Canada adultery website owner suspends IPO: source

Mon Feb 1, 2010 2:48pm EST
 
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TORONTO (Reuters) - Avid Life Media Inc, which runs adult dating websites including one that facilitates extramarital affairs, appears to be having problems getting a date.

The Toronto company had planned to go public on the Toronto Stock Exchange in a matter of weeks to raise at least $60 million in an initial public offering, according to sources and media reports.

But one source who has been provided details about the offering said efforts to woo investors seem to have met with a cool response.

"They're putting that plan on hold, citing market conditions," said the source, who spoke on condition of anonymity.

Avid could not be reached immediately for comment, but media reports in recent days indicated banks and big investors were hesitant to get involved in the deal, despite Avid's solid financial record.

Avid runs racy dating websites including the Ashley Madison Agency, whose website masthead reads "Life is short, Have an affair" (www.ashleymadison.com) and which describes itself as the world's premier discreet dating service, with more than five million anonymous members.

Avid Life, which was being advised by GMP Capital Inc, had planned to use the funds raised from the offering to acquire another company, sources said.

"They are trying to diversify their revenues away from Ashley Madison," said a second source on condition of anonymity. "They have a signed a term sheet to buy another company and have 75 days to get the deal done."

Avid also runs CougarLife.com, which caters to older, career-oriented women seeking younger men as lovers, and EstablishedMen.com, which promises to link established men with attractive and ambitious young women.

GMP Capital, which could not immediately be reached for comment, was the only agent on the deal.

(Reporting by Pav Jordan; Editing by Jeffrey Hodgson and Peter Galloway)