Latest Press Releases & SEC Filings
HOUSTON, TEXAS, October 23, 2007 - Internet America, Inc. (OTC Bulletin Board: GEEK, a Houston-based provider of Internet access services, today announced that it has increased its equity capital by approximately $2.5 million through the issuance of approximately $1.7 million of Series A Preferred Stock and the issuance of approximately $800,000 of Common Stock. The issuance of the Common Stock is expected to occur upon the settlement of the TeleShare escrow, currently scheduled on or about October 25, 2007.
The Company filed a Form 8-K with the Securities and Exchange Commission that includes the form of Purchase Agreement, Registration Rights Agreement and Statement of Resolution under which the Company issued 2,889,076 shares of Series A Preferred Stock at $0.586 per share with a 10% annual dividend. Full details and terms of the Series A Preferred Stock can be found in the Company’s 8-K on it’s website or as filed with the SEC. The terms of the preferred include conversion into common on a share-for-share basis and “piggy-back” registration rights.
William E. Ladin, Jr., Chief Executive Officer said, “The increase in capital will allow us to move forward on receiving final approval from the Department of Agriculture Rural Utilities Service (“RUS”) for a $4 million borrowing facility and allow us to continue our active growth and acquisition strategy. We believe that having expanded access to lower rate RUS debt, coupled with the proceeds generated from the issuance of the Series A Preferred Stock, significantly improves our liquidity and enables us to effectively pursue our growth initiatives.”
About Internet America
Internet America is a leading Internet service provider serving the Texas market. Based in Houston, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access. Internet America provides customers a wide range of related value-added services, including Fax2email, online backup and storage solutions, parental control software, and global roaming solutions. Internet America focuses on the speed and quality of its Internet services and its commitment to providing excellent customer care. Additional information on Internet America is available on the Company’s web site at http://www.internetamerica.com.
Use of Non-GAAP Financial Measures
In this press release, the Company refers to a non-GAAP financial measure called EBITDA because of management’s belief that this measure is a financial indicator of the Company’s ability to internally generate operating funds. Management also believes that this non-GAAP financial measure is useful information to investors because it is widely used by professional research analysts in the valuation and investment recommendations of companies in the Company’s peer group. EBITDA should not be considered an alternative to net income, as defined by GAAP.