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Filed Pursuant to Rule 424(b)(3)
Registration Number 333-39050
RESOURCEPHOENIX.COM
PROSPECTUS SUPPLEMENT (To Prospectus Dated August 25, 2000)
This Prospectus Supplement supplements the Prospectus dated August 25, 2000
of ReSourcePhoenix.com relating to the resale by Torneaux Ltd. of up to
8,800,000 shares of ReSourcePhoenix.com's Class A common stock, par value $0.001
per share. This Prospectus Supplement should be read in conjunction with the
Prospectus, and this Prospectus Supplement is qualified by reference to the
Prospectus.
RECENT DEVELOPMENTS
On August 31, 2000, ReSourcePhoenix.com's wholly owned subsidiary,
ReSource/Phoenix, Inc., entered into a senior loan and security agreement with
Lease Management Associates, Inc., or LMA, an affiliate of Gus Constantin,
ReSourcePhoenix.com's Chairman, Chief Executive Officer and majority
stockholder, for a line of credit up to $7,000,000. During the five-year term of
the loan, ReSourcePhoenix, Inc. will make monthly interest payments and a
principal payment at the end of the five-year term. The interest rate on the
loan is approximately 12.0%. Once ReSource/Phoenix, Inc. has drawn $3,000,000
under the line of credit, the maximum monthly draw permitted is $1,000,000.
ReSourcePhoenix.com issued a guaranty to LMA in connection with the loan to its
wholly owned subsidiary. In addition, ReSourcePhoenix.com issued warrants to LMA
to purchase up to 1,050,000 shares of Class A common stock at $1.919 per share,
the average closing price for the five trading days following the date of the
agreement.
ReSourcePhoenix.com may need to raise additional funds from other sources
in the future. Outside sources may not provide ReSourcePhoenix.com with money
when needed. See "Risk Factors - We may have difficulty raising money we need
for our operations in the future," beginning on page 5 of the Prospectus, for
more detailed information.
The date of this Prospectus Supplement is September 13, 2000.
