Wam!Net Says Funding Very Likely, Letter of Intent Signed with Investor
Press release from the issuing company
6/26/01 (WhatTheyThink.com) On the heels of a 25% staff reduction last week, Wam!Net has told WhatTheyThink.com that the move was one of the final steps to meeting the conditions needed to secure funding in July. Wam!Net spokesman, Jason Thunstrom told WhatTheyThink.com yesterday that the company was not just being optimistic, but that a letter of intent had already been signed.
“A deal is never done until its done. Having said that, we have worked very hard to work through the conditions needed to meet the requirements set forth by this potential investor,” said Thunstrom. WhatTheyThink.com reported over the weekend the circumstances and possible ramifications of not closing the deal. “Certainly we need to close this financing in order to continue on our path to profitability. This process with this investor has been ongoing for quite some time. The days of ‘drive-by venture capital’ are over and this investor will commit more than just a few dollars.” Thunstrom said the financing will be significant and should help the company continue to expand in key industry segments.
“Our strategy has been to focus on the main areas of our business - the media, graphic arts and government. In fact, the government division where we are a first tier partner in a $6.9 billion government contract, we are hiring for some 40 positions.” Thunstrom said the reduction in staff will not affect their marketing strategy and the cuts were pretty even across the board. “We shifted from a hunter mentality to a farming mindset a while back. We are going deeper into our accounts and still meeting revenue targets by growing these relationships.”
WAM!NET is a global provider of information technology and digital media solutions. WAM!NET's services, which include managed network, data storage, hosting and application services, are delivered in a utility-like model via the company's highly integrated IT platform, enabling commercial and government customers to access the combination of IT services they need on a transactional basis. In doing so, customers are united with their community of interest, which collaborates to specify, create, print, store, broadcast and distribute content within WAM!NET's online, secure digital environment.
Headquartered in Eagan, Minnesota, WAM!NET commenced operations in 1995. The company has approximately 17,000 corporate end users of its e-services worldwide. WAM!NET services are available throughout North America, Europe, Singapore, Japan and Australia. For information on the company, call 800-611-9006, or visit WAM!NET's Web site at www.wamnet.com.
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