TECHNOLOGY / MORE ON TECH : 2TheMart CEO to Lend Firm Up to $2 Million

2TheMart.com said it will borrow up to $2 million from its chief executive, Steven Rebeil, after the Internet auction start-up’s effort to raise $10 million in a private stock sale netted just $530,000. The Irvine-based company owes IBM $7.8 million of the $10.3-million cost of building a Web site to compete with online auction leader EBay. It had $2.1 million of cash remaining on June 30, it said last week. The site won’t be ready until the fourth quarter. 2TheMart.com shares rocketed twenty-fivefold in January after the company’s initial public offering. They have since plunged more than 87% as its Web site was delayed, it had difficulty raising capital and its first auditor departed. On Tuesday, the shares closed down 41 cents at $6.25 in over-the-counter trading. A company spokesman said the terms and collateral for the loan have not been finalized.