Apr 7, 2003 : Frontline Closes Provo Acquisition
📅 - Internet access and Web hosting service provider Frontline Communications Corp. (fcc.net) announced on Monday that it has closed on the acquisition of Mexico-based cellular phone airtime provider Proyecciones y Ventas Organizadas, S.A. de C.V. (Provo).
The closing, says Frontline, resulted in the issuing of 220,000 shares of Frontline series C convertible preferred stock to Provo shareholders. The acquisition will be presented to Frontline shareholders in order to gain approval for matters related to the transaction's structure.
At the same time as the acquisition, Frontline closed a $550,000 debt financing with New York-based investment firm IIG Capital LLC. The loan was made by IIG's "IIG Equity Opportunities Fund, Ltd." About $275,000 of the loan will go directly to the operations of Provo, says Frontline. The remainder will be used to satisfy an outstanding debt, and to pay certain costs related to the acquisition.
"Putting this transaction together and finally getting it to closing took a great deal of time and effort on the part of many of the executives and employees at both Frontline and Provo," said Frontline CEO, Stephen J. Cole-Hatchard. "I am extremely proud of and grateful to all of those involved, as well as to our many shareholders who have patiently awaited this new beginning for our Company." Cole-Hatchard also noted, "Yesterday we were a $5 million revenue-producing internet business holding our own in a tough economy - today we are part of a $100 million distribution and communications company with solid cash flow, terrific growth potential, and a number of new products and services that are expected to be launched soon."
The closing, says Frontline, resulted in the issuing of 220,000 shares of Frontline series C convertible preferred stock to Provo shareholders. The acquisition will be presented to Frontline shareholders in order to gain approval for matters related to the transaction's structure.
At the same time as the acquisition, Frontline closed a $550,000 debt financing with New York-based investment firm IIG Capital LLC. The loan was made by IIG's "IIG Equity Opportunities Fund, Ltd." About $275,000 of the loan will go directly to the operations of Provo, says Frontline. The remainder will be used to satisfy an outstanding debt, and to pay certain costs related to the acquisition.
"Putting this transaction together and finally getting it to closing took a great deal of time and effort on the part of many of the executives and employees at both Frontline and Provo," said Frontline CEO, Stephen J. Cole-Hatchard. "I am extremely proud of and grateful to all of those involved, as well as to our many shareholders who have patiently awaited this new beginning for our Company." Cole-Hatchard also noted, "Yesterday we were a $5 million revenue-producing internet business holding our own in a tough economy - today we are part of a $100 million distribution and communications company with solid cash flow, terrific growth potential, and a number of new products and services that are expected to be launched soon."
Reads: 1930 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/fro040703.cfm
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