Friday, September 01, 2006

Show me the money!

The last month has been spent mostly exploring funding options. As we are a fully SEC compliant company but still in our pre-IPO phase there are several options (none of which exclude the other). There is also the issue of short term funding and long term funding. Short term funding will allow us to keep operating and develop our businessplan while being able to pay all overheads while the long term funding is geared for the expansion of our network.
For our long term funding we are exploring different avenues. There is the obvious funding that will come from our shares selling on the OTC/BB when trading starts. Apart from that we are currenlty talking to a few "investment boutiques", dealmakers and VC's. The issue is that every possible investor that you talk to has a different take on the industry and has their own agenda. We have the benefit that being a publicly trading company which gives investors an easy exit strategy. The downside of this (at the moment) is that in order to stay compliant we have to go through a huge amount of filing and reporting which in turn results in large lawyer, accountant & auditor fees. Money spent without any direct return basically...
Than there is also the fact that the operational targets of the company do not always comply with the shareholders short term interest. While our longer term plants will certainly result in a highly profitable company with a large ROI for investors it also means that for the next few years we will have to invest a quite substantial amount of money. There are other options being discussed wich will lead to a very short term ROI for our shareholders. One of the options being looked at is the possibility of a so-called "reverse merger". This would entail us merging with an existing company with revenue & assets that wants to become a listed company. It will give such a company a fast-track to listed status thereby saving them a huge amount of time and money. They will then end up taking control of the Wimax EU "vehicle" but our current shareholders will end up holding shares that will be of a substantially higher value than they are now...

In the meantime, while we are looking into all options, I am still working hard at building the company. Our ditribution-right for Ruckus seemed to be secured, more locations will be secured in the next few weeks and a lot of work is being done on the development of our portal site and location based services.

We are also busy looking for suitable M&A targets to facilitate our expansion across Europe. In the case of anyone reading this blog might be aware of any suitable targets I will list our requirements:
Targets have to already operate in the (W)ISP, hosting, telecom or related areas.
"Targets" have to meet the all (or most) of the following requirements:

1. Desire to go public
2. Ownership in the hands of a few to reduce naysayers.
3. Have customers.
4. Have some cash
5. Clean books.
6. Awake management.
7. Large or small, doesn't matter.
8. Need liquidity.

Finders fee paid out if deal happens. Cash or Shares.


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