Apr, 2001 : Interliant Secures $20 Million In Future Funding

📅 April 18, 2001 - Interliant Inc. (interliant.com), a leading global application service provider, announced on Wednesday that it has entered an agreement with affiliates of Charterhouse Group International Inc., and SOFTBANK Technology Ventures VI, LP, and its related funds. The deal has secured a total of $19 million in future funding for Interliant. In a separate agreement, the company also agreed to sell back its investment in EYT Inc. for $1 million dollars.
According to the deal with Charterhouse and Softbank, the two investors have agreed to purchase 190 units comprised of convertible notes and common stock in exchange for the total of $19 million dollars, $10.5 million coming from Charterhouse and $8.5 million from Softbank.
Interliant will issue the companies warrants for the purchase of shares of Interliant's common stock. Interliant will then have the right to require Charterhouse and Softbank to purchase their respective shares, or a portion of them, any time through April 2002.
Under the deal with EYT Inc., an entity controlled by Charterhouse and Softbank, EYT has committed to repurchasing Interliant's investment for $1 million, which was Interliant's cost for the investment. The EYT transaction will take place at the same time as the closing of the first sale to Charterhouse and Softbank.
Interliant says the support from two of its biggest investors is significant. The company says the new funds will place it in a good position to execute the next stages of its strategic plan.