Youbet raises $2M via notes

Youbet.com, the online horse race wagering company, has raised $2 million by selling notes to private investors, the company said on Wednesday.

The notes bear 10 percent interest and are due in two years, according to Chuck Champion, Youbet's chief executive officer. The notes also entitle investors to purchase two-thirds of a share of the company's stock for each dollar invested. Champion said he could not disclose what price the investors would be required to pay for each two-thirds share.

Youbet's stock was up more than 10 percent on each of four consecutive trading days stretching back to last week, rising from 97 cents at the market's open on Feb. 13 to $1.62 at the close on Tuesday. On Wednesday, however, the stock fell 11 cents to $1.52.

Youbet officials recently announced that the company had positive cash flow for the first time in the fourth quarter of 2002.