ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, January 4, 1997 TAG: 9701060011
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
DATELINE: BLACKSBURG
SOURCE: MARK CLOTHIER STAFF WRITER
Shareholders this week approved the sale of NRVnet to Tennessee-based U.S. Internet Technologies.
Under the deal, first announced in November, U.S. Internet Technologies bought NRVnet for $296,750, according to the purchase agreement distributed to shareholders. Most of the payment was through assumption of the Blacksburg company's estimated $250,000 debt with the National Bank of Blacksburg. The rest of the payment will be in U.S. Internet stock.
NRVnet President Ted Hudson declined comment this week.
The shareholders' vote at a meeting Monday was the second attempt to approve the sale. Some shareholders protested a proposed vote at a Nov. 27 meeting because the vote had not been mentioned in the letter announcing the meeting. The shareholders said state law requires that information be in the meeting notification. A spokeswoman with the State Corporation Commission said she could not comment on the relevant portion of the law.
The vote at Monday's meeting was protested by at least one of the shareholders because company officials didn't give the 25-day advance notice of the meeting as required by state law. Company officials also refused to allow proxy votes, according to a notice of the meeting sent to stockholders by Hudson.
Specifically, the terms of the sale were that U.S. Internet Technologies was to pay $150 for each of NRVnet's 1,970 dial-up Internet-access customers and $250 for the five dedicated Internet access accounts that signed with the Tennessee company and stayed for 90 days, according to the sale contract shared with stockholders. Customers had until Dec. 1 to sign with U.S. Internet Technologies or choose another provider.
Incorporated in November 1995, NRVnet was one of the New River Valley's first locally owned Internet-access providers that started up before the Blacksburg Electronic Village stopped providing low-cost service for nonuniversity customers in July. The company experienced billing and service problems from the start.
LENGTH: Short : 44 linesby CNB