Utility To Invest $55 Million In DualStar
The investment will include the purchase of about 10.5 million shares of newly-issued convertible preferred stock of DualStar at $5.25 per share, pending stockholder approval. It is anticipated that Exelon will own nearly 26 percent of the issued DualStar stock when the transaction is closed.
Exelon would also be entitled to designate a majority of the DualStar board of directors, and the companies would eventually enter into a series of alliances.
In other DualStar investment news, Blackacre Capital Management has entered into a letter of intent to provide for a $20 million investment. Pending approval, Blackacre will purchase 5 million shares of convertible preferred stock at $4 per share, and it will have the right to designate one member to the DualStar board of directors.
The proceeds of the investments will ultimately be used as general working capital for New York-based DualStar's implementation of a nationwide broadband access service business by DualStar Communications Inc., a wholly owned subsidiary of the company.