Business

Charlotte-based AvidXchange raises $3.5 million in offering

In this file photo, Michael Praeger, CEO and Co-founder of AvidXchange, makes the announcement that it will become the sponsor of The N.C. Music Factory.
In this file photo, Michael Praeger, CEO and Co-founder of AvidXchange, makes the announcement that it will become the sponsor of The N.C. Music Factory. rlahser@charlotteobserver.com

A Charlotte-based payment automation company has raised $3.5 million in a private stock offering, according to a filing with the Securities and Exchange Commission.

AvidXchange filed a Form D with the SEC on Oct. 25. The filing listed a total offering amount of $3.5 million with none remaining to be sold.

The filing said two investors were involved with the offering. AvidXchange also said a sales commission of $210,000 is payable to an entity affiliated with Steve McLaughlin, a member of the company’s board of directors.

AvidXchange plans to open a new Charlotte corporate headquarters in 2017.

The company’s chief executive officer Michael Praeger said the new 200,000 square-foot, six story office building on Hamilton Street will house up to 1,000 employees, and the company plans to evaluate its space needs and assess a second, planned building on the site within a year.

As of May, the company employed almost 700, and had added 250 employees since January.

The payment automation company also bought the naming rights to the Music Factory entertainment and nightlife complex earlier this year.

No other details were offered in the filing regarding the firm’s use of the proceeds.

Private companies similar to AvidXchange, which rely on a Reg D exemption, aren’t required to register securities offerings with the SEC, but instead they must file a Form D electronically with the SEC after they sell the securities.

The form can be found here.

This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism

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