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High-flying Internet retailer

(OSTK) - Get, Inc. Report

continues to find believers, drumming up enough demand to sell a bigger-than-expected slug of new stock and convertible bonds in separate offerings.

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The Salt Lake City closeout specialist announced Thursday it has agreed to sell 1.2 million common shares and $100 million of convertible senior notes in separate deals that will net it about $165 million. The company had initially pegged the sales at 1 million shares and $75 million of notes.

The notes went out at fairly benign terms to the seller, carrying a 32.5% conversion premium and a 3.75% coupon. Overstock's common shares closed Wednesday at $57.53, the price at which the stock deal was sold.

The company will use the money for working capital and general corporate purposes. Some of it could be used to acquire complementary technologies or businesses.

Overstock's use of public-market financing has raised capital allocations concerns and attracted short-sellers to its shares. For an analysis of the arguments

, click here.