With cash reserves understood to be hovering around $4.5 million, that gives Peakhour about five months before it runs out of money. While the promise of such a return is incentive enough for the investors to push for a deal, it is understood the possibility of Peakhour running out of cash was also a concern.Īlready, Peakhour has taken $58million from VC's purses and, according to sources close to the company, it is still burning cash at a rate of about $830,000 a month. In return for contributing to the $6.25 million round last September, TVG and TVP, along with other major contributor the Australasian Media and Communications Fund, received a preferential right to a return of four times their investment in the event of any liquidity exercise. TVG and TVP, whose executives fill three of the five board positions at Peakhour, were also major contributors to Peakhour's third and latest capital raising. The changes at Peakhour are believed to be the result of a nine-month restructuring, mandated by venture capital investors Telecom Venture Group, Technology Venture Partners and Gresham CEA Management. But he said Pihana had secured a partnership with American managed service provider SiteLite. Pihana country general manager Doug Oates yesterday declined to discuss a relationship with Peakhour. The new strategic partnership would represent the first move in a series that would see Peakhour eventually execute a liquidity event and return some capital to long-suffering shareholders. It's understood Fujitsu, which purchased the North Ryde data centre from failed internet application hosting company Exodus in April this year, is charging Peakhour too much to use the centre and is not prepared to push Peakhour's new managed services offering to clients.Īs a result, Peakhour is expected to form a relationship with Pihana, which has seven data centres worldwide, including one in Sydney. The web services firm, run by former McKinsey consultant David Harrington, is believed to be close to ditching current data centre provider Fujitsu Australia in favour of Hawaiian group Pihana Pacific. It has taken almost $60 million, 21/2years, a major restructure and a complete management change but, pushed by investors whose patience had worn thin, Peakhour looks to finally be taking some steps to realise shareholder value.
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