reported sales of $277 million, up from $160 million in the second quarter and $16 million a year ago."
  • An article published by NBC News in April 2004 reported that eMerge was a struggling company trying to tweak the beef scanners it sold at the time to uncover germs on humans. The article stated that eMerge lost almost $200 million since it was established.
  • Biospace wrote an article on December 3, 2004, titled "eMerge Interactive Closes On $4.0 Million Private Placement Financing." The article mentioned that eMerge closed its $4 million "private placement of common stock that was previously announced on November 22, 2004. At closing, eMerge sold 2,500,000 common shares at a purchase price of $1.60 per share."
  • On the 16th of February 2007, Beef Magazine reported that eMerge was pulling the plug on its company but would sell CattleLog and VerifEYE as these subsidiaries had a promising future.
  • On the 21st of February 2007, Agriculture News reported that eMerge's stock would be "delisted from The Nasdaq Capital Market at the opening of business on February 27, 2007, pursuant to Marketplace Rules 4300 and IM-4300."

Other

  • As of December 2000, eMerge had 282 employees, 278 of whom were full time employees. Its revenue at the time was $803 million, up from $42.2 million in 1999. The company made $800.9 million from cattle sales alone in 2000.
  • In 2001, the company's revenue increased to roughly $1.2 billion. At the time, it had 287 employees, 150 of whom worked full time.
  • By 2002, eMerge's employees reduced to 52, most likely because it had to sell off all its previously acquired cattle operations so it could improve its working capital and productivity.
  • In 2004, eMerge had only 41 employees, 40 of whom worked full time.
  • In 2005, eMerge had 42 employees, all of whom worked full time. By 2006, the company just had 24 employees.

Sources
Sources