RE: Anyone know.......the rock.....First, let me say that this is getting extremely lazy on your part. You knew there was a PR on the 35 mill, but didn't bother to check it.
I'm only posting this for the sake of newbies.
The answer to your 2 part Q is YES and YES.
I still don't know how to highlite or anything on SH( maybe someone could clue me in), so I've posted the whole PR, and also extracted the 2 relevant pieces.
1)"The financing will enable a partnership controlled by Wavve to purchase the building that houses Wavve's Sacramento II Internet Data Center and complete its construction."
2)"This financing represents a dramatic reduction in our on-going capital requirements and is sufficient to settle all current corporate payables, as well as sustain the Company's operations and development efforts"
WAVVE™ SECURES FINANCING
Wavve and leading Wall Street lender to finance Wavve's existing and future Data Center operations
Sacramento, Calif. – January 4, 2001 – Wavve Telecommunications, Inc. (CDNX: WV) today announced that it has secured a commitment for an estimated $35 million in financing from Capital Lease Funding (CLF), a New York-based Real Estate lender. The financing will enable a partnership controlled by Wavve to purchase the building that houses Wavve's Sacramento II Internet Data Center and complete its construction.
"We are obviously thrilled about closing this unique financing arrangement. Not only does it provide us with immediate cash, it does so without diluting our shareholder's equity. What is even more exciting, however, is our belief that CLF will be a continuing financing source to fund the build-out of additional Data Centers that we can substantially occupy with credit-rated tenants," said Bob Ingraham, Wavve's President and COO.
"We chose to work with Wavve because we are impressed by its business plan and its robust product offering as well as its ability to secure credit-rated tenants. We look forward to working with Wavve's management team to explore additional opportunities to fund future Data Center facilities," said Bill Pollert, Capital Lease Funding's president and CEO.
Wavve secured the deal with CLF by restructuring its existing contract with its premier anchor tenant. Under the new deal, the tenant has agreed to exercise its option to lease an additional 10,000 square feet provided for in the original contract by December 31, 2001. In addition to the revenue flowing from the Data Center space through the partnership, Wavve will retain all revenue directly related to Data Center services and continue to manage all Data Center facilities and operations.
"This financing represents a dramatic reduction in our on-going capital requirements and is sufficient to settle all current corporate payables, as well as sustain the Company's operations and development efforts. Moreover, it allows us to focus on other important areas of our business including expansion of our current product line and marketing and sales efforts. With capital so scarce in our industry today, we believe that this innovative funding structure will become the benchmark in the industry as an alternative to fund and offset Data Center construction expenditures," added Ingraham.
The Company finalized the transaction on December 29, 2000 and received a partial distribution of proceeds. The transaction will be reflected in the company's Fourth Quarter 2000 financial statements.