Tuesday, October 1, 2013

Reuters: Small Business News: Website development platform Wix.com files for $100 million IPO

Reuters: Small Business News
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Website development platform Wix.com files for $100 million IPO
Oct 1st 2013, 22:06

Tue Oct 1, 2013 6:06pm EDT

(Reuters) - Wix.com Ltd, which helps companies build and operate websites, filed with the U.S. regulators on Tuesday to raise up to $100 million in an initial public offering.

Wix, which sells its cloud-based templates to design websites to small business owners, said revenue grew to $43.7 million in 2012 from $9.9 million 2009. Net losses widened 30 percent in the period.

The Israel-based company, whose App Market allows companies to install more than 140 different apps on their websites, said 37 million businesses, organizations, professionals and individuals used its platform.

Wix intends to use the net proceeds from the IPO to step up headcount, to increase its selling and marketing expenses focused and for general corporate purposes.

The company plans to list its common stock on the New York Stock Exchange under the symbol "WIX." It did not reveal how many shares it planned to sell or their expected price.

JP Morgan Securities LLC, Merrill Lynch, Pierce, Fenner and Smith Inc and RBC Capital Markets LLC were underwriting the IPO, Wix told the U.S. Securities and Exchange Commission in a preliminary prospectus. (link.reuters.com/cun53v)

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

(Reporting by Varun Aggarwal in Bangalore; Editing by Joyjeet Das)

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Reuters: Small Business News: U.S. small business borrowing rises in August, slowly

Reuters: Small Business News
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U.S. small business borrowing rises in August, slowly
Oct 1st 2013, 09:00

By Ann Saphir

Tue Oct 1, 2013 5:00am EDT

(Reuters) - Borrowing by U.S. small businesses edged up in August, pushing an index of borrowing to a six-year high.

The Thomson Reuters/PayNet Small Business Lending Index, which measures the volume of financing to small companies, rose 1 percent to 116.6, the highest level since August 2007. The index registered 115.4 in July, revised from an initial reading of 117.7, PayNet said on Tuesday.

Historically, PayNet's lending index has correlated to overall economic growth one or two quarters in the future.

The reading came as investors were boosting expectations the Federal Reserve would likely reduce its massive stimulus program in September.

Those expectations, however, were misplaced. The Fed decided at its meeting last month that the economy was not strong enough to justify reductions in stimulus, and it reiterated its promise to keep buying bonds until the labor market strengthens further.

Because small companies typically take out loans to buy new tools, factories and equipment, more borrowing could signal more hiring ahead.

But the sluggish pace at which borrowing is increasing makes accelerated growth in jobs unlikely, PayNet President Bill Phelan said.

"I would expect continued slow growth in the economy," Phelan said in an interview.

The outlook for the jobs market is crucial to the Fed's decision on whether to cut back on its bond-buying stimulus, with Fed Chairman Ben Bernanke saying he wants further proof of labor market strengthening before doing so.

Low financial stress at small businesses, with more of them paying back loans on time, could bode well for future borrowing.

Delinquencies of 31 to 180 days fell in August to an all-time low of 1.48 percent of all loans made, according to the Thomson Reuters/PayNet Small Business Delinquency Index.

Accounts overdue as a percentage of all loans have fallen steadily since rising as high as 4.73 percent in August 2009.

PayNet collects real-time loan information such as originations and delinquencies from more than 250 leading U.S. lenders.

(Reporting by Ann Saphir; Editing by Leslie Adler)

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Monday, September 30, 2013

Reuters: Small Business News: Storage product retailer Container Store files for $200 million IPO

Reuters: Small Business News
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Storage product retailer Container Store files for $200 million IPO
Sep 30th 2013, 21:37

Mon Sep 30, 2013 5:37pm EDT

(Reuters) - The Container Store Group Inc, a retailer of storage products, filed with U.S. regulators to raise up to $200 million in an initial public offering of its common stock.

The company, which sells a range of storage products from laundry baskets to luggage, said it operates 62 stores in 22 American states and the District of Columbia.

The Container Store's net sales grew 11.5 percent to $706.7 million in the year ended March 2. Net loss narrowed to $130,000 from $30.7 million.

The 35-year-old retail chain said it plans to use the proceeds of the offering to pay a dividend to holders of its senior preferred stock and to repay debt.

The Coppell, Texas-based company intends to list its common stock on the New York Stock Exchange under the symbol "TCS," , it told the U.S. Securities and Exchange Commission in a preliminary prospectus. (link.reuters.com/mag53v)

The filing did not reveal how many shares the company planned to sell or their expected price.

J.P. Morgan Securities LLC, Barclays Capital Inc, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co LLC, Merrill Lynch, Pierce, Fenner & Smith Inc, Wells Fargo Securities LLC and Jefferies LLC were the lead bookrunners for the IPO.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

(Reporting by Varun Aggarwal in Bangalore; Editing by Joyjeet Das)

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Thursday, September 26, 2013

Reuters: Small Business News: Canada chocolate factory may get new life as marijuana farm

Reuters: Small Business News
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Canada chocolate factory may get new life as marijuana farm
Sep 27th 2013, 00:02

By Julie Gordon

Thu Sep 26, 2013 8:02pm EDT

(Reuters) - A Canadian start-up wants to turn an empty chocolate factory in eastern Ontario into a production facility for medical marijuana, a possible boost for a local economy that has been hurting since the landmark Hershey plant shut down in 2008.

The old factory, which for decades churned out Hershey chocolate bars, has been conditionally sold to a start-up called Tweed Inc, which plans to use about a third of the 470,000 square foot plant to grow medical marijuana.

"It's an exciting opportunity," said Mark Zekulin, Tweed's vice president of community engagement. "There is a demand and there's good opportunity in this market."

Tweed Inc has applied to Health Canada for a permit to grow medical marijuana at the factory in Smith Falls, Ontario, some 350 km (220 miles) from Toronto. It will distribute its product to patients across Canada who have permission to use the drug.

Canada legalized medical marijuana in 2001, authorizing an initial 500 people to grow and smoke the drug. That number has since ballooned to about 30,000, causing headaches for those who regulate and police marijuana use.

The government earlier this year responded with a plan to take legal production out of private homes and license private companies to produce medical marijuana for authorized patients.

Hence Tweed's efforts to get into the legal growing and distribution game. The company, which expects to hear back from regulators soon, plans to spend about C$1.5 million ($1.45 million) retrofitting the old chocolate factory. Once up and running, the plant will employ about 100 people.

It's a glimmer of hope for the town of Smith Falls, which has so far embraced Tweed's growing plan.

"In the last five or six years, we've lost 1,700 jobs," said Dennis Staples, mayor of the town of 9,000 people. Expressing hope that Tweed's investment could trigger other jobs, he added: "This announcement by Tweed Inc is welcome news for us."

Most of those jobs losses were at the Hershey plant, but the closure of a few other local businesses and a provincial facility also cut jobs.

($1 = 1.0332 Canadian dollars)

(Reporting by Julie Gordon; Editing by Janet Guttsman and Andrew Hay)

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Reuters: Small Business News: New delays hit Obamacare rollout before October 1 launch

Reuters: Small Business News
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New delays hit Obamacare rollout before October 1 launch
Sep 26th 2013, 22:32

Get Covered America volunteers listen to a training session before canvassing a Chicago, Illinois neighborhood to talk with residents about the Affordable Care Act - also known as Obamacare - September 7, 2013. REUTERS/John Gress

Get Covered America volunteers listen to a training session before canvassing a Chicago, Illinois neighborhood to talk with residents about the Affordable Care Act - also known as Obamacare - September 7, 2013.

Credit: Reuters/John Gress

By David Morgan

WASHINGTON | Thu Sep 26, 2013 4:22pm EDT

WASHINGTON (Reuters) - The U.S. government announced new delays in rolling out President Barack Obama's healthcare reform, saying small business and Spanish-language health insurance enrollment services would not begin on October 1 as planned.

Five days before enrollment is set to begin for millions of uninsured Americans, the U.S. Department of Health and Human Services (HHS) said employers with 50 or fewer workers will not be able to sign their staff up for private insurance in federally operated exchanges until a month later, November 1, because of technical problems.

The White House also said a Spanish-language service for Latinos, who make up about one-third of the 47 million uninsured in the country, will also not be available until "sometime in October."

Administration officials did not explain the nature of the technical problems, but they emphasized that full online enrollment for other individuals will be available on October 1 under the Affordable Care Act, commonly known as Obamacare.

The news stirred new doubts about how successful Obamacare will prove to be after months of delays and technical glitches following three years of legal and political challenges from Republicans and other critics.

Obama and fellow Democrats are trying to stave off Republican attempts to delay the entire healthcare reform launch with the threat of shutting down the federal government or risking a U.S. default on its credit.

"Obama was literally praising Obamacare when another delay was announced," tweeted Republican Rep. Lynn Westmoreland of Georgia.

The administration sought to play down the delays, saying that new benefits for the uninsured would still begin on January 1. Small businesses would be able to shop for coverage next week, fill out paper insurance applications or discuss their options with call center staff.

"As promised, people will be able to see what's in the marketplace, how to look at coverage, ask questions about whether or not this is good for their employees, find out about the tax credit then beginning November 1st, do the online enrollment," Health and Human Services Secretary Kathleen Sebelius said in an interview with cable-TV channel MSNBC.

A release by the HHS focused on a ramp-up in government education and outreach efforts toward small businesses, mentioning the enrollment delay only in passing in the 8th paragraph for the Small Business Health Options Program.

SHORT-TERM GLITCH?

Word on the delays surfaced just after Obama wrapped up a speech in which he lashed out at his Republican opponents for predicting the law's failure, declaring: "The Affordable Care Act is here to stay.

One Republican, Senator John Barrasso of Wyoming, said in response that "this is just the latest example of his rhetoric about the law not matching reality. It's clear that the exchanges aren't ready for prime time."

But some members of the business community sounded a more supportive note.

"This is a huge undertaking and October 1 is not the only opportunity for small businesses to enroll. The glitches will come and we hope they will be speedily resolved. But in the meantime I don't have the sense that small businesses were lined up at the gates waiting to get in," said Neil Trautwein, healthcare lobbyist for the National Retail Federation.

John Arensmeyer, chief executive of the Small Business Majority, said Obamacare would bring major change to the U.S. healthcare system "so having a month delay is not a huge issue in the greater scheme of things."

(Additional reporting by Roberta Rampton in Washington and Lewis Krauskopf in New York; Editing by Michele Gershberg and Grant McCool)

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Reuters: Small Business News: Ford buys small software startup to bolster 'connected car' offerings

Reuters: Small Business News
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Ford buys small software startup to bolster 'connected car' offerings
Sep 26th 2013, 16:10

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The sign at a Ford dealer is pictured in Lakewood, Colorado September 4, 2013. REUTERS/Rick Wilking

The sign at a Ford dealer is pictured in Lakewood, Colorado September 4, 2013.

Credit: Reuters/Rick Wilking

By Deepa Seetharaman

DETROIT | Thu Sep 26, 2013 12:10pm EDT

DETROIT (Reuters) - Ford Motor Co has bought a five-year-old software company for less than $10 million in a move the No. 2 U.S. automaker hopes will beef up its in-car connectivity that is critical to winning over younger, more affluent buyers.

The acquisition of Ferndale, Michigan-based Livio will also help promote the automaker's method of connecting smartphones with the vehicle as an industry standard, which will help speed the pace of app development, Ford said on Thursday.

"With the acquisition, Livio now has the ability to advocate Ford's contribution of SmartDevice Link as a standard," Paul Mascarenas, Ford's chief technology officer, told reporters. "That, I think, is a big opportunity."

The deal comes ahead of an expected boom in cars that can connect with drivers' smartphones. Ford expects sales of such cars to grow to 21 million by 2018, up from 2 million in 2012.

Ford will keep the Livio name and the 11-person firm will operate as a wholly owned Ford subsidiary. Livio will report to Ford's electrical and electronics systems engineering division.

Livio, founded by now 31-year-old Jake Sigal, will continue to assist its existing customers, which include other automakers, suppliers and third-party software developers.

The deal with Livio marks Ford's first acquisition of a technology company in about 13 years, Mascarenas said.

In October 2000, Ford entered a joint venture with Qualcomm Inc dubbed Wingcast that allowed drivers to issue voice commands to operate the car radio or phones. That venture shut down almost two years later.

(Editing by Matthew Lewis)

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Reuters: Small Business News: U.S. delays online enrollment for small-business healthcare exchanges

Reuters: Small Business News
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U.S. delays online enrollment for small-business healthcare exchanges
Sep 26th 2013, 16:48

Get Covered America volunteers listen to a training session before canvassing a Chicago, Illinois neighborhood to talk with residents about the Affordable Care Act - also known as Obamacare - September 7, 2013.

Credit: Reuters/John Gress

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