Internet service provider MindSpring Enterprises Inc has filed with the Securities and Exchange Commission to raise up to $111m in an offering of 1.65 million shares of common stock. 1.0 million will be offered by the company, which will raise up to $64.7m – after expenses – with the other 650,000 being sold by stockholders. The net proceeds to the company will be used to expand its national network, increase marketing activities and for possible acquisitions of business and subscriber accounts. MindSpring says its expansion plans will continue to center around a hybrid network strategy of owning points of presence in mature markets it can cost-effectively deliver access services and leasing POPs and capacity from third-party network service providers in new or developing markets. It weighs the benefits of building or leasing in each market, allowing to modify its cost structure on a market-by-market basis. As of March 31, MindSpring says roughly 77% of its subscribers accessed the network through a company-owned POP. The share offering, which is expected to be completed in June, will take the total number of shares outstanding to 8.6 million.
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