RMI.NET Poised to Succeed as Leading Commerce Solutions Provider in 2000
DENVER, Dec. 8 /PRNewswire/ -- RMI.NET, Inc. (Nasdaq: RMII), a national
e-business and convergent communications company, announced today it has
received an equity investment of $10 million in gross proceeds through a
private placement.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990628/RMILOGO )
The investment represents a purchase for cash of approximately 760,000
shares of common stock, and the right to exercise warrants on approximately
180,000 shares of common stock at a 120 percent premium over the common share
purchase price.
Douglas H. Hanson, chairman and chief executive officer for RMI.NET, noted
that the investment -- by two institutional holders -- provides immediate
working capital, funds internal growth and allows the company to proceed
unimpeded with its business strategy for the next 18 months. The company now
has approximately 19.6 million shares of common stock outstanding.
"This equity investment is indicative of the confidence that the
investment community has in the growth potential and inherent value of
RMI.NET," Hanson said. "The investment represents sufficient capital to fund
operations for the year 2000, and complements additional capital resources
related to the funding of our network expansion and regional growth."
Hanson noted that RMI.NET primarily would use the investment to ramp up
its nationwide sales and marketing effort, fund day-to-day operations and fuel
organic growth. He also noted it was significant that the company received
the funding without having to service additional debt.
"We strongly believe that RMI.NET will be a significant player in the
Internet community as it continues to pursue its stated business strategy, and
develop products and services that enable its small and medium-sized business
customers to be successful," said Christopher Purrier, managing director with
Seattle-based Genesee Investments, which negotiated the equity investment for
RMI.NET and the two institutional holders.
RMI.NET recently passed the 100,000-customer mark nationwide. It provides
e-commerce applications, such as its e-SELL(R) suite of transactional Internet
commerce software; web solutions, including design, hosting and marketing; and
high-speed Internet access, such as digital subscriber line (DSL) service.
RMI.NET also has negotiated a number of partnership agreements that will
allow it to succeed with its business strategy. It recently announced
partnerships with Enron Communications, a subsidiary of Enron Corp.
(NYSE: ENE), to provide television-quality streaming video and video
conferencing over the Internet; Efficient Networks, Inc. (Nasdaq: EFNT) for
DSL customer premise equipment; and NetObjects, Inc. (Nasdaq: NETO) to provide
e-commerce solutions.
Denver-based RMI.NET, Inc., formerly Rocky Mountain Internet, is a
national commerce solutions provider focusing on e-commerce and convergent
communications. 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 annualized
revenue run rate of $47 million and more than 107,000 nationwide customers.
The company wholly owns a proprietary portal site and search engine,
Infohiway, at http://www.infohiway.com. For more information on RMI.NET, call
(800) 864-4327, or visit the company's web site at http://www.rmi.net.
This press release might contain forward-looking statements. These
forward-looking statements are subject to risks and uncertainties. Actual
results may differ materially from such forward-looking statements as a result
of risks and uncertainties, which are described in the cautionary statements
section of the company's 10K dated December 31, 1998, and may include other
risks described in all Securities and Exchange Commission filings submitted as
of 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
Company News On-Call:
http://www.prnewswire.com/comp/139760.html or fax,
800-758-5804, ext. 139760
CONTACT:
Mark Stutz, Manager, Media Relations,
303-313-0672, mark.stutz@corp.rmi.net, or Steven P. Eschbach,
CFA, Vice President, Investor Relations, 303-308-2272,
steve.eschbach@corp.rmi.net, both of RMI.NET, Inc.
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