Avatech Raises $6M

Avatech sells US$6 million of itself to outside investors:

* Tail Wind Fund and Solomon Strategic Holdings bought 4,000 shares at $1,000 each. Avatech pays them 10% a year in cash dividends or 5% a year in share dividends.
* Pacific Asset Partners and Sigma Opportunity Fund bought 600,000 shares at $2 each.

With the $6 million raised, Avatech uses it to reduce $6.5 million of debt incurred through the purchase of Sterling Systems and Consulting. These two fundraisers replace a failed attempt a month earlier, where a deal to sell of $20 million worth of Avatech stock to a private equity firm collapsed.