$15 Million in Funding for Tickets.com

Despite posting a wider first-quarter loss, Tickets.com Inc. of Costa Mesa enjoyed a spike in its sagging stock price Wednesday after disclosing that it has picked up $15 million in private financing.

The company said in a press release that the proceeds will fund operations through late this year, beyond the time it expects to achieve cash-flow profitability. The stock gained 20 cents to close at 52 cents a share on Nasdaq.

Earlier Wednesday, Tickets.com reported a first-quarter loss of $28 million, or 47 cents a share, compared with last year’s first-quarter loss of $21.6 million, or 37 cents a share. Revenue rose to $15.1 million from $14.1 million.

Investors apparently were cheered by the announcement that the company had sold 25 million in preferred shares, which can be converted to stock. The company will receive $6.5 million this month and the rest after shareholder approval.

The preferred equity financing will be provided by Great Atlantic Partners LLC and International Capital Partners.

“Financing will let them continue on for a while,” said David Kathman, an analyst at Morningstar. “But if they’re going to survive, the company is going to have to find a real-world partner.”

Kathman said the stock’s sharp percentage rise is due to its trading as a penny stock.

“With a penny stock like this, it doesn’t take a whole lot of buying to make the stock go wacky,” he said.

A representative from the company was not immediately available for comment.