Artesian Direct may get infusion of $5 million
Tom Sowa - Staff writer
Liberty Lake-based Artesian Direct announced Tuesday that a Midwest investment group is providing up to $5 million in financing to help the company expand its business operations.
The money is coming in two chunks, said Artesian Direct CEO Cris Hollingsworth.
A "significant amount of money" has been given to Artesian Direct now. The rest will be invested as the company reaches target figures for sales and revenue, he said.
Artesian Direct distributes a set of home and business Internet appliances that give customers simple, one-box delivery of information and video entertainment services. Those devices can be used for video on demand or high-definition digital TV.
In return for the investment, the Midwest company is acquiring equity in Artesian Direct, a privately held company. Hollingsworth did not disclose what share the investors acquired.
The investment means Artesian Direct "can get much more aggressive in expanding our operations," said Hollingsworth. He anticipates doubling the number of employees by the end of the year, from about 18 now to around 40.
Disclosure of the investment group's name will follow a review of the agreement by attorneys and Securities and Exchange Commission officials.
"The main concern expressed to us by our own legal counsel is to make sure there are no conflicts of interest," said Hollingsworth.
He said the investment group has significant holdings in several major publicly traded companies.
Artesian also announced plans to form a strategic partnership with Celerity Systems, an East Coast company also distributing its own line of high-end set-top boxes and Internet appliances.
Under a plan that won't be finalized until late August, Artesian Direct will purchase shares in Celerity, based in Knoxville, Tenn.
In return, Artesian Direct gets exclusive rights to sell Celerity products in some areas of the Northwest, plus preferential pricing on those devices.
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