IN THE NEWS
State of Maryland Makes Equity Investment in TeleContinuity, Inc.
May 1, 2004 Rockville, MD -- Believing that TeleContinuity, Inc.'s disaster-proof, survivable backup telecommunications network will prove a strong and important business to the State of Maryland as well as the Federal Government, The State of Maryland's Department of Business and Economic Development has taken the opportunity to convert its previous $50,000 Challenge Grant startup business loan into an equity position during the company's $2.6 million Series A financing round just concluded in May 2004. The State of Maryland's Challenge Grant program is designed to assist qualified startup companies to establish themselves in Maryland by alleviating some of the early financial difficulties of young companies with very strong commercial potential. The total potential Challenge Grant funding is $150,000, available over time in $50,000 increments. TeleContinuity, Inc. received its first payment from the State of $50,000 but was able to quickly over subscribe its Series A round. Under the terms of the Grant, TeleContinuity could either pay back the State's investment or the State had the option of converting the grant/loan into an equity investment in TeleContinuity. The Department of Business and Economic Development believed that the direction TeleContinuity was taking and the history of operations strongly indicated that conversion into equity in the company would be in the best interests of the State of Maryland. "TeleContinuity appreciates the confidence expressed by the State of Maryland in the company's technology and current operating model and looks forward to working with the State in developing Maryland as a worldwide center in the telecommunications disaster recovery industry," said Roy Pinchot, CEO of TeleContinuity, Inc.
Contact for Information:
Roy Pinchot
Chief Executive Officer
Tel: (240) 453-6235
Email: rpinchot@telecontinuity.com