Financial Flexibility Enhanced on the Course to Profitability
DENVER, Aug. 7 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
e-commerce/Web solutions and connectivity company, announced today that its
$30 million S-3 shelf registration filed with the Securities and Exchange
Commission (SEC) on July 24, 2000 has become effective.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
"We are extremely pleased with the quick approval from the SEC for this
shelf registration," said Douglas H. Hanson, Chairman and CEO of RMI.NET.
"This provide us with additional financing flexibility as we approach our
EBITDA breakeven target in December of this year."
The Company implemented a five-point strategic action plan to achieve
profitability by reducing expenses, growing revenue organically, increasing
customer retention, developing market driven products and the upgrade of its
network. RMI.NET has already announced significant steps in the
implementation of its plan.
The SEC approved shelf registration statement gives RMI.NET the
flexibility of offering from time to time up to $30 million in any combination
of debt, preferred stock and common stock. The securities may be offered
separately, in series, or together in any combination.
RMI.NET announced in May 2000 that it secured a $12 million revolving line
of credit with RFC Capital. This approved shelf registration gives the
Company the opportunity to pursue a number of financing alternatives to
supplement the credit line to fund its operations and other corporate
purposes.
About RMI.NET
Denver-based RMI.NET, Inc. is a national e-commerce/Web solutions and
connectivity company focusing on solutions for small and medium-sized
businesses. The Company specializes in e-business applications; Web
solutions, including design, hosting and marketing; and high-speed Internet
access, including digital subscriber line (DSL). RMI.NET has an approximate
annualized revenue run rate of $50 million and more than 100,000 nationwide
customers. The Company wholly owns a shopping, e-commerce and portal site,
http://www.webzone.com, which includes the proprietary search engine, Infohiway. For
more information, call (800) 411-6066, or visit RMI.NET's web site at
http://www.rmi.net.
This press release may contain forward-looking statements within the scope
of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Although the company believes these statements are based on reasonable
assumptions, it can give no assurance that its goals will be achieved.
Differences between assumed facts and actual results can be material depending
on the circumstances and investors should be aware of the important factors
that could have a material impact on future results. Please refer to the
company's cautionary statements section of RMI.NET's 10-K dated December 31,
1999 and other Securities and Exchange Commission (SEC) filings subsequent to
this date.
SOURCE RMI.NET, Inc.
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Related links:
http://www.rmi.net
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Steven P. Eschbach, CFA, Vice President -
Investor Relations of RMI.NET, Inc., 303-308-2272,
steve.eschbach@corp.rmi.net
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