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join:2000-07-08
Charleston, WV | DSL.net appears to have more money DSL.net company line:
October 16, 2001 - VantagePoint Venture Partners, a private investment firm with more than $2.5 billion under management, has agreed to invest $15 million in DSL.net convertible redeemable preferred stock, subject to certain conditions. The investment, which has been approved by the DSL.net board of directors, is expected to fund the company through cash flow positive, based on the company's current plans and projections.
VantagePoint will initially invest six million dollars in DSL.net, with an additional nine million dollars invested in two installments, contingent upon the achievement of certain business objectives by DSL.net. The transaction is contingent upon the execution of definitive documentation and any necessary stockholder and regulatory approvals.
"We are very pleased that VantagePoint has agreed to invest in DSL.net. VantagePoint has been a great partner to us, and this further investment underscores their confidence in our ability to execute on our business objectives," said David Struwas, chairman and chief executive officer. "With this financing, DSL.net can continue to focus its collective energies on maintaining growth and providing quality Internet solutions for small- and medium-sized businesses across the U.S."
"VantagePoint has been an investor in DSL.net from the beginning. We've watched this company execute to plan, quarter after quarter. Given DSL.net's track record, its seasoned management team, and its strong competitive position, we are very excited about its future prospects," said James Marver, managing partner at VantagePoint Venture Partners.
The company also indicated that it has implemented an expense reduction plan, which includes the elimination of 86 employee positions across four locations. The company expects that these actions will enable it to achieve its cost reduction goals, while continuing to allow it to support its existing customers and grow its new customer base.
"We are now ready to take the DSL market by storm," added Keith Markley, president and chief operating officer. "Business demand for high speed data services remains strong. With this funding, and as one of the few national providers in the DSL space, we are in a unique position to capitalize on that demand." |
