Publicly Traded Banks.com Enters Into Agreement with Domain Capital
I just learned that Banks.com, a company that is publicly traded on the American Stock Exchange under ticker symbol BNX, has entered into a “sale-leaseback” agreement with domain financing company, Domain Capital.
It appears that Domain Capital financed the Banks.com domain name for $600,000, and Banks.com is required to make monthly payments of $14,273.96 for 5 years. With interest, the total amount Banks.com is required to pay over the course of the agreement is $856,437.60.
For me, it’s good to see publicly disclosed deals like this because it shows others that there are options for domain financing. I would imagine it could be tough to get a bank to give a loan on a domain name without a significant amount of red tape (if at all).
The guys at Domain Capital attend virtually every domain conference and tradeshow, and they know the market better than most, allowing both companies to strike a fair deal for a valuable domain asset. This allows a domain owner to get liquidity more easily.
The company filed a SEC Form 8-k to announce the details of this agreement.
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