Officials at Datamarine International Inc. in Mountlake Terrace said Friday they continue to pursue $6 million in investment capital even though an initial letter of intent from High Desert Partners LLP has expired. In addition to buying shares in the company, High Desert had planned to offer Datamarine a bridge loan. Neither has occurred, and Datamarine president David Thompson said both remain under discussion. “It is our understanding that HDP has had several pending transactions delayed, which has delayed closing of both its proposed bridge loan and its $6 million investment in Datamarine,” Thompson said, adding the company is also pursuing other potential investors. Datamarine, which produces marine and land-based communications equipment, was forced to lay off much of its staff earlier this year because of financial difficulties stemming from a government delay in issuing radio licenses.
A sharp drop in the costs of gasoline and other energy products helped drive down wholesale prices in July by the largest amount in eight years. With inflation low, Federal Reserve policy-makers will have more leeway to continue reducing interest rates in their effort to avert a recession when they meet on Aug. 21, economists said. The 0.9 percent plunge in July’s wholesale prices, reported Friday by the Labor Department, came after a Fed survey of business conditions around the country that suggested the economy had stalled in June and July.
US Airways said Friday it anticipates a loss of $160 million in the third quarter because of reduced spending by business travelers. The carrier also warned investors about a $405 million pretax charge it will record to reflect the declining market value of its fleet. The projected loss, which excludes unusual items, translates to $2.38 a share. US Airways lost $30 million, or 45 cents a share, in the third quarter of 2000. Analysts surveyed by Thomson Financial/First Call had been predicting a loss of $1.16 a share.
An online currency promoted as the perfect Internet gift certificate is apparently no longer redeemable. New York-based Flooz.com Inc. said Friday it had suspended operations and is seeking a merger partner. The company sold a “currency” called Flooz, which users bought with hard currency and then were able to spend online by visiting several dozen sites that accepted it, including Barnes&Noble.com and TowerRecords.com. Those sites and others have removed Flooz payment options, but other sites on the Web still tout Flooz, many displaying banner ads with the smiling face of Whoopi Goldberg, the company spokeswoman hired in an $8 million ad campaign. The company’s Web site, which made a splash with its $35 million in initial investments, closed down Wednesday.
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