corporate-ir.net
In the North American market, we sell directly to cable operators such as Charter Communications, Cox Communications, Prime Cable and TCI, and to system integrators such as HSAnet. Internationally, we sell to systems integrators, including Philips and Siemens, which in turn sell to cable operators.
From a recent HSA SEC filing, you'll find reference to Time Warner:
We have approximately 3,900 high speed cable modem end users and
approximately 3,400 dial-up end users. Approximately 1,506, or 39.0% of our high speed cable modem end users and approximately 290, or 8.5% of our dial-up end users are from cable systems affiliated with Charter.
Cisco Systems, Inc. Cisco, one of our major equipment suppliers, has agreed to purchase $7.5 million of our common stock at the initial public offering price, net of the underwriting discount, concurrently with this offering.
Road Runner. We recently signed a non-binding letter of intent with
ServiceCo LLC, the entity that provides Road Runner's cable Internet access and content aggregation service. Under the letter of intent, we and ServiceCo have agreed to negotiate in good faith toward an agreement under which we would provide our service as a Road Runner subcontractor to cable systems we jointly designate to receive our services. In addition to the revenue split we would share with ServiceCo and the cable operator, we would grant ServiceCo warrants
to purchase one share of our common stock at a price of $5 per share for each home passed that we jointly designate to receive our services, up to a maximum of 5 million shares. Additionally, ServiceCo would be entitled to provide its Road Runner content in the designated systems.
Microsoft. We have a non-binding letter of intent with Microsoft
Corporation covering a number of potential areas of strategic relationship. No assurance can be given that we will sign a definitive agreement with Microsoft for any or all of the items of strategic relationship or that a definitive agreement will be of material benefit to us. Microsoft has agreed to assist us in marketing HSA services to multiple system cable operators. We also issued a warrant to Microsoft to purchase 250,000 shares of common stock at 125% of the initial public offering price, exercisable until May 2004. This warrant will provide Microsoft the right to purchase one additional share of our common stock for each additional 10 homes passed above 2.5 million homes Comcast Corp. commits to us by May 1, 2002. Microsoft has agreed to purchase $10 million of our common stock concurrently with the offering at the initial public offering
price per share, net of the underwriting discount.
National Cable Television Cooperative. We recently signed an agreement with the National Cable Television Cooperative, an organization which represents over 950 multiple system operators with approximately 10 million cable customers in all 50 states. Under the agreement, cable operators who are members of the cooperative will have the ability to take and offer our services to their subscribers under standardized terms and conditions.
Vulcan Ventures. Vulcan Ventures, which owns Charter, beneficially owns 54.2% of our common stock before the offering. Charter is one of the ten largest cable system operator in the United States. Charter has already committed to us approximately 765,000 homes passed. We granted Vulcan warrants to purchase up to 7.75 million shares of our common stock for $3.23 per share. These warrants, which Vulcan has assigned to Charter, become exercisable at the rate of 1.55
shares of common stock per home passed committed to us by Charter in excess of 750,000.
Com21, Inc. Com21, one of our major equipment suppliers, has agreed to
purchase $1.0 million of our common stock at the initial public offering price, net of the underwriting discount, concurrently with the offering.
sec.gov
We recently entered into a non-binding letter of intent with ServiceCo LLC, the entity that provides Road Runner's cable Internet access and content aggregation services, and we and ServiceCo are currently in the process of negotiating a definitive agreement. ServiceCo is a joint venture among affiliates of Time Warner, Inc., MediaOne Group, Inc., Microsoft Corporation, Compaq Corp. and Advance/Newhouse. This letter of intent contemplates that we
will provide our services to cable systems designated by ServiceCo and us, and enter into a revenue sharing arrangement among HSA, ServiceCo and the cable operator. We also would grant ServiceCo a warrant to purchase one share of common stock at a price of $5 per share for each home passed that we jointly designate to receive our services, up to a maximum of 5 million homes. In addition, ServiceCo would be entitled to provide Road Runner content in these designated systems. |
