April 1, 2002 -- Miami-based carrier hotel developer Terremark Worldwide, Inc. said today that a group of company insiders and longtime investors will pay $7.5 million to purchase Terremark's common stock at 75 cents a share - a 50 percent premium over the current market price of the shares.
Miami-based Terremark is best known as operator of the NAP of the Americas, a Tier 1 network access point housed in the 750,000 square foot Technology Center of the Americas (TECOTA) in downtown Miami.
The building's other anchor tenant is Global Crossing, which occupies 120,000 square feet but is currently in bankruptcy.
Terremark called the new investment a vote of confidence in the company's future.
"By agreeing to purchase Terremark's common stock at $0.75 per share, those who know our company are telling the world that they think Terremark's stock is significantly undervalued and that they have confidence in the company and its business model," said Manuel D. Medina, Chairman and CEO of Terremark Worldwide.
In morning trading, Terremark stock was trading at 46 cents a share on the American Stock Exchange.
Last June, the company borrowed $11.5 million from its management team, including a $10 million unsecured loan from an unnamed executive and shareholder. The cash helped Terremark continue to operate while it arranged for $48 million in bank financing.