NORFOLK, Va., July 13 /PRNewswire-FirstCall/ -- Waterside Capital
Corporation (Nasdaq: WSCC) announced that one of its clients, Fairfax
Publishing Company, bought back its 18% warrant for a negotiated price of
$500,000, and has successfully exited the investment.
It marks the second time in less than a month that the region's only
SBIC has successfully concluded a profitable investment. Last month,
Waterside exited an eight-year investment with AnswerNet by selling back
its remaining 1% warrant. AnswerNet is a leading telecommunications company
headquartered in New Jersey.
Waterside president Martin Speroni said, "It's very rewarding to see a
company like Fairfax Publishing use venture capital to grow faster than its
internal cash-flow-generating capacity would have allowed and become a
relevant and profitable business."
Waterside invested a total of $1.75 million in Fairfax Publishing. The
first advance came in 1999, one year after Fairfax Publishing opened for
business. The capital was used to launch "The Senior Source" magazine in
Hampton Roads and Central Virginia.
A second investment allowed Fairfax Publishing to acquire five
magazines in North and South Carolina, now called "The Senior Living
In accordance with the agreement, Waterside's investment was repaid in
full, including fees and periodic dividends.
"Waterside Capital was instrumental in moving us forward," says Bob
O'Malley, president & CEO of Fairfax Publishing Company. "They were
straight forward, understood our business, and brought good business sense
to the table -- not just money. They also helped us with the acquisition
evaluation for the five magazines in the Carolinas."
Leaders from both companies are available for comment at:
Martin Speroni, President, Waterside Capital Corporation
(757) 626-1111 ext. 302 or firstname.lastname@example.org
Bob O'Malley, President & CEO, Fairfax Publishing Company
703-421-2003 or email@example.com
Waterside Capital Corporation (http://www.watersidecapital.com) is a
Small Business Investment Company (SBIC), headquartered in Norfolk,
Virginia with a portfolio of approximately $28.3 million of loans and
investments in 19 companies located primarily in the Mid-Atlantic region.
Waterside Capital's individual investments range from $500,000 to over $3
Fairfax Publish Company is headquartered in Fairfax, Virginia, and
addresses senior housing and related services through magazines in
Virginia, North and South Carolina, and Florida, and an interactive website
SOURCE Waterside Capital Corporation