SoftNet Systems Inc, the Mountain View California cable internet access company, is making good on its promise to raise large amounts of money to roll out its ISP Channel service after retaining the services of Bear, Sterns & Co (CI No 3,403). The company announced that it has raised $10m through a private equity placement on May 28. The placement consisted of 10,000 shares of convertible preferred stock, together with warrants to purchase 200,000 shares of common stock at $13.75 per share. SoftNet also announced that, subject to market and other conditions, it also plans to raise up to $150m through the issue and private placement of units to qualified institutional buyers. Each unit is expected to consist of one note and one warrant to purchase shares of the company’s common stock. The interest rate on the notes and the number of shares covered by each warrant will not be determined until the offering is completed. SoftNet expects the offering to close this summer. The company – which offers business-to-business internet services including access and web development – had said previously it needed a lot of money to roll out its cable ISP Channel, which it describes as an @Home Networks-type branded program for cable operators. It doesn’t figure to get all the money it needs in one fell swoop and hopes that after the roll-out of the service, it can use revenue from customer wins to fuel expansion.
