Towerstream stock sale earns $38.8 million

MIDDLETOWN – Internet service provider Towerstream Corp. reported $41.4 million in total revenue and $38.8 million in net proceeds from its sale of more than 10 million common stock shares ending July 20.
Towerstream plans to spend the revenue on expansion and its Wi-Fi network.
The stocks were sold at $4 per share. After selling 9 million shares, Towerstream used an over-allotment option July 15 to sell an additional 1.35 million shares. After the extra shares were sold, Towerstream’s net proceeds exceeded its initial revenue prediction by nearly 8 percent.
Towerstream’s initial public offering of 10 million shares in 2007 also sold at $4 per share. Since then, Towerstream has completed two public offerings.
Towerstream suffered a $1.5 million net loss during the first quarter of 2011.
For Towerstream’s most recent public offerings, Lazard Capital Markets LLC and Rodman & Renshaw, LLC were joint book-running managers. The offering was co-managed by Merriman Capital, Inc.