Senior Management Led | Transactions

$23,000,000 Private Placement of Convertible Preferred Stock

AWS Convergence Technologies, Inc. partners with a network of TV broadcasters in more than 100 US cities and more than 8,000 schools nationwide to collect proprietary weather information. AWS delivers local weather information over the Internet with its WeatherBug application to millions of users. The company also used its proprietary weather information to provide important information to the energy industry and the U.S. government for homeland security.

Outcome Capital has been involved with AWS since 1998 when we began advising AWS on the conversion of its largely equipment driven strategy into an Internet content driven strategy. Outcome Capital’s partners also made an investment in the company and agreed to serve on its Board. In late 1999, Outcome Capital was engaged to raise capital for AWS to more aggressively expand operations and retire a significant shareholder. Outcome Capital privately placed $15 million of Series A Preferred Stock with an investor group led by HarbourVest of Boston. Outcome Capital’s first private equity fund co-invested with HarbourVest.

In 2002, Outcome Capital placed $3 million of subordinated debt for AWS with Allegiance Capital of Baltimore. The subordinated debt provided necessary working capital for the expansion of the WeatherBug product with a minimum of dilution. In 2004, Outcome Capital advised AWS on the placement of $23 million of preferred equity from Sequoia and Polaris. Outcome Capital has advised AWS exclusively on its capital structure since 1998.