0001644516-15-000004.txt : 20190312
0001644516-15-000004.hdr.sgml : 20190312
20150930155044
ACCESSION NUMBER: 0001644516-15-000004
CONFORMED SUBMISSION TYPE: 1-A/A
PUBLIC DOCUMENT COUNT: 8
FILED AS OF DATE: 20150930
DATE AS OF CHANGE: 20181220
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Mid-Hudson Broadband Co
CENTRAL INDEX KEY: 0001644516
STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812]
IRS NUMBER: 463895918
STATE OF INCORPORATION: NY
FILING VALUES:
FORM TYPE: 1-A/A
SEC ACT: 1933 Act
SEC FILE NUMBER: 024-10459
FILM NUMBER: 151133689
BUSINESS ADDRESS:
STREET 1: 1050 CONNECTICUT AVE., NW
STREET 2: SUITE 500
CITY: WASHINGTON
STATE: DC
ZIP: 20036
BUSINESS PHONE: 202-236-3427
MAIL ADDRESS:
STREET 1: 1050 CONNECTICUT AVE., NW
STREET 2: SUITE 500
CITY: WASHINGTON
STATE: DC
ZIP: 20036
1-A/A
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Mid-Hudson Broadband Co
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1050 CONNECTICUT AVE., NW
10TH FLOOR
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202-321-7969
Tony Ramos
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Mid-Hudson Region Rural Broadband Company, Inc.
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58823 to shareholders for services. For the full list of shareholders and an explanation of services, please see pp. 14-23 of the Second Amended Offering Statement that has been uploaded this day with this Form 1-A.
Regulation A, as amended
PART II AND III
3
mhrrbc2ndamendoffstmt.txt
SECOND AMENDED OFFERING STATEMENT
SECOND AMENDED REGULATION A, AS AMENDED - OFFERING STATEMENT UNDER THE
SECURITIES ACT OF 1933
JOBS Act / REGULATION A, AS AMENDED
MID-HUDSON REGION RURAL BROADBAND COMPANY, INC. (MHRRBC)
Issuing Company: Mid-Hudson Region Rural Broadband Company, Inc.
Issuer & Agent for Service of Process: Tony Ramos, President
Mid-Hudson Region Rural Broadband Company, Inc.
1050 Connecticut Ave., NW
10th floor
Washington, D.C. 20036
202-321-7969
tramos@urbroadband.com
IRS EIN # 46-3895918
CLASSIFICATION CODE NUMBER: 522220
An offering that is filed with the Securities and Exchange Commission of the
United States Government with the filing of Form 1-A, as amended, effective
June 19, 2015. Amended on August 15, 2015, in reply to the Commission's
letter of July 24, 2015.
Amended on September 17, 2015, in reply to the Commission's letter of
August 25, 2015.
TABLE OF CONTENTS - PER FORM 1-A, AS AMENDED BY NEW REG. A
TABLE OF CONTENTS.....................................................i-ii
ITEM 1. SIGNIFICANT PARTIES LIST......................................1-5
ITEM 2. APPLICATION OF RULE 262.......................................6-10(1)
ITEM 3. AFFILIATE SALES...............................................10
ITEM 4. JURISDICTIONS IN WHICH SECURITIES ARE TO BE OFFERED...........10-11
ITEM 5. UNREGISTERED SECURITIES ISSUED OR SOLD WITHIN ONE YEAR........11-24
ITEM 6. OTHER PRESENT OR PROPOSED OFFERINGS...........................24(2)
ITEM 7. MARKETING ARRANGEMENTS........................................24-25
ITEM 8. RELATIONSHIP WITH ISSUER OF EXPERTS NAMED
IN OFFERING STATEMENT................................................25
Footnotes
(1) Amended from original Offering Statement, and corrected per request
to do so by the Commission in the letter of July 24, 2015.
(2) Amended for this Second Amended Offering Statement, in response to
the letter of the Commission of August 25, 2015. Subsections (4)(A)
and (4)(B) have also been added here.
i
ITEM 9. USE OF A SOLICITATION DOCUMENT TO INDICATE
WHETHER OR NOT A PUBLICATION AUTHORIZED BY RULE
254 WAS USED PRIOR TO THE FILING OF THIS NOTIFICATION................26
III. SUPPLEMENTAL INFORMATION AS REQUIRED BY PART
III OF FORM REGULATION A, AS AMENDED.................................26-27
ii
ITEM 1. Significant Parties
List the full names and business and residential addresses, as applicable, for
the following persons:
(a) the issuer's directors:
Tony Ramos, Issuer's Representative & Chairman
Business address:
1050 Connecticut Ave., NW
10th floor
Washington, D.C. 20036
Home address:
1805 Key Blvd.
Apt. 513
Arlington, VA 22201
Marc J. Hagemeier, M.A., Vice Chairman of the Board
Home & business address:
17 Holly Court
Shippensburg, PA 17257
l
Eric W. Will, II
Business address:
Rainier Funding Services, Inc.
101 South Salina Street - Suite 1020
M&T Bank Building
Syracuse, NY 13202
Home address:
7648 Linkside Drive
Manlius, NY 13104
Harriet W. Grifo
Business address:
Cragsmoor Free Library
355 Cragsmoor Rd
Cragsmoor, NY 12420
Home address:
87 Sam's Point Road
PO Box 27
Cragsmoor, NY 12420-0027
2
Gary Horowitz
Business address:
PO Box 268
Ellenville, NY 12428
Home address:
29 Maple Ave.
Ellenville, NY 12429
(b) the issuer's officers:
Tony Ramos, President & Issuer's Representative
Marc J. Hagemeier, M.A., Vice President
Eric W. Will, II, Secretary
Harriet W. Grifo, Treasurer;
(c) the issuer's general partners:
none;
3
(d) record owners of 5 percent or more of any class of the issuer's
equity securities: all shares are common/voting:
Rural Broadband Company, Inc.
Lusosystems, Inc.
(e) beneficial owners of 5 percent or more of any class of the
issuer's equity securities:
same as above;
(f) promoters of the issuer:
other than the Issuer's representative and President, Mr. Ramos, none
as of the filing of this request for pre-approval since there did not
appear to be any promoters marketing themselves to promote this new
Regulation A offering opportunity;
(g) affiliates of the issuer:
none as of the filing of this request for pre-approval since there
did not appear to be any affiliates marketing themselves to promote
this new Regulation A offering opportunity;
4
(h) counsel to the issuer with respect to the proposed offering:
none;
(i) each underwriter with respect to the proposed offering:
none;
(j) the underwriter's directors:
not applicable;
(k) the underwriter's officers:
not applicable;
(l) the underwriter's general partners:
not applicable;
(m) counsel to the underwriter:
not applicable.
5
ITEM 2. Application of Rule 262
(a) State whether any of the persons identified in response to Item 1
are subject to any of the disqualification provisions set forth in
Rule 262:
no;
(b) If any such person is subject to these provisions, provide a full
description including pertinent names, dates and other details, as well
as whether or not an application has been made pursuant to Rule 262 for
a waiver of such disqualification and whether or not such application
has been granted or denied:
not applicable.
(c) Supplement to this Amended Offering Statement, in reply to the
Commission's letter, dated July 24, 2015: correction of inadvertent
error as to the box checked on Item 3 of the online Form 1-A.
Through inadvertence, the applicant checked the second box on this
section.
After discussion with Commission counsel pursuant to the Commission's
letter to which this reply is directed, the applicant has unchecked the
second box.
The Commission's letter, in any event, seeks further information and
clarification with respect to this section.
6
Under 17 CFR 230.262 (a) & (b), for the following reasons, the
applicant has now corrected the inadvertence and declares here that
neither the Issuer, under (a), nor any Issuer's representative or other
persons under (b) are subject to the provisions of this Rule.
As a threshold matter, under (a)(4) there are no matters under a 'court
of competent jurisdiction,' meaning a constitutionally authorized
Article III forum, for which MHRRBC has ever been the subject of any
matter.
Similarly, under (b)(2), for the same reasons, no persons are similarly
subject to Rule 262.
Further, none of the applicant companies have received any contact from
any State Blue Sky enforcement offices, including MHRRBC.
There are no other subparts of (a) or (b), which apply to this matter.
In order to further clarify as to any agency action which may have
occurred in any State, however, the Issuer provides the following
additional information.
Prior to JOBS Act, no persons listed in the Form 1-A filing, had ever
had experience with exempt limited offerings. The only person who is
among the persons listed, who has any previous experience, as a trader,
is Michael D. Lang. Mr. Lang is a veteran banker in Washington, D.C.,
and is also a pioneer of our companies. The companies maintain no bank
accounts at the bank which employs Mr. Lang. As a part of his job,
Mr. Lang is required to be licensed as a securities broker, but he has
never acted in that capacity with respect to the applicant companies.
At some point after the announcement by the Commission of the new rules
for Rule 506 JOBS Act, but before the effective date, in September, 2013,
the Issuer's representative
7
created 'offering statements' and 'private placement memoranda' for the
projected Rule 506 JOBS Act companies. These documents were created for
a company that is not a part of any of the applications currently being
processed here.
In the course of preparing those documents, the Issuer's representative,
through inadvertence, mistakenly showed the announcement date as the
effective date.
During this time period, in a further effort to determine whether
different States had reached any new rules concerning JOBS Act, the
Issuer's representative contacted, essentially, all of the State Blue
Sky Law agency offices on the east coast of the United States, as a
beginning point. This was done only after reviewing the Blue Sky laws
of those States, in detail.
The responses from the Blue Sky law attorneys varied, but one attorney
in the New Jersey office decided to email the attorneys in the other
States. As a part of the review process, the Issuer's representative had
fully disclosed the various States being contacted, to all such attorneys.
In all instances, the process of the Issuer's representative was
identical: he emailed the office to make sure, since JOBS Act rules were
brand new, as to whether, assuming any direct marketing in the State, a
decision that had not yet been made, either marketing material had to be
provided and a fee paid and/or whether actual registration was required
for any particular State.
Among the responses, was a series of emails from a 'securities analyst'
in the Florida securities office. The analyst stated, repeatedly in
emails to the Issuer's representative 'you don't need to file
anything at this point.'
Irrespective of this clear and unequivocal language as contained
in the emails, after the Florida securities office attorney received
the email from the New Jersey securities office attorney, but without
first checking to see if the Issuer's representative had contacted anyone
at the Florida office, the Florida attorney filed an agency action,
seeking both a fine and an order. There was no specific allegation as to
what was the issue.
8
The Issuer's representative, then, removed the case from the agency
process and transferred it to Florida's administrative hearing process,
a non-constitutional forum. The matter proceeded to a hearing, where the
agency called its first witness, an office secretary of the agency. After
failing to survive cross-examination by the Issuer's representative, but
before the analyst who provided the emails to the Issuer's representative
was sworn in, the hearing examiner halted the proceedings, in order to
make inquiry of the attorney for the agency.
By this time, the process had already made clear that there were no
disputed issues of material fact, a requirement for the hearing to
proceed. Thus, the hearing examiner made inquiry of the agency attorney
as to whether there was any dispute that the analyst had sent the
emails to the Issuer's representative, and any dispute as to the factual
accuracy of the emails.
In both instances, the agency attorney replied in the negative.
At that point, the hearing examiner declared that the Issuer and the
Issuer's representative were the prevailing parties, ruled that there
were no disputed issues of material fact, terminated the hearing, and
entered an order indicating such. Under agency rules, the matter returned
to the agency. With no case, the agency attorney, after some wasted
effort on the part of all persons, revealed the discrepancy in the dates
as presented by the Issuer's representative as the sole factual basis
for the matter, withdrew any demands for any fines, withdrew any
penalties, and agreed to settle the matter as indicated, with the
Issuer's representative making any future corrections as to the
effective date.
As the company that was the subject of the matter never went on to become
one of the JOBS Act companies, largely because its project area was too
narrow, no further action exists as to any proceedings.
9
As with the MHRRBC application, as shown by this response letter to the
Commission's letter, inadvertent mistakes can be made. Unlike the State
proceedings, however, the Commission has taken more of a substantive
review process, and has been very generous of the time allowed to make
the replies contained in this letter.
ITEM 3. Affiliate Sales
If any part of the proposed offering involves the resale of securities by
affiliates of the issuer, confirm that the following description does not
apply to the issuer. The issuer has not had a net income from operations
of the character in which the issuer intends to engage for at least one
of its last two fiscal years:
the Issuer confirms this statement.
ITEM 4. Jurisdictions in Which Securities Are to be Offered
(a) List the jurisdiction in which the securities are to be offered by
underwriters, dealers or salespersons:
worldwide;
10
(b) List the jurisdictions in which the securities are to be offered other
than by underwriters, dealers or salesmen and state the method by which
such securities are to be offered:
the securities will be offered by any persons so authorized under the
current Regulation A as applied to JOBS Act rules, including by the
Issuer and any affiliates, and will be offered by all methods
allowable by JOBS Act rules and regulations, including on the
Internet.
ITEM 5. Unregistered Securities Issued or Sold Within One Year
(a) As to any unregistered securities issued by the issuer or any of its
predecessors or affiliated issuers within one year prior to the filing
of this Form 1-A, state:
(1) the name of such issuer: Tony Ramos;
(2) the title and amount of securities issued:
JOBS Act/Rule 506, with form Regulation D filed with the SEC for
588,238 shares, common/voting per Rule 506 rules
(SEC CIK #: 0001579586)(4)(5);
Footnotes
(4) Corrected from Original Offering Statement.
(5) Corrected from Amended Offering Statement. This figure was recalculated
after a more complete review of all shares by a qualified mathematician who
is a Ph.D. candidate in mathematics.
11
(3) the aggregate offering price or other consideration for which
they were issued and basis for computing the amount thereof:
a) per Rule 506, limiting share prices to one price and one
class: $100 per share, based upon computing the amount needed
for project funding(6);
b) as corrected in part (a)(2), above, the issuance of the
588,238 shares of common stock, was for services valued at
$58,823,800.00.
(4) the names and identities of the persons to whom the
securities were issued:
those persons listed in this Offering Statement,
and in addition:
A . Michael D. Lang, registered broker at Wells Fargo;
B. Colleen Ehrhart;
C. Anthony J. Castaldo.
Footnotes
(6) To say again, after this issue was raised in the Commission's letter
of August 25, 2015, prior to JOBS Act, company shares were issued for a
different par value. With the advent of Rule 506 JOBS Act, all Rule 506
rules required compliance. Among those rules, for Rule 506, JOBS Act or
not, are the requirements that shares be sold using only one class, to
eliminate giving founders priority with 'preferred' shares, and that all
shares be sold at one price, which cannot be changed, unless the entire
offering is changed. Thus, whether the shares were issued for 'services'
or 'sold' or provided gratuitously, in any case, the class, common, and
the price, $100 per share, under Rule 506, could not change, or the Rule
506 offering would have to be withdrawn.
12
(4)(A) Supplement to response(7) to subsection (4), preceding this
new subsection - list of all company shareholders:
1 . Tony Ramos
2 . Thomas A. Burke, Esquire
3 . Harriet Woodburne Grifo
4 . Rex R. Helwig
5 . Michael J. Raimondi, M.A.
6 . Lusosystems, Inc.
7 . Gregory P. Ramos
8 . David J. Karre, M.B.A., M.L.S.
9 . Mark J. Hagemeier, M.A.
10 . Mark E. Bayliss
11 . Colleen Ehrhart
12 . Michael D. Lang
13 . Martin E. Washofsky, E.A.
Footnotes
(7) For the purposes of noting all of the shareholders in one list, after the
conference with the Commission pursuant to the Commission letter of
August 25, 2015
13
14 . Gary Horowitz
15 . Eric W. Will, II
16 . Anthony J. Castaldo
(4)(B) Second supplement to response to subsection (4) preceding this
section - shares description:
The Commission's letter of August 25, 2015, in addition, asked the
company to respond as to shares sold vs. 'for services.' As the
Commission knows, however, a ), there is no prohibition by the
Commission with respect to issuing shares gratuitously, and b)
the Commission may not weigh a decision by the company, on the
merits, of any shares issued.
This said, and however, the company notes the contributions of the
shareholders. Prior to this discussion, however, the company takes
this opportunity to note and honor the large group of non-shareholders
who have made significant contributions during the origins and start
up phase of the company. Such persons, citing risk aversion, either
personal or professional, have declined shares, and the company has
no agreement of any sort to provide any sort of compensation or other
remuneration to them. Thus, the 'thank you' here is warranted.
For such non-shareholders, readers may note a large number of
engineers, project developers, project vendors and managers,
economists, CPAs, accountants, lawyers, venture capital experts,
business owners and advisors, political operatives and advisors,
as well as a large group of everyday stakeholders from such diverse
groups as libraries, health companies and job training centers.
14
We thank all of them, and we discuss, seriatim, the contributions of
the shareholders of MHRRBC, listed above in subsection (4)(A):
1. Tony Ramos is the founder of the original group that sought
government procurement funding from H.R. 1, the stimulus bill, as
signed by the President on March 1, 2009. He has expended all of his
time, professionally, full-time from that date to the present, and
has been responsible for the multiple shifts in large strategies of
the business, from government procurement-only, to government
procurement & venture capital seeking, to government
procurement/venture capital - to JOBS Act. Mr. Ramos has derived
no compensation for his efforts, save for, on approximately
August 1, 2015, he began receiving, as the project manager for the
MHRRBC project, from zero to an average of $250.00 per week;
2. Thomas A. Burke, Esquire is one of the founding pioneers of the
original group. His early guidance, when considering his extensive
and successful history of achieving large government procurement
awards for medical technology-related infrastructure and software
applications, allowed for a significant substantive content to our
early government procurement efforts.
He was never paid for any services, other than with shares;
3. Harriet Woodburne Grifo is a library director, who has served, at
no charge, as the community liaison for MHRRBC. Her participation in
the community, particularly in Ulster County, New York, has allowed
the project company to progress, and further, she has become a valued
and trusted officer and director of the companies.
Beginning approximately August 1, 2015, she began receiving $25 per
month from MHRRBC, as the project liaison;
Prior to that time, she received no compensation for any services,
other than with shares;
15
4. Rex R. Helwig is one of the founding pioneers, having attended the
first organizational meeting for the sister company, Southern Tier
Region Rural Broadband Company, Inc. (STRRBC). Mr. Helwig continues
to be extremely active with all of the companies. As the longtime
computer manager of Finger Lakes Library System, Mr. Helwig serves
as one of the technology advisers of all of the companies. His job as
a computer manager allows him to keep current with all things hardware
and software. In addition, Mr. Helwig is the project liaison for one
of the other sister companies, Finger Lakes Region Rural Broadband
Company, Inc. (FLRRBC). Finally, Mr. Helwig has a good grasp on rural
broadband infrastructure offerings, and on items such as pricing and
consumer preference.
Beginning approximately August 1, 2015, he began receiving $25
per week from MHRRBC, as a technology consultant.
In addition, on or about August 1, 2015, he began receiving $25
per week from the parent company, Rural Broadband Company, Inc.
(RBC), as a technology consultant on the STRRBC project called
'Hot Bing.'
Prior to that time, he received no compensation for any services,
other than with shares;
5. Michael J. Raimondi, M.A. is an economist and economic forecaster
who, for several years, was responsible for formulating government
procurement application budgets. Later, he provided assistance with
locating an auditing firm for the companies(8), and for providing needed
orientation on EBITDA calculation. In addition, until recently, Mr.
Raimondi performed all of the dilution calculations for all of the
companies.
He received no compensation for any services, other than with shares;
Footnotes
(8) BDO USA LLP
16
6. Lusosystems, Inc. is a technology company that is an original
pioneer, beginning on Day One. The company's technology experts have
been, until recently, responsible for achieving the technology know
how that allowed for the many government procurement applications,
from the beginning. The company technology experts achieved all of
the graphics of the various companies, of the full technology
infrastructure, search engine optimization (SEO), as well as navigating
the various posting opportunities that became available with JOBS Act.
After approximately August 2, 2015, Lusosystems was paid $100.00
for some logo editing work.
Lusosystems continues with its SEO function for the companies at
this time, and has ceased providing the other services.
Prior to that time, Lusosystems received no compensation for
any services, other than with shares;
7. Gregory P. Ramos (Greg), to be clear, is the younger brother of
Tony Ramos, the founder. Greg served his country for 25 years in the
U.S. Army, and was a large-scale transfer specialist up to the time
of his retirement. He is one of our pioneers. Greg can take an entire
Army base, load it onto a train, move it anywhere, set it up, command
it for a time, then deconstruct it, put it back onto a train, and
move it somewhere else.
His unique skill set with large scale projects allowed for the
company, in the early years of stimulus applications, to scale
the applications, create budgets, and otherwise plan on a much
larger scale than would have otherwise been possible, given the
limited knowledge on those matters of anyone else who was with
the company at that time.
He received no compensation for any services, other than with
shares;
17
8 . David J. Karre, M.B.A., M.L.S. is one of the founding pioneers,
having attended the first organizational meeting for the sister
company, Southern Tier Region Rural Broadband Company, Inc. (STRRBC).
At that time, Mr. Karre was still employed as the CEO of the Four
County Library System, in the Southern Tier region of New York. Upon
his retirement, Mr. Karre became the Vice President of RBC, and also
of STRRBC. Mr. Karre's career-length service in achieving annual
budget procurements, in taking the lead in library technology, in
creating a program for a mobile bookmobile, and in lobbying for
libraries, both on policy and funding, at the Federal and State
levels, allowed him to be one of the major contributors to our
efforts for rural broadband.
Beginning approximately August 1, 2015, he began receiving $25 per
month from RBC, as the project liaison for the STRRBC project for
sidewalk Internet, called 'Hot Bing.'
Prior to this date, he received no compensation for any services,
other than with shares;
9. Mark J. Hagemeier, M.A. is an original pioneer, a person of personal
wealth, a family member of the largest roadbed infrastructure company
in Germany, a family member of the conglomerate of that company, a
trusted advisor to the companies, an officer, director and the
Director of the Office of Financial Management of all of the
companies. Mr. Hagemeier holds a Master of Arts degree in journalism.
With his position of trust with the companies, he is the only person,
other than Tony Ramos, who acts as the backup person in case of Mr.
Ramos' death, disability, illness or other unavailability, with
signature and login access to all company bank accounts.
Mr. Hagemeier has made small shares purchases from some of the
companies, and these are detailed more fully in the Offering
Circulars.
18
On July 21, 2015, Mr. Hagemeier purchased 5,000 shares of MHRRBC
stock for the sum of $50,000.00 in cash. The purchase was
organized as a shares-buyback transaction, where an additional
2,500 shares were provided to him to keep, and where the company
will buy back the 5,000 shares on no particular timetable.
Beginning on approximately August 2, 2015, MHRRBC began
repurchasing one share per month, for $100, from Mr.
Hagemeier, pursuant to the agreement.
Prior to this date, he received no compensation for any
services, other than with shares;
10. Mark E. Bayliss is a person of personal wealth, the part-owner of
a wireless broadband Internet service access provider called Visual
Link, the part-owner of a wireless streaming video company called
Cableclix, an investor, a constant committee member on committees of
the Federal Communications Commission (FCC), and an amateur triathlon
competitor, and a technology, business and policy advisor to all of
the companies.
Mr. Bayliss' technology and policy contributions to all of the
companies are significant, and his guidance has driven most, if
not all of the technology-choice shifts from the beginning of the
company to the present, including the shift to white space
technology.
At the present time, MHRRBC continues to seek a $50,000.00
investment from Mr. Bayliss in support of the planned install in
the project area. Further, all of the companies have added the
Cableclix streaming video system as a full component of the
systems that will be installed in all residential projects.
Mr. Bayliss has received no compensation for any services, other
than with shares;
19
11. Colleen Ehrhart is a senior in college, with a major in graphics
arts. Mr. Ehrhart took over graphics design from Lusosystems, Inc.,
as an unpaid intern to all of the companies, for approximately two
years.
Ms. Ehrhart's generous contributions of her talents significantly
improved all of the visual presentations of all of the companies.
She has received no compensation for any services, other than
with shares;
12. Michael D. Lang is a company pioneer, a long serving and senior
mortgage banker in Washington, D.C., who has navigated banking
mergers as they have resulted during the years, and now at his same
desk across from the F.B.I. building in Washington at Wells Fargo
Bank. Mr. Lang was present at the origins of the company, and, when
there were no other seconds to take a meeting with Mr. Ramos, such
meetings were moved to Mr. Lang's banking office, where no less than
100 meetings took place, thus absorbing large amounts of his time.
To avoid the appearance of impropriety, none of the bank accounts
of any of the companies are maintained at Wells Fargo Bank.
Mr. Lang has received no compensation for any services, other
than with shares;
13. Martin E. Washofsky, E.A. is a company pioneer and someone who is
known to Tony Ramos for a period of more than 15 years. He is a person
of significant wealth. He is a former Internal Revenue Service (IRS)
agent, and is currently an IRS-authorized Enrolled Agent, who defends
taxpayers in administrative proceedings brought by the IRS.
20
Mr. Washofsky, thus, has had a career in accounting and auditing,
and he was responsible for much of the guidance, calculations,
budgets and forecasting during the stimulus era of the company.
Mr. Washofsky, prior to the organization of any of the present
companies, provided $5,000.00 during the stimulus era in
assistance of the preparation of the large stimulus
applications.
He has never sought the return of those funds, and there is no
written or verbal agreement to return those funds to him.
Mr. Washofsky has received no compensation for any services,
other than with shares;
14. Gary Horowitz is a company pioneer, who met with Mr. Ramos
during the stimulus era. Mr. Horowitz is a member of New York
Police, for many years, a volunteer firefighter, the Chairman of
a volunteer firefighting force that is organized under the laws
of the State of New York, and a constant supporter of the MHRRBC
projects and efforts.
Mr. Horowitz owns a home, in addition in the State of Arizona.
In that capacity, he acts as the registered agent for service
of process for the sister company, Western Gateway Region
Rural Broadband Company, Inc. (WGRRBC).
Beginning approximately August 1, 2015, he began receiving $25
per month from RBC, as the registered agent for WGRRBC.
Prior to this time, he received no compensation for any
services, other than with shares;
21
15. Eric W. Will, II is a company pioneer, a person of personal
wealth who counts among his venture capital deals an $8.5
million effort in Upstate New York and who remains extremely
active as an officer and director in all of the companies.
Mr. Will has been in business for many, many years, and that
business acumen guides all of the companies, and Mr. Ramos on a
near-daily basis. Further, and as a result of his business
background, Mr. Will is instrumental in guiding the companies on
issues of corporate governance(9), finance, business organization,
insurance, accounting, ROI and other financial projection issues.
Mr. Will is the registered agent of RBC, which was reorganized
in the State of Delaware in 2015(10).
Some years ago, Mr. Will provided $1,000.00 in 'seed' capital
to the companies, with the proviso that Mr. Ramos personally
guarantee repayment at some point in the future.
That balance remains pending.
Beginning approximately August 1, 2015, and unrelated, Mr. Will
began receiving $25 per month from RBC, as the registered agent
for RBC.
Prior to this time, he received no compensation for any
services, other than with shares;
Footnotes
(9) All of the companies have adopted, for purposes of corporate governance,
uniform rules for meetings and voting, and all corporate governance policy
is conducted by using corporate resolutions.
(10) Prior to such reorganization, RBC was organized in Washington, D.C. At
the time of renewal, however, Mr. Ramos learned that the District of
Columbia repealed its 'for profit' corporations statute, and had not, and
has not, passed a replacement. Without such corporate law stability, RBC
sought the advice of counsel, who advised that the State of Delaware
possesses the most advanced corporate organization and governance laws,
a national model, apparently. As a result, the board decided to
reorganize RBC in the State of Delaware.
22
16 . Anthony J. Castaldo is an early supporter of the concept of
all of the companies for rural broadband infrastructure
expansion. Until recently, Mr. Castaldo was the long-serving
computer manager of the large Ramapo Catskills Library System,
and was directly responsible for organizing the 52-building fiber
loop that powers the technology hardware and software for all of
the libraries.
Upon his recent retirement, Mr. Castaldo has become a trusted
technology advisor and designer for our projects, and a board
member of some of the companies.
Beginning approximately August 1, 2015, Mr. Castaldo began
receiving $25 per month from MHRRBC, and $25 per month from
RBC, as a technology consultant for the two most active
projects, Wawarsing My First Car Club, and Hot Bing.
Prior to this time, he received no compensation for any
services, other than with shares.
As a result of recent project work, STRRBC is in the process
of reimbursing Mr. Castaldo for services related to the Hot
Bing project in the amount of $325.
(b) As to any unregistered securities of the issuer or any of its
predecessors or affiliated issuers which were sold within one year prior
to the filing of this Form 1-A by or for the account of any person who
at the time was a director, officer, promoter or principal security
holder of the issuer of such securities, or was an underwriter of any
securities of such issuer, furnish the information specified in
subsections (1) through (4) of paragraph (a):
none;
23
(c) Indicate the section of the Securities Act or Commission rule or
regulation relied upon for exemption from the registration requirements
of such Act and state briefly the facts relied upon for such exemption:
Section: JOBS Act, Rule 506;
Facts relied on: in accordance with JOBS Act rules and regulations as
published in the Federal Register, to include, sales for investment
purposes only, single price, single class.
ITEM 6. Other Present or Proposed Offerings State whether or not the issuer
or any of its affiliates is currently offering or contemplating the
offering of any securities in addition to those covered by this Form 1-A:
none.
ITEM 7. Marketing Arrangements
(a) Briefly describe any arrangement known to the issuer or to any person
named in response to Item 1 above or to any selling securityholder in the
offering covered by this Form 1-A for any of the following purposes:
(1) To limit or restrict the sale of other securities of the same
class as those to be offered for the period of distribution:
none;
24
(2) To stabilize the market for any of the securities to be offered:
none;
(3) For withholding commissions, or otherwise to hold each
underwriter or dealer responsible for the distribution of its
participation:
none;
(b) Identify any underwriter that intends to confirm sales to any accounts
over which it exercises discretionary authority and include an estimate of
the amount of securities so intended to be confirmed:
none.
ITEM 8. Relationship with Issuer of Experts Named in Offering Statement
If any expert named in the offering statement as having prepared or
certified any part thereof was employed for such purpose on a contingent
basis or, at the time of such preparation or certification or at any
time thereafter, had a material interest in the issuer or any of its
parents or subsidiaries or was connected with the issuer or any of its
subsidiaries as a promoter, underwriter, voting trustee, director,
officer or employee furnish a brief statement of the nature of such
contingent basis, interest or connection:
none.
25
ITEM 9. Use of a Solicitation of Interest Document
Indicate whether or not a publication authorized by Rule 254 was used
prior to the filing of this notification:
no publication was prepared, and, therefore, none was submitted to
the SEC as of the request for pre-approval of this Offering Statement
by the SEC. Any such proposed future publications will be processed
pursuant to Rule 254.
III. Supplemental Information
The following information shall be furnished to the Commission as
supplemental information:
(1) A statement as to whether or not the amount of compensation to be
allowed or paid to the underwriter has been cleared with the NASD:
no underwriting decisions have been made as of the request for
pre-approval of this Offering Statement because the Issuer has
not located any underwriters who are taking the new Regulation
A offerings. As such, no, there is nothing to be cleared with
NASD;
26
(2) Any engineering, management or similar report referenced in the
offering circular:
there are none;
(3) Such other information as requested by the staff in support of
statements, representations and other assertions contained in the
offering statement:
such will be provided upon request.
27
PART II AND III
4
mhrrbc2damendedoffcirc.txt
SECOND AMENDED OFFERING CIRCULAR
SECOND AMENDED(1) JOBS ACT / REGULATION A, AS AMENDED - OFFERING CIRCULAR(2)
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE
MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE
OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING
CIRCULAR OR OTHER SELLING LITERATURE. THESE SECURITIES ARE OFFERED PURSUANT
TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE
COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES
OFFERED HEREUNDER ARE EXEMPT FROM REGISTRATION.(3)
MID-HUDSON REGION RURAL BROADBAND COMPANY, INC. (MHRRBC)
Issuing Company: Mid-Hudson Region Rural Broadband Company, Inc.
Issuer's Representative: Tony Ramos, President
1050 Connecticut Ave., NW
10th floor
Washington, D.C. 20036
202-321-7969
tramos@urbroadband.com
DATE OF OFFERING CIRCULAR: June 19, 2015. AMENDED: AUGUST 15, 2015 &
SEPTEMBER 24, 2015
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALES TO THE PUBLIC: UPON
APPROVAL(4)
DESCRIPTION OF SECURITIES: $20,000,000.00 common/voting shares /
Tier 1 Regulation A
MATERIAL RISK: THE COMPANY HAS NO OPERATING HISTORY. SEE OTHER RISKS SHOWN
IN THIS OFFERING CIRCULAR.
MITIGATION OF RISK FACTOR: THREE-DAY RIGHT OF WITHDRAWAL AFTER SIGNING OF
SALES CONTRACT
UNDERWRITERS: none.
DISTRIBUTION SPREAD TABLE
Price to public: $100 per share
Underwriting discounts and commissions*: None
Proceeds to Issuer or to other persons per unit: 100% to Issuing company(5)
Termination date: June 18, 2016
Total maximum securities offered: 200,000
Total minimum securities offered: 200,000
*Per Model B instructions, investors are advised as follows: as of the date of
sales to the public, because this is a new rule under JOBS Act, the Issuer
has not been able to locate any affiliates to whom commissions would be
paid, and therefore, no cash or any other commissions would be paid as of
that date. That said, the Issuer will seek such affiliates as they become
known, and, upon the retainer of any, or of any underwriters or others who
may sell these securities consistent with the new JOBS Act rules for this
exempt offering, this Offering Circular will be amended, and, should it
have been already provided to any potential or real investors, will be
provided to them, and will also be posted on the Internet with this
original Offering Circular at www.urbroadband.com. No finder's fees are
offered without amending this Offering Circular.
Footnotes:
(1) All amendments made in response to the Commission's letters of
July 24, 2015 & August 25, 2015.
(2)Expenses of this Offering Circular are borne exclusively by the Issuer.
(3) 17 CFR 230.253
(4) All sales to be concluded only in the District of Columbia.
(5) No shares offered on account of any securities holders.
TABLE OF CONTENTS - FORM 1-A, AS AMENDED BY NEW REG. A
TABLE OF CONTENTS..................................................i-xiv
ITEM 1. SUMMARY INFORMATION, RISK FACTORS AND DILUTION.............1-5
A. SUMMARY INFORMATION........................................1
B. RISK FACTORS...............................................1-3
C. RISK MITIGATION FACTORS: ..................................3-4
D. DILUTION...................................................4
E. MATERIAL DISPARITIES.......................................4-5
ITEM 2 . PLAN OF DISTRIBUTION - ALL SALES TO LAND
IN THE HANDS OF THE INVESTOR.....................................5-8
A. UNDERWRITERS...............................................5
B. DISCOUNTS AND COMMISSIONS..................................6
C. PLAN OF DISTRIBUTION.......................................6
D. NO SHARES OFFERED OR SOLD
ON ACCOUNT OF SECURITIES HOLDERS..................................7
i
E. NO RESTRICTIONS ON AMOUNT OF FUNDS RAISED UP
TO REGULATION A LIMITS, AND THEREFORE, NO
'RETURN OF FUNDS' ISSUE.......................................7-8
1. NO UNDERWRITERS........................................7
2. NO PAYMENT DELAYS......................................8
ITEM 3 . USE OF PROCEEDS TO ISSUER................................8-9
A. INTENDED USE OF NET PROCEEDS...............................8
B. STATEMENT AS TO USE OF ACTUAL PROCEEDS.....................8
C. NO OTHER FUNDS TO BE USED..................................8
D. NO PROCEEDS USED TO DISCHARGE INDEBTEDNESS.................9
E. NO PROCEEDS TO BE USED TO ACQUIRE NON-PROJECT ASSETS.......9
F. RESERVATION OF RIGHTS TO CHANGE USE OF PROCEEDS............9
G. COMPLIANCE WITH 17 CFR 230.251, AS AMENDED.................10(6)
Footnotes:
(6) Added in this Amended Offering Circular.
ii
ITEM 4. DESCRIPTION OF BUSINESS...................................10-15
A. BUSINESS DONE AND INTENDED TO BE DONE......................10
B. THE PRINCIPAL PRODUCTS PRODUCED AND SERVICES
RENDERED AND THE PRINCIPAL MARKET FOR AND METHOD
OF DISTRIBUTION OF SUCH PRODUCTS AND SERVICES.................10-11
C. THE STATUS OF A PRODUCT OR SERVICE IF THE ISSUER
HAS MADE PUBLIC INFORMATION ABOUT A NEW PRODUCT OR
SERVICE WHICH WOULD REQUIRE THE INVESTMENT OF A
MATERIAL AMOUNT OF THE ASSETS OF THE ISSUER OR
IS OTHERWISE MATERIAL .........................................11
D. THE ESTIMATED AMOUNT SPENT DURING THE LAST TWO
FISCAL YEARS ON COMPANY-SPONSORED RESEARCH AND
DEVELOPMENT ACTIVITIES DETERMINED IN ACCORDANCE
WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES..................12
E. THE ESTIMATED DOLLAR AMOUNT SPENT DURING EACH
OF SUCH YEARS ON MATERIAL CUSTOMER-SPONSORED RESEARCH
ACTIVITIES RELATING TO THE DEVELOPMENT OF NEW PRODUCTS,
SERVICES OR TECHNIQUES OR THE IMPROVEMENT OF EXISTING
PRODUCTS, SERVICES OR TECHNIQUES...............................12
iii
F. THE NUMBER OF PERSONS EMPLOYED BY THE ISSUER................12
G. THE MATERIAL EFFECTS THAT COMPLIANCE WITH
FEDERAL, STATE, AND LOCAL PROVISIONS WHICH HAVE
BEEN ENACTED OR ADOPTED REGULATING THE DISCHARGE
OF MATERIALS INTO THE ENVIRONMENT, MAY HAVE UPON
THE CAPITAL EXPENDITURES, EARNINGS AND
COMPETITIVE POSITION OF THE ISSUER AND ITS SUBSIDIARIES........13
H. DISTINCTIVE OR SPECIAL CIRCUMSTANCES OF THE
ISSUER'S OPERATIONS OR INDUSTRY WHICH MAY HAVE
A MATERIAL IMPACT UPON THE ISSUER'S FUTURE
FINANCIAL PERFORMANCE..........................................13-14
1. DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
OR SUPPLIERS INCLUDING SUPPLIERS OF RAW
MATERIALS OR FINANCING.....................................13
2. EXISTENCE OF PROBABLE GOVERNMENTAL REGULATION...........13
iv
3. MATERIAL TERMS OF AND/OR EXPIRATION OF MATERIAL
LABOR CONTRACTS, OR PATENTS, TRADEMARKS, LICENSES,
FRANCHISES, CONCESSIONS OR ROYALTY AGREEMENTS..............13
4. UNUSUAL COMPETITIVE CONDITIONS IN THE INDUSTRY
AND ANTICIPATED RAW MATERIAL OR ENERGY SHORTAGES
TO THE EXTENT MANAGEMENT MAY NOT BE ABLE TO SECURE
A CONTINUING SOURCE OF SUPPLY..............................14
I. THE ISSUER'S PLAN OF OPERATION FOR THE
TWELVE MONTHS FOLLOWING COMMENCEMENT OF
THE PROPOSED OFFERING..........................................14
J. PROCEEDS FROM THE OFFERING TO PROJECT CASH
REQUIREMENTS AND WHETHER, IN THE NEXT SIX
MONTHS, IT WILL BE NECESSARY TO RAISE
ADDITIONAL FUNDS...............................................14-15
K. ANY ENGINEERING, MANAGEMENT, OR SIMILAR
REPORTS WHICH HAVE BEEN PREPARED OR PROVIDED
FOR EXTERNAL USE BY THE ISSUER OR UNDERWRITER
OR BY A PRINCIPAL UNDERWRITER..................................15
L. SEGMENT DATA................................................15
v
ITEM 5. DESCRIPTION OF PROPERTY....................................16
ITEM 6 . DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES...17-22
A. DIRECTORS...................................................17-18
B. EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES................18
C. FAMILY MEMBERS..............................................19
D. BUSINESS EXPERIENCE.........................................19-22
E. INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS....................22
1. BANKRUPTCY OR STATE INSOLVENCY..........................22
2. CRIMINAL PROCEEDINGS....................................22
ITEM 7. REMUNERATION OF DIRECTORS AND OFFICERS.....................22-23
A. ANNUAL REMUNERATION ........................................22
B. PROPOSED REMUNERATION PAYMENTS..............................23
vi
ITEM 8. SECURITY OWNERSHIP OF MANAGEMENT AND
CERTAIN SECURITYHOLDERS...........................................23
A. VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF.............23
1. BY THE THREE HIGHEST PAID PERSONS WHO
ARE OFFICERS AND DIRECTORS OF THE ISSUER...................23
2. ALL OFFICERS AS A GROUP ................................23
3. EACH SHAREHOLDER WHO OWNS MORE THAN 10%
OF ANY CLASS OF THE ISSUER'S SECURITIES,
INCLUDING THOSE SHARES SUBJECT TO OUTSTANDING OPTIONS......23
B. TABLE OF OWNERSHIP..........................................24
1. PRE-OFFERING SHARES.....................................24(7)
2. CONTROL VOTES...........................................24
3. 10% voting shares.......................................24
C. NON-VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF.........25
D. OPTIONS, WARRANTS AND RIGHTS................................25
Footnotes
(7) Amended as part of this Amended Offering Circular.
vii
E. PARENTS OF THE ISSUER, BASIS OF CONTROL,
AND PERCENTAGE OF VOTING SECURITIES............................25
1. PARENT..................................................25
2. BASIS OF CONTROL........................................25
3. PERCENTAGE OF OWNERSHIP.................................25
ITEM 9. INTEREST OF MANAGEMENT AND OTHERS
IN CERTAIN TRANSACTIONS...........................................26-30
BRIEF DESCRIPTION OF ANY TRANSACTIONS DURING
THE PREVIOUS TWO YEARS OR ANY PRESENTLY PROPOSED
TRANSACTIONS, TO WHICH THE ISSUER OR ANY OF ITS
SUBSIDIARIES WAS OR IS TO BE A PART, IN WHICH
ANY OF THE FOLLOWING PERSONS HAD OR IS TO HAVE
A DIRECT OR INDIRECT MATERIAL MATERIAL INTEREST,
NAMING SUCH PERSON AND STATING HIS RELATIONSHIP
TO THE ISSUER, THE NATURE OF HIS INTEREST IN THE
TRANSACTION, AND, WHERE PRACTICABLE, THE AMOUNT
OF SUCH INTEREST..................................................26
A. ANY DIRECTOR OR OFFICER OF THE ISSUER.......................26
viii
B. ANY NOMINEE FOR ELECTION AS A DIRECTOR......................26
C. ANY PRINCIPAL SECURITYHOLDER NAMED IN
ANSWER TO ITEM 8 A, ABOVE......................................26
D. IF THE ISSUER WAS INCORPORATED OR
ORGANIZED WITHIN THE PAST THREE YEARS,
ANY PROMOTER OR ISSUER.........................................26
E. ANY RELATIVE OR SPOUSE OF ANY OF THE
FOREGOING PERSONS, OR ANY RELATIVE OF SUCH
SPOUSE, WHO HAS THE SAME HOUSE AS SUCH PERSON
OR WHO IS A DIRECTOR OR OFFICER OF ANY PARENT
OR SUBSIDIARY OF THE ISSUER....................................27
F. MATERIAL TRANSACTIONS INVOLVING BANK DEPOSITORY
OF FUNDS, TRANSFER AGENT REGISTRAR, TRUSTEE UNDER
A TRUST INDENTURE, OR SIMILAR SERVICES.........................27-28
G. MATERIAL TRANSACTIONS OR A SERIES OF
SIMILAR TRANSACTIONS, INCLUDING ALL PERIODIC
INSTALLMENTS IN THE CASE OF ANY LEASE OR
OTHER AGREEMENT PROVIDING FOR PERIODIC
PAYMENTS OR INSTALLMENTS THAT DOES NOT
EXCEED $50,000.00..............................................28
ix
H. WHERE THE INTEREST OF THE SPECIFIED PERSON
ARISES SOLELY FROM THE OWNERSHIP OF
SECURITIES OF THE ISSUER AND THE SPECIFIED
PERSON RECEIVES NO EXTRA OR SPECIAL BENEFIT
NOT SHARED ON A PRO-RATA BASIS BY ALL OF
THE HOLDERS OF SECURITIES OF THE CLASS.........................28
I. MATERIAL INDIRECT RELATIONSHIPS ............................28-30
1. FROM SUCH PERSON'S POSITION AS A DIRECTOR
OF ANOTHER CORPORATION OR ORGANIZATION (OTHER
THAN A PARTNERSHIP) WHICH IS A A PARTY TO THE
TRANSACTION................................................28
2. FROM THE DIRECT OR INDIRECT OWNERSHIP BY SUCH
PERSON AND ALL OTHER PERSONS SPECIFIED HEREIN IN
THE AGGREGATE, OF LESS THAN 10 PERCENT OF EQUITY
INTEREST IN ANOTHER PERSON (OTHER THAN A
PARTNERSHIP) WHICH IS A PARTY TO THE TRANSACTION...........28
x
3 WHERE THE INTEREST OF SUCH PERSON ARISES
SOLELY FROM THE HOLDING OF AN EQUITY INTEREST
(INCLUDING A LIMITED PARTNERSHIP INTEREST BUT
EXCLUDING A GENERAL PARTNERSHIP INTEREST) OR
A CREDITOR INTEREST IN ANOTHER TRANSACTION WITH
THE ISSUER OR ANY OF ITS SUBSIDIARIES AND THE
TRANSACTION IS NOT MATERIAL TO SUCH OTHER PERSON...........29
4. MATERIAL UNDERWRITING DISCOUNTS AND
COMMISSIONS UPON THE SALE OF SECURITIES BY THE
ISSUER WHERE ANY OF SPECIFIED PERSONS WAS OR
IS A CONTROLLING PERSON, OR MEMBER, OF A FIRM
WHICH WAS OR IS TO BE A PRINCIPAL UNDERWRITER..............29
5. AS TO ANY TRANSACTION INVOLVING THE PURCHASE
OR SALE OF ASSETS BY OR TO ANY ISSUER, OR ANY
SUBSIDIARY, OTHERWISE THAN IN THE ORDINARY COURSE
OF BUSINESS,
xi
STATE THE COST OF THE ASSETS TO THE PURCHASER
AND, IF ACQUIRED BY THE SELLER WITHIN TWO
YEARS PRIOR TO THE TRANSACTION, THE COST
THEREOF TO THE SELLER...................................29
6. MATERIAL TRANSACTIONS WHICH INVOLVE REMUNERATION
FROM THE ISSUER OR ITS SUBSIDIARIES, DIRECTLY OR
INDIRECTLY, TO ANY OF THE SPECIFIED PERSONS FOR
SERVICES IN ANY CAPACITY UNLESS THE INTEREST OF
SUCH PERSONS ARISES SOLELY FROM THE OWNERSHIP
INDIVIDUALLY AND IN THE AGGREGATE OF LESS THAN 10
PERCENT OF ANY CLASS OF EQUITY SECURITIES OF
ANOTHER CORPORATION FURNISHING SERVICES TO THE
ISSUER OR ITS SUBSIDIARIES.................................30
ITEM 10. SECURITIES BEING OFFERED..................................30-32
A. CAPITAL STOCK...............................................30-31
l. TITLE OF CLASS..........................................30
2. DIVIDEND RIGHTS ........................................30
xii
3. VOTING RIGHTS ..........................................30
4. LIQUIDATION RIGHTS......................................31
5. PREEMPTIVE RIGHTS ......................................31
6. CONVERSION RIGHTS ......................................31
7. REDEMPTION PROVISIONS ..................................31
8. SINKING FUND PROVISIONS ................................31
9. LIABILITY TO FURTHER CALLS OR TO
ASSESSMENT BY THE ISSUER...................................31
B. DEBT OR SECURITIES BEING OFFERED............................31
C. WARRANTS, RIGHTS, OR CONVERTIBLE SECURITIES.................32
D. BALANCE SHEET...............................................32
E. STATEMENT OF INCOME, CASH FLOWS, AND
OTHER STOCKHOLDER EQUITY.......................................32
xiii
F. FINANCIAL STATEMENTS OF BUSINESS
ACQUIRED OR TO BE ACQUIRED.....................................32
G. PRO FORMA FINANCIAL INFORMATION.............................32-33
CONCLUSION.........................................................34
xiv
ITEM 1. SUMMARY INFORMATION, RISK FACTORS, RISK MITIGATION FACTORS, DILUTION
AND MATERIAL DISPARITIES
A. Summary Information:
This Regulation A opportunity is for what is called the 'interconnector'
sector of the broadband infrastructure industry. This sector provides the
system whereby broadband Internet access service (BIAS) providers, as
currently defined by the FCC's new Open Internet rules, sell their retail
services to customers. These are companies like Netflix, Hulu, Crackle,
YouTube, Apple TV, as well as the traditional content providers, like
Comcast and Time Warner Cable.
This project is limited to unserved and underserved rural areas of the
United States, and provides such 'interconnector' infrastructure for
homes, businesses, and rural cities.
B. Risk Factors:
1. Statements of future forecasts, projections and expectations are
not statements of returns on investment;
2. Market penetration may not be immediate;
3. Zoning issues may delay the start of parts of the project;
4. Attracting broadband providers to a carrier-neutral environment
could result in initial limited user expansion;
l
5. Local government needs could accelerate adoption, at a short term
financial loss;
6. The Company has no operating history;
7. Sales of shares will be restricted in accordance with
Regulation A, as amended, effective June 19, 2015;
8. Technology choice: the primary technology choice for this project
is white space infrastructure technology. This technology was
authorized by the U.S. Federal Communications Commission (FCC), in
2012, and thus, there is limited data on a national rollout of this
technology at the present time. This project would be among the first
for a consumer-ready rollout of the technology infrastructure;
9. There is an absence of profitable operations in recent periods;
10. There is no current, defined method for determining market price
for the service, as the service has, as of yet, not had a commercial
rollout;
2
11. the project has not yet been completed and, accordingly; has no
operating history. The company, therefore, has no operating history
of earnings and its operations will be subject to all of the risks
inherent in the establishment of a new business enterprise.
Accordingly the success of the business is completely dependent upon
financial, business, competitive, regulatory and other general
factors affecting the rural broadband interconnector sector in
general as well as prevailing economic conditions;(8)
12. although, under Regulation A securities are unrestricted, there
is, for this offering, no opportunity to achieve control securities;(9)
C. Risk Mitigation Factors:
l. 3-day right of withdrawal;(10)
2. required pre-purchase in-person meeting in Washington, D.C. with
Issuer's representative, and, upon signing confidentiality statement,
additional proprietary project information provided;(11)
3.right of rescission maintained under new JOBS Act rules;(12)
Footnotes:
(8) See, In Re Donald J. Trump Casino Securities Litigation - Taj Mahal
Litigation, 7 F.3d 357 (3rd Cir. 1993)
(9) See, Section 3 (b) (2) (C ), SEC Rules, JOBS Act and Rule 405, SEC Rules
(10)See,Section 4A (a) (1) G) SEC Rules, JOBS Act
(11) All contracts to be concluded only in person with Issuer's representative
in Washington, D.C. No sales or solicitations, except consistent with JOBS
Act, conducted by any electronic means, or by the U.S. mail, or any other
delivery service.
(12) See, Section 4A (c) SEC Rules, JOBS Act
3
4. stock class: not restricted; (13)
5. distribution: shares to land in the hands of the investor as of
this offering.(14)
D. Dilution:
The dilution formula that is utilized is taken from the administrative
code of the State of Florida. After a survey of various dilution
calculations from industry, as well as research among different State
Blue Sky laws, we found that Florida's formula, as specifically codified,
offers the best transparency by which to calculate dilution.
E . Material disparities:
There is no material disparity between the public offering price and the
effective cash cost to officers, directors, promoters and affiliated
persons as of the time of this offering circular, and there has been none
in the past three years.
Further, the Issuer's representative, and its officers and directors,
which includes the Issuer's representative, do not anticipate any such
material disparity, or discount.
Footnotes:
(13) See, footnote 5
(14) Thus, no secondary sellers, including underwriters or brokers or dealers,
and therefore, no additional fees for this first offering. Subject to change
upon amendment of this offering circular upon any new distribution plan,
consistent with Regulation A rules governing this offering circular.
4
With respect to promoters and affiliated persons, because this Regulation A
offering is based upon new rules, made effective on June 19, 2015, the
Issuer's representative was unable to locate any such persons as of the
effective offering date of this offering circular, which is also
June 19, 2015. This being said, in the event such persons do begin to
hold themselves out as promoters or affiliates, and are so qualified,
the Issuer intends to utilize the services of such promoters and
affiliates and will amend this Offering Circular, as required by the
Regulation A rules, as amended, in a timely manner, or with withdraw
same and file a new one, consistent with said rules.
ITEM 2. PLAN OF DISTRIBUTION - ALL SALES TO LAND IN THE HANDS OF THE INVESTOR
A . Underwriters:
For this initial filing, there is only a primary distribution, with all
shares to land in the hands of the investor directly from the Issuer.
There are no underwriters on this offering as of the potential date of
first public sale, June 19, 2015. In the event, however, that
underwriters do begin to take business under this new, amended
Regulation A offering opportunity, the Issuer intends to seek out and
retain such for this offering.
In that event, and at that time, the Issuer intends to utilize the
services of such underwriters and will amend this Offering Circular(15),
as required by the Regulation A rules, as amended, in a timely manner,
consistent with said rules.
Footnotes:
(15) Or, if required to, withdraw this one and re-file it with a secondary
plan of distribution.
5
B . Discounts and commissions:
There are no agreements for discounts and commissions as of the potential
date of the first public sale, June 19, 2015, because there have been no
promoters, underwriters or affiliates yet retained.
In the event, however, that such persons are retained under this new,
amended Regulation A offering opportunity, the Issuer intends to allow
for such discounts and to pay to such persons such amounts as may be
reasonable and allowed by the new rules for Regulation A, as well as by
any such voluntary or required groups, organizations or agencies that
may provide for regulation and licensing of said persons.
In that event, and at that time, the Issuer will amend this Offering
Circular, as required by the Regulation A rules, as amended, in a
timely manner, or withdraw this one and file a new one, consistent with
said rules.(16)
C. Plan of distribution:
As of the date of the filing of this first Regulation A offering circular
for this project, such is limited to primary distribution only, with all
shares landing in the hands of the investor directly from the Issuer and
the Issuer's representative.
As of the potential first offering sale date, and only upon successful
upload to the SEC for registration, and if those two are not the same,
upon the completion of the latter, there will be no secondary offering
agreements, contracts, or any other relations with any persons or
companies for other than primary sales.
Footnotes:
(16) Or, if required to, withdraw this one and re-file it with a secondary
plan of distribution.
6
D. No shares offered or sold on account of securities holders:
Consistent with Item 2. C, above, all shares will be sold upon issuance
only from the Issuer and to land in the hands of the investor.
E. No restrictions on amount of funds raised up to Regulation A limit, and
therefore, no return of funds issue, no underwriters:
1. no restrictions: all sales are primary in nature, and will land in
the hands of the investor directly from the Issuer.
There are no arrangements with any persons, by the Issuer, or the
Issuer's representative for any return of funds(17), other than those
as stated herein with respect to the 3-day right of withdrawal,(18)
and except as to the Tier 1 funding cap of $20 million.(19)
The existence of the Tier 1 funding cap, however, is not a
restriction as to the return of any funds for this offering,(20) as
any funds raised,(21) up to and including the funding cap limit, will
be used for project implementation;
Footnotes:
(17) See, Rules 10b-9 [17 CFR 240.10b-9] and 15c2-4 [17 CFR 240.15c2-4] under
the Securities Exchange Act of 1934, as made applicable by Form 1-A.
(18) See, footnote 8
(19)See, Section II. A. Final Rules, Regulation A, as amended:
https://drive.google.com/file/d/0BxfFvX3PZFjzY3M0YjBSRGFRREk/view?usp=sharing
(20) See, Section III. 3. a., Id.
(21) But see, Section III. 4. for any potential funding restrictions by any
individual investors. Id.
7
2. No underwriters: as there are no underwriters, there will be no
delay in payments.
ITEM 3. USE OF PROCEEDS TO ISSUER
A. Intended use of net proceeds:
All proceeds will be utilized to effectuate the
implementation/install/operational activation of large scale rural
broadband inter-connector infrastructure, utilizing, primarily, white
space technology, with co-location for backhaul, as well as the
integration of streaming video capability.
B. Statement as to use of actual proceeds:
All proceeds will be utilized to effectuate the
implementation/install/operational activation of large scale rural
broadband inter-connector infrastructure, utilizing, primarily, white
space technology, with co-location for backhaul, as well as the
integration of streaming video capability.
All funds will be sufficient, consistent with budget scaling of the
amount of investments, so as to accomplish project goals. For example,
if X amount of funding is achieved, then Y amount, or sections, of a
given project area can be fully built out and made operational.
C. No other funds to be used:
As of the effective date for new Regulation A, June 19, 2015, a JOBS Act
sales contract under the Company's Form Reg. D notice filing was in
effect, but funds had not yet been received. There are no other funds
that would be used in conjunction with any proceeds.(22)
Footnotes:
(22) Where possible, however, proceeds may be used as collateral for project
components, like hardware purchases, and also as security for project lines
of credit for such hardware. Among the company goals is the establishment of
a good business credit rating, and as such, such funds can, and will,
contribute to the achievement of that goal.
8
D. No proceeds to be used to discharge indebtedness:
The project carries no debt, and therefore, no proceeds would be used to
discharge any indebtedness.
E. No proceeds to be used to acquire non-project assets:
With the exception of assets acquired in the ordinary course of business
for the project, there will be no other use of the proceeds.
F. Reservation of right to change use of proceeds:
The issuer reserves the right to change the use of proceeds provided that
such reservation is due to certain contingencies which are adequately
disclosed.
For example, the project may require the purchase of small and
insignificant tracts of real estate for the purposes of positioning
hardware, or structures upon which to mount such hardware. Or, for
co-location purposes, the project may require the long-term leasing of
space on certain rooftops, again for the purposes of providing relay
connector hardware to the project area.
In all instances, however, the project plan is to avoid either the
purchase of any real estate or the necessity of establishing such rooftop
links. In other words, one of the primary project goals is to have access
to broadband Internet service utility connections that are a part of the
location of the sending radios, or in very close proximity to such. In
this manner, significant costs of such real estate and other co-location
items may be avoided, and thus, budget kept more efficient.
9
G. Compliance with 17 CFR 230.251(23), as amended:
The Issuing company/applicant has no plans and no business plan, or
intentions to engage in a merger or acquisition with an unidentified
company, companies, entity or person.
ITEM 4 . DESCRIPTION OF BUSINESS
A. Business done and intended to be done:
The project has consisted of the origination, organization, design and
development of a large-scale rural interconnector infrastructure that
will bring Internet service to unserved areas of rural America.
Such business has been conducted over a period in excess of five years.
The business to be done consists of utilizing the proceeds to implement,
fulfill, and make operational, such infrastructure in a defined project
area.
B. The principal products produced and services rendered and the principal
market for and method of distribution of such products and services:
The principal 'product' produced consists of a consumer-ready 'kit' that
brings full Internet service to the unserved areas of rural America. The
Federal Communications Commission (FCC), for example, has identified
84,000 unserved census blocks in rural America.(24)
Footnotes:
(23) As amended, effective June 19, 2015.
(24) See, www.fcc.gov/encyclopedia/rural-broadband-experiments
10
The 'kit' concept was originated by the parent company(25) in order to
create a defined, consumer-ready project plan that can be scaled from a
small, to a massive project size, depending on funding.
The principal 'service' that would be provided consists of the permanent
operation of the 'kit' over the entire rural American landscape.(26)
C. The status of a product or service, if the issuer has made public
information about a new product or service which would require the
investment of a material amount of the assets of the issuer or is
otherwise material:
The issuer has made 'public' the 'product' by making JOBS Act, Rule
506 notifications on the Internet. The principal 'service' is
identified on the main project website, at www.urbroadband.com.
Thus, there are no investment proceeds which would require such new
information, and saving, therefore, the proceeds for use in project
implementation.
D. The estimated amount spent during each of the last two fiscal years
on company-sponsored research and development activities determined in
accordance with generally accepted accounting principles:
The company has spent all of its time during the past six fiscal years
on research and development activities.
Footnotes:
(25) Rural Broadband Company, Inc.
(26) A useful analogy is with the earlier implementation of rural
electrification in the United States.
11
E. The estimated dollar amount spent during each of such years on
material customer-sponsored research activities relating to the
development of new products, services or techniques or the improvement
of existing products, services or techniques:
For largely proprietary reasons, the company has avoided such spending,
and will continue to avoid such, for those same reasons. Further, both
the FCC and th United States Department of Agriculture, among other
Federal and State agencies, have extensive public information available
on this issue.
F. The number of persons employed by the issuer:
For purposes of cost control, the Issuer maintains no staff of employees.
All persons who are employed on the project are consultants and others
with specialized knowledge, who work for themselves, or for outside
companies.
Further, the project anticipates little employment because most of the
work to be performed, in terms of install and the like, must be done
by the original equipment manufacturers (OEM), or by contractors
employed by them for that purpose.
This being said, a staff of customer support personnel, to relay messages
for customer issues, will be retained upon funding.
Further, a staff of computer-related personnel, for the purposes of
media, social media, community outreach and the like will be maintained
for the project.
12
G. The material effects that compliance with Federal, State and local
provisions which have been enacted or adopted regulating the discharge
of materials into the environment, may have upon the capital
expenditures, earnings and competitive position of the issuer and its
subsidiaries:
None.
H. Distinctive or special characteristics of the issuer's operation or
industry which may have a material impact upon the issuer's future
financial performance:
1. dependence on one or a few major customers or suppliers
(including suppliers of raw materials or financing):
none;
2. existence of probable governmental regulation:
the interconnector sector for broadband is not a part of the FCC's
recent Open Internet rules. This said, to the extent that
broadband Internet access service (BIAS) provider retailers will
sell their services on our system, those providers will be
regulated by the FCC;
3. material terms of and/or expiration of material labor contracts
or patents, trademarks, licenses, franchises, concessions or
royalty agreements:
none;
13
4. unusual competitive conditions in the industry, cyclicality of the
industry and anticipated raw material or energy shortages to the
extent management may not be able to secure a continuing source
of supply:
none.
I. The issuer's plan of operation for the twelve months following the
commencement of the proposed offering:
Proceeds will be utilized, immediately, to achieve full implementation
of the projects. All planning is in place, and there is, thus, nothing
else to do other than proceed to installation and activation;
J. Proceeds from the offering to project cash requirements and whether,
in the next six months, it will be necessary to raise additional funds:
Proceeds will be utilized in strict accordance with budget calculations
and for install and activation.
Accordingly, as the budget may be measured by the amount of any proceeds
at any one given time, and then the project sector may be scaled
accordingly, there would be no need to raise additional funds for that
sector.
For example, if the project raises an initial $600,000.00, then that
amount would go towards the installation of one of the big sending
radios, and 80 receiving radios in homes or offices. The only reason
that the full 80 may not be installed at the outset would be the result
of needing a higher capacity hardware install at the peering point. As
these costs are generally known, and may be calculated, in fact, whether
such additional capacity will be needed at any given sector would not be
known until the install begins.
14
For example, a base station location that otherwise qualifies for the
sending radio, on that has height and electricity and is not in an
FCC-prohibited flight path, among other factors, may not have an
Internet connection, or may have one, but the hardware is not sufficient
to be able to handle the bandwidth that is needed. In this scenario, we
would look for such a co-location, which would be nearby, and would make
contract arrangements to put a sending radio onto that co-location area,
to send the signal to the base station, where the 80-account radio will
be mounted.
All such calculations and variations of this theme have long been worked
out, and are overcome at a price/budget point that would allow for the
80 customer accounts to be placed on the big radio.
In terms of scaling, thus, if $6,000,000.00 were achieved, for example,
the number of pieces of hardware would simply be multiplied to
accommodate that funding award, and so forth.
K. Any engineering, management or similar reports which have been
prepared or provided for external use by the issuer or by a principal
underwriter:
None.
L. Segment Data:
None required.
15
ITEM 5. DESCRIPTION OF PROPERTY
The location and general character of the principal plants, and other
materially important physical properties of the issuer and its
subsidiaries. If any such property is not held in fee or is held subject
to any major encumbrance, so state and briefly describe how held:
To the greatest extent possible, the Issuer seeks to avoid owning any
property in fee simple. Such expenses, often promoted by vendors of such
components as cell. towers, have resulted, historically, in both
unnecessary and unsustainable, and therefore, unprofitable results.
By contrast, the projects specifically seek a 'light footprint,'
wherever possible, to utilize existing assets of others, in order to
create the 'kit' system that is the successful business plan.
Put another way, the era of 'cable is coming to my farm any time now,'
has largely ended. Further, the era of cell. towers for rural areas, has
also largely ended. Those two self-limiting sectors never adjusted their
business models to suit the needs of rural America, and have,
accordingly, and for good and sound business reasons limited to their
narrow function, abandoned the rural sector.
This being said, the projects absolutely will rely on both fiber and cell
towers as crucial location, or co-location peering points and thus, among
the best starting points for any project is the location where the last
fiber strand ends, or where the last cell. tower stands.
In this regard, the projects will make every effort to avoid the
ownership of property, because, those sectors already own their own
assets. Where the base stations are needed, long term rental contracts
with building owners, or silo owners, or others, will be made.
16
ITEM 6 . DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES
A. DIRECTORS
Tony Ramos
Age: 60
Term of Service in Office: 2 years
Procedure for selection: board vote
Marc J. Hagemeier, M.A.
Age: 52
Term of Service in Office: 2 years
Procedure for selection: board vote
Eric W. Will, II
Age: 67
Term of Service in Office: 2 years
Procedure for selection: board vote
Harriet W. Grifo
Age: 63
Term of Service in Office: 2 years
Procedure for selection: board vote
17
Gary Horowitz
Age: 63
Term of Service in Office: 2 years
Procedure for selection: board vote
B. EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES
Tony Ramos, President
Marc J. Hagemeier, M.A., Vice President
Eric W. Will, II, Secretary
Harriet W. Grifo, Treasurer
Anthony J. Castaldo, IT Architect
Rex R. Helwig, Computer management consultant
Gary Horowitz, Project Leader & Liaison
Mark Bayliss, Broadband infrastructure, broadband Internet access
service, streaming video, and FCC consultant
18
C. FAMILY MEMBERS
There are no officers, directors or significant employees who have
family members in any such corresponding position, or who have any
controlling voting interest over such persons.
D. BUSINESS EXPERIENCE
Experience and principal occupations, employment and business
experience:
Tony Ramos
Founding concept company and current company president, 2009.
Leader. Third generation self-made entrepreneur. Member of the
elite professional political sector in Washington, D.C. of
originators of Congressional legislation. Veteran fundraiser.
Member of the elite professional political sector in Washington,
D.C., of originators of significant political policy/action
campaigns. Writer and Issuer of JOBS Act offerings, filings and
shares.
19
Marc J. Hagemeier, M.A.
Company pioneer, 2009. Personal wealth member. Entrepreneur.
Member of family-controlled conglomerate, of largest roadbed
gravel infrastructure company in Germany. Significant advisor
on matters of infrastructure and business. Accredited investor.
Master of Arts degree.
Eric W. Will, II
Company pioneer, 2009. Founding member. Self-made entrepreneur.
Work history with IBM. Venture capital organizer. Significant
advisor on matters of business finance and financing, with a
specialty in commercial lease financing. Accredited investor.
Harriet W. Grifo
Company pioneer, 2011. Rural library director, project liaison
and community organizer. Lobbyist for libraries as community
anchor institutions for expanded rural broadband.
Anthony J. Castaldo
Company pioneer, 2009. Designer of 52+ building dark fiber loop
infrastructure for large, rural library system. Library computer
manager, 20+ years. Technology expertise on infrastructure for
our company, including white space technology, broadband service
and connectivity, and wireless technology. Major designer of
company philanthropy program, Lend-A-Gadget, to place tablets,
like iPads, in rural libraries to check out like books.
20
Rex R. Helwig
Company pioneer. Founding member, 2009. Project leader and
liaison. Computer manager of large rural library system of 30+
buildings. Technology expert with Mr. Castaldo on issues of
broadband architecture, broadband service and implementation in
rural settings.
Gary Horowitz
Company pioneer. Founding member, 2009. Leader. Project organizer
and liaison, 'My First Car Club' broadband project - Greenfield
Park, NY. New York State Police. Volunteer Firefighter.
Commissioner, Ellenville Fire District (past Chief & Captain).
Director of Personnel and Board Member, Ellenville Rescue Squad.
Commissioner, Ulster County Medical Advisory Board. Commissioner,
Ulster County Ambulance Association. Commissioner, Ellenville
Zoning Board of Appeals. New York State Special Olympics
Coordinator. Emergency EMT Instructor, Sullivan (County, NY)
Community College. President, Save a Life Training Center.
Instructor, New York State Police Academy. A.A. business
administration.
Mark E. Bayliss
Company pioneer, 2010. Personal wealth member. Broadband
infrastructure, broadband Internet access service, streaming
video, and FCC consultant. Co-owner, rural broadband Internet
access service company. Venture capital veteran. Organizer and
implementer of streaming video company, 2015, trading on the
over-the-counter market. Writer of FCC policy and Executive
Orders. FCC Committee member and Chair of FCC Committees.
Accredited investor.
21
David J. Karre, M.B.A., M.L.S.
Company pioneer. Founding member, 2009. Leader. Former Chief
Executive Officer of large, rural library system in New York, 42
libraries. Project organizer and leader for rural city
'sidewalk Internet' company projects. Highly experienced local,
State and Federal lobbyist. Veteran fundraiser. Master of
Business Administration and Master of Library Science degrees.
E. Involvement in certain legal proceedings
1. Bankruptcy or State insolvency:
None;
2 . Criminal proceedings:
None.
ITEM 7 . REMUNERATION OF DIRECTORS AND OFFICERS
A. Annual remuneration:
None.
22
B. Proposed remuneration payments:
Until funding is achieved, the Board has forgone consideration of this
issue. As members are financially self-sustaining, the position of the
Board has been that the project comes first, and any remuneration later.
ITEM 8. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS
A. Voting securities and principal holders thereof:
1. by the three highest paid persons who are are officers
and directors of the Issuer:
as discussed above, there is no current remuneration for any officers
and directors;
2. all officers as a group:
same as above;
3. each shareholder who owns more than 10% of any class of the
issuer's securities, including those shares subject to outstanding
options:
same as above;
23
B. Table of ownership:
1. Pre-offering shares:
Consistent with the Amended Offering Statement(27), which is
incorporated by reference into the Amended Offering Circular, those
shareholders named therein all own shares in excess of 5% of shares
owned before the offering, and will own their same respective
percentages, according to the dilution formula, after the offering.
Thus, in order to achieve a Regulation A funding offering of
$20,000,000.00, the amount of 200,000 shares will be issued, and
then an amount that, with the calculation of the dilution formula,
will keep those shareholders at the same percentage before this
offering.
2. Control votes:
There are no persons who hold or share any voting power either
pre-offering, or post-offering;
3. 10% voting shares:
There are no persons who hold shares or the power to vote shares of
10% or more of any shares other than direct owners of those shares.
Footnotes:
(27) This Amended Offering Circular was uploaded onto EDGAR at the same time
as the applicant's reply letter to the Commission.
24
C. Non-voting securities and principal holders thereof:
All shares are common/voting shares;
D. Options, warrants, and rights:
None.
E. List all parents of the issuer, showing the basis of control and
as to each parent the percentage of voting securities owned or other
basis of control by its immediate parent, if any:
1. Parent:
Rural Broadband Company, Inc.;
2. Basis of control:
majority ownership of shares;
3 . Percentage of shares:
55%
25
ITEM 9 . INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
Brief description of any transactions during the previous two years or
any presently proposed transactions, to which the issuer or any of its
subsidiaries was or is to be a party, in which any of the following
persons had or is to have a direct or indirect material interest, naming
such person and stating his relationship to the issuer, the nature of
his interest in the transaction and, where practicable, the amount of
such interest:
A. Any director or officer of the issuer:
with the exception of ownership of shares, and serving as officers
and directors, none;
B. Any nominee for election as a director:
none;
C. Any principal securityholder named in answer to Item 8 A., above:
none;
D. If the issuer was incorporated or organized within the past three
years, any promoter of the issuer:
The Issuer's representative, Tony Ramos, is also the Issuer of JOBS
Act/Rule 506 securities, and notice of same was filed by the
uploading of Form Regulation D onto EDGAR upon the opening of that
opportunity, in September, 2013;
26
E. Any relative or spouse of any of the foregoing persons, or any
relative of such spouse, who has the same house as such person or who
is a director or officer of any parent or subsidiary of the issuer:
none;
F. Material transactions involving bank depositary of funds, transfer
agent, registrar, trustee under a trust indenture, or similar
services:
Material transactions involving banks include security steps taken by
the company with respect to co-signors on the accounts, as well as
such steps taken to comply with rights of succession upon the death,
disability or illness of one of the signers of the accounts. To this
end, the company originated its 'Office of Financial Management,'
with the sole purpose of appointing a trusted board member, and
person of personal wealth, Marc J. Hagemeier, M.A., as having login,
signing, and disbursement authority for the accounts upon such
contingency as to any signers.
Further, the board passed a resolution as to such transactions, to
be implemented by November, 2015, that requires the board to replace
the president and the office of the president as a signer on any
accounts. This measure was also taken for security purposes, in
order to avoid the president being placed in any coercive
situations with respect to said accounts.
Thus, the only 'transfer agent' would be Mr. Hagemeier.
With the exception of the Issuer's representative, Mr. Ramos, there
is no 'registrar' for any such material transactions.
27
There is no trustee under a trust indenture, or any other material
transactions.
There are no further 'similar services.'
G. Material transactions or a series of similar transactions,
including all periodic installments in the case of any lease or other
agreement providing for periodic payments or installments that does
not exceed $50,000:
none;
H. Where the interest of the specified person arises solely from the
ownership of securities of the issuer and the specified person
receives no extra or special benefit not shared on a pro-rata basis
by all of the holders of securities of the class:
none other than as to ownership of the shares and voting rights equal
to all shareholders;
I. Material indirect relationships:
1. from such person's position as a director of another corporation
or organization (other than a partnership) which is a party to the
transaction:
none;
2. from the direct or indirect ownership by such person and all other
persons specified in subparagraphs (1) through (5) above, in the
aggregate, of less than a 10 percent equity interest in another
person (other than a partnership) which is a party to the
transaction:
none;
28
3. where the interest of such person arises solely from the holding of
an equity interest (including a limited partnership interest but
excluding a general partnership interest) or a creditor interest in
another person which is a party to the transaction with the issuer or
any of its subsidiaries and the transaction is not material to such
other person:
none;
4. material underwriting discounts and commissions upon the sale of
securities by the issuer where any of the specified persons was or is
to be a principal underwriter or is a controlling person, or member,
of a firm which was or is to be a principal underwriter:
none, however, as amended Regulation A is a new industry, the Issuer
has yet been able to locate any such persons or companies who are
taking such business.
This said, the Issuer fully intends to engage such persons, once
they begin to enter into this sector, and will, therefore, amend
this subsection accordingly, or, if required by the rules, withdraw
this Regulation A filing and file a new one;
5. as to any transaction involving the purchase or sale of assets by
or to any issuer or any subsidiary, otherwise than in the ordinary
course of business, state the cost of the assets to the purchaser and,
if acquired by the seller within two years prior to the transaction,
the cost thereof to the seller:
none;
29
6. material transactions which involve remuneration from the issuer or
its subsidiaries, directly or indirectly, to any of the specified
persons for services in any capacity unless the interest of such
persons arises solely from the ownership individually and in the
aggregate of less than 10 percent of any class of equity securities
of another corporation furnishing the services to the issuer or its
subsidiaries:
none.
ITEM 10 . SECURITIES BEING OFFERED
A. Capital stock:
l. title of class:
common;
2. dividend rights:
common to all;
3. voting rights:
common to all;
30
4. liquidation rights:
common to all, subject to JOBS Act SEC rules on one-year resale
restriction;
5. preemptive rights:
none;
6. conversion rights:
subject to JOBS Act SEC rules;
7. redemption provisions:
to company treasury only, and only upon approval of the board;
8. sinking fund provisions:
none;
9. liability to further calls or to assessment by the issuer:
none;
B. debt securities are being offered:
none;
31
C. warrants, rights, or convertible securities:
none;
D. Balance sheet: See, Exhibit of Financial Statements as uploaded with
this Second Amended Offering Circular;
E. Statements of income, cash flows, and other stockholder equity: See,
Exhibit of Financial Statements as uploaded with this Second Amended
Offering Circular;
F. Financial Statements of Businesses Acquired or to be Acquired:
not applicable;
G. Pro Forma Financial Information:
Pursuant to Section 3. c. Part III of Amendments to Regulation A: A
Small Entity Compliance Guide, we provide the following additional
information for both 2014 and 2015:
l. underwriting agreements: none;
2. charter and by-laws: added as an exhibit to the reply to the
Commission's letter of August 25, 2015;
3. instrument defining the rights of securityholders: as contained
in the charter and bylaws;
32
4. subscription agreement: if by this is meant an exemplar of the
contract to purchase shares, then such is attached. If not, then
none;
5. voting trust agreement: none;
6. material contracts: none;
7. plan of acquisition: none;
8. reorganization: none;
9. liquidation: none;
10. succession: none;
11. escrow agreements: none;
12. consents: none;
13. opinion regarding legality: to be provided only upon the
Commission indicating that no further documents or responses are
needed. No attorney will provide such a letter prior to such notice
of compliance by the Commission;
14. 'testing the waters' materials: none;
15. appointment of agent for service of process: shown in item # 2,
on this list;
16. none other than those provided in the uploads for this non-public
review process.
33
CONCLUSION
Serious investors should first schedule an appointment with the Issuer's
representative, Tony Ramos, at the company's office, in Washington, D.C.
Upon any meeting and further inquiry, and signing of a confidentiality
statement, further project-specific information may be provided to such
investors.
Mr. Ramos may be contacted at:
202-321-7969 or at tramos@urbroadband.com
Thank you.
34
PART II AND III
5
mhrrbcfinancials.txt
FINANCIALS
MID-HUDSON REGION RURAL BROADBAND
COMPANY, INC. - FINANCIAL STATEMENTS(1)
Balance Sheet
For the Period 09/24/2014 to 09/24/2015
Assets(2)
Current Assets 2014(3) 2015
Cash $1,400.00(4) $50,000.00(5)
Accounts receivable 0 0
Inventory(6) 0 0
Prepaid expenses(7) 0 0
Footnotes:
(1) Current as of September 24, 2015.
(2) The company was formed specifically to comply with JOBS Act requirements
for Rule 504, Rule 506 and Regulation A offerings.
(3) Although the company was formed in order to comply with JOBS Act rules,
which went into effect only in September, 2013, parts of the project areas
in the company have been made a part of government procurement opportunity
applications since March, 2009, with the beginning of stimulus funding.
Thus, the actual project areas within the company have been in active
searches for funding for more than six years.
(4) From shares purchased by existing shareholder, officer, director and
Chief of the Office of Financial Management, Marc J. Hagemeier.
(5) The original balance, as of July 21, 2015, as reflected from Mr.
Hagemeier's investment as described throughout, was $50,000.00
(6) The company does not sell product, and thus would have no inventory.
(7) Prior to the formation of the company, so as to comply with JOBS Act
requirements, the project area that encopasses the company's reach,
together with other project areas, to include other applicant companies,
did achieve significant prepaid expense funding relative to the applications
for stimulus funding. All of this funding activity pre-dated JOBS Act, and
occurred largely in the years 2009-2010. That original funding allowed for
the initial development of the company's project area and initial design.
Page 1
2014 2015
Short-term
investments 0 0
Total current assets $1,400.00(8) $50,000.00
Fixed (long-term) Assets
Long-term investments 0 0
Property,
plant & equipment
(less accumulated
depreciation)(9) 0 0
Intangible assets 0 0
Total fixed assets 0 0
Other Assets
Deferred income 0 0
Other 0 0
Total Other Assets 0 0
Footnotes:
(8) For 2014 only.
(9) The company will make every effort to avoid owning property, such as land
sites for cell. towers, or buildings for base stations. Such property has
been shown to be of a loss nature for such projects, and, in addition, there
is already a well-developed industry for the cellular tower sector that
makes the ownership of property for the projects largely unnecessary.
Further, plant and equipment, for the most part, will be owned by either
the original equipment manufacturer and/or the distributor, and leased to
the company.
Page 2
2014 2015
Total Assets $1,400.00(10) 0
Liabilities & Owner's Equity
Current Liabilities
Accounts payable(11) 0 0
Short-term loans 0 0
Income taxes payable 0 0
Accrued salaries
& wages 0
Unearned income 0 0(12)
Current portion of
long-term debt 0
Dilution
mathematician 0
Footnotes:
(10) For 2014 only.
(11) There are no accounts payable by the company. RBC has, however consistent
with its corporate structure, expended funds to prepay for certain GIS
mapping of one of the project areas of one of the sister companies, STRRBC.
Other such development expenses for this project, called 'Hot Bing,' will
be ongoing. RBC
(12) MHRRBC is in the process of opening a self-directed equity account with
its bank, BB&T, to shift unneeded current cash to that account, to purchase
securities, and to secure a cash flow securitized line of credit. This
account should be opened and funded by November 1, 2015.
Page 3
2014 2015
Long-term Liabilities
Long-term debt 0 $50,000.00
Deferred income tax 0 0
Other 0 0
Total long-term liabilities 0 $50,000.00
Owner's Equity(13)
Owner's investment(14) $1,400.00 $50,000.00(15)
Retained earnings 0 0
Other 0 0
Total owner's equity 0 0
Total Liabilities
& Owner's Equity 0 $50,000.00
Footnotes:
(13) To the extent that this term describes the company. This as opposed to
shares owned by individuals.
(14) To say again, the project area did benefit from prepaid expense funding
that was provided in the beginning years for stimulus funding grant
applications.
(15) By Mr. Hagemeier.
Page 3
Mid-Hudson Region Rural Broadband Company, Inc.
Statement of Income
For the Period 09/24/2014 to 09/24/2015
Revenues
Products
Less Returns and Allowances
Services
Other
_____________
Total Revenue 0
_____________
Costs
Products
Services
Other 500
_____________
Total Cost 500
_____________
GROSS PROFIT -500
_____________
Operating Expenses
General and Administrative
Insurance 283
Non Recurring
Payroll Taxes
Rent 104.69
Research and Development
Salaries and Wages
Sales and Marketing
Utilities 80
Other 2,560
_____________
Total Operating Expenses 3,027.69
_____________
OPERATING INCOME -3,527.69
_____________
Non-Operating or Other
Interest Revenue
Interest Expense
Gain on Sale of Assets
Loss on Sale of Assets
Gain from Legal Action
Loss from Legal Action
Depreciation and Amortization
Other Gain
Other Loss
_____________
Total Non-Operating or Other 0
PRE-TAX INCOME -3,527.69
_____________
Taxes
Income Tax Expense
_____________
NET INCOME -3,527.69
_____________
Page 4
Mid-Hudson Region Rural Broadband Company, Inc.
Statement of Cash Flows
For the Period 09/24/2014 to 9/24/2015
Cash Flow from Operating Activities
Net Income -3,527.69
Increase in Other Current Assets (50,000)
______________
Cash Provided by/Used in Operating Activities -53,527.69
Cash Flow from Investing Activities
______________
Cash Provided by/Used in Investing Activities 0
Cash Flow from Financing Activities
_____________
Cash Provided by Financing Activities
______________
Net Increase in Cash -53,527.69
Beginning Cash Balance 0
______________
Cash at 09/24/2015 -53,527.69
______________
PART II AND III
6
mhrrbcsharek.txt
SHAREHOLDER'S PURCHASE AGREEMENT TEMPLATE
SHARE PURCHASE AGREEMENT
MID-HUDSON REGION RURAL BROADBAND COMPANY, INC.
1050 Connecticut Ave., NW
10th floor
Washington, DC 20036
202-321-7969
www.urbroadband.com
tramos@urbroadband.com
ANY SALE SHALL BE VOIDABLE BY THE PURCHASER WITHIN
TWO (2) DAYS OF THE CLOSING DATE OF THE SALE.
This Share Purchase Agreement, (the Agreement) is made and entered into this
???? day of ???, 2015, as follows:
A. THE PARTIES
1. Mid-Hudson Region Rural Broadband Company, Inc.,
the Seller - PARTY OF THE
FIRST PART,
and
??????, the Purchaser - PARTY OF THE SECOND PART.
B. THE INTENT OF THE PARTIES
2. The Seller is the owner of an aggregate of shares of common voting shares of
Mid-Hudson Region Broadband Company, Inc., which are being offered pursuant
to an exempt limited offering under amended ( Rule 506 or Regulation A), as
amended pursuant to the JOBS Act.
3. The Seller desires to sell shares and the Purchaser desires to purchase the
shares from the Seller.
C. CONSIDERATION AND PURCHASE
4. IN CONSIDERATION OF and as a condition of the parties entering into this
Agreement, and other valuable consideration, the receipt and sufficiency of
which consideration is acknowledged, the parties to this Agreement agree as
follows:
A. Purchase price: the Seller agrees to sell and the Purchaser agrees to
purchase all the rights, title, interest and property of the Seller in
the shares for an aggregate purchase price of one dollars ($100.00 U.S.)
per share. (the Purchase Price);
B. Number of shares to purchase: ??? ;
C. Amount due: a fixed sum of $???.00 will be payable upon closing of
this Agreement.
D. All payments will be in the form of a check, certified check, bank
draft, or electronic transfer.
D. REPRESENTATIONS AND WARRANTIES
5. Of the Seller:
A. The Seller is not bound by any agreements that would prevent any
transactions connected with this Agreement;
B. The Seller believes that the Purchaser is purchasing the shares for
investment purposes;
C. The Seller is the owner in clear title of the shares and the shares are
free from any lien, encumbrance, security interests, charges, mortgages,
pledges or adverse claim or other restriction that would prevent the
transfer of clear title to the Purchaser ;
D. There is no legal suit or action pending by any party, to the knowledge
of the Seller, that would materially affect this Agreement.
6. Of the Purchaser:
A. The Purchaser will not be recognized as an Issuer, Insider, affiliate
or associate of the Corporation, as defined or recognized under applicable
securities laws or regulations;
B. The Purchaser is purchasing the shares for investment purposes;
C. The Purchaser is not bound by any agreements that would prevent any
transactions connected with this Agreement;
D. There is no legal suit or action pending any party, to the knowledge of
the Purchaser, that would materially affect this Agreement.
E. CLOSING
7. The Closing (the Closing) of the purchase and sale of the shares will take
place on the ??? day of ????, 2015 (the Closing date) at the offices of the
Seller in Washington, D.C. only. At Closing, and upon the Purchaser paying
the Purchase Price, in full to the Seller, the Seller will deliver to the
Purchaser, through its issuing company, eShares, Inc., duly executed
electronic certificates of the shares.
F. EXPENSES
8. The Seller and the Purchaser agree to pay their own expenses in connection
with this Agreement.
G. FINDER'S FEES AND COMMISSIONS
9. The Seller and the Purchaser will not pay to any person a finder's fee or
commission in connection with this Agreement.
H. DIVIDENDS
10. Any dividends of the Seller prior to the Closing Date, shall become the
property of the Seller.
11. Any dividends of the Purchaser after the Closing Date, shall become the
property of the Purchaser.
I. VOTING RIGHTS
12. Any voting rights of the Seller prior to the Closing Date belong to the
Seller.
13. Any voting rights of the Purchaser after the Closing Date belong to the
Purchaser.
J. GOVERNING LAW
14. This contract shall be construed in accordance with the laws and
regulations governing securities in the State of
(put in state where incorporated).
K. MISCELLANEOUS
15. Time is of the essence in this Agreement.
16. This Agreement may be issued in counterparts, and signatures by fax, or as
affixed to a pdf., are acceptable to the Seller and to the Purchaser.
17. All warranties of the Seller and the Purchaser shall survive the Closing.
18. This Agreement will not be assigned by either the Seller or the Purchaser
without the express written consent of the other.
19. The Seller and the Purchaser agree that, if any part of this Agreement is
held invalid, then, to the extent possible under law, the remainder of the
Agreement shall remain in full force and effect.
20. The SEC Form Regulation D. for this offering may be viewed on the
website of Rural Broadband Company at www.urbroadband.com.
21. This Agreement contains the full Agreement between the parties.
L. SIGNATURES
IN WITNESS HEREOF, the Seller and the Purchaser have duly affixed their
signatures as proof of their acceptance of the terms and conditions of
this Agreement:
For the Seller:
By this writing in red, and by typing my name here:
Tony Ramos, I declare this to be my electronic
signature, as if I had signed this document with
a pen. (15 U.S.C. 96)
__________________________________________
Tony Ramos, President, CEO, Board Chair, & Issuer
Date: ?????, 2015, at Washington, D.C.
For the Purchaser :
___________________________________________
(name)
Date: ?????????
PART II AND III
7
mhrrbcbylaws.txt
BYLAWS, REGISTERED AGENT AND ARTICLES
BYLAWS OF
MID-HUDSON REGION RURAL BROADBAND COMPANY, INC.
FOR THE YEAR - 2014
WITHOUT OBJECTION AFTER SUBMISSION TO THE BOARD, duly organized
as of February 28, 2014:
1. Annual Meeting. The meeting of shareholders shall be held each year for the
election of directors and for the transaction of any business that may come
before the meeting. The Board of Directors shall designate the time and place
of meeting.
2. Special Meeting. Special meetings of the shareholders, for any purpose or
purposes, shall be held when directed by the chair of the board, the
president, the Board of Directors, or at the request of the holders of not
less than 1/10 of all outstanding shares of the corporation entitled to vote
at that meeting.
Page 1 of 8
3. Place of Meeting. The Board of Directors may designate any place, either
in or outside the District of Columbia, as the place of meeting for any
annual or special meeting of the shareholders. If no designation is made, the
place of meeting shall be the Corporation's principal office.
4. Action Without a Meeting. Action required or permitted to be taken at any
meetings of the shareholders may be taken without a meeting, without prior
notice, and without a vote if the action is taken by the shareholders of
outstanding shares of each voting group entitled to vote on it having not
less than the minimum number of votes with respect to each voting group that
would be necessary to authorize or take such action at a meeting at which
all voting groups and shares entitled to vote were present and voted.
To be effective the action must be evidenced by one or more written consents
describing the action taken, dated and signed by approving shareholders
having direct the number of votes of each voting group entitled to vote, and
delivered to the Corporation at its principal office in the District of
Columbia, or its principal place of business, or to the corporate secretary
or another officer or agent of the Corporation having custody of the book
in which proceedings of meetings of shareholders are recorded. No written
consent shall be effective to take corporate action unless, within 60 days
of the date of the earliest dated consent delivered in the manner required
by this section, written consents signed by the number of holders required
to take action are delivered to the corporation.
Any written consent may be revoked before the date of the Corporation
receives the required number of consents to authorize the proposed action.
No revocation is effective unless in writing and until received by the
Corporation at its principal office or its principal place of business,
or received by the corporate secretary or other officer or agent of the
Corporation having custody of the book in which proceedings of meetings
of shareholders are recorded.
Within 10 days after obtaining authorization by written consent, notice
must be given to those shareholders who have not consented in writing or
who are not entitled to vote on the action. The notice shall fairly
summarize the material features of the authorized action and, if the
action is one for which dissenters his rights are provided under the
articles of incorporation or bylaws, the notice shall contain a clear
statement of the right of dissenting shareholders to be paid the fare
value of their shares on compliance with applicable law.
Page 2 of 8
A consent signed as required by this section has the effect of a meeting
voting may be described as such in any document.
Whenever action is taken as provided in this section, the written consent of
the shareholders consenting or the written reports of inspectors appointed
to tabulate such consents shall be filed with the minutes of proceedings of
shareholders.
5. Notice of Meeting. Except as provided in the Corporation law of the
District of Columbia, written or printed notice stating the place, date, and
hour of the meeting and, in the case of a special meeting, the purpose or
purposes for which the meeting is called, shall be delivered not less than
10 nor more than 60 days before the date of the meeting, either personally
or by first-class mail, or by email, or at the direction of, the president
or the secretary, or the officer or other persons calling the meeting, to
each shareholder of record entitled to vote at the meeting. If the notice is
mailed at least 30 days before the date of the meeting, a class of
United States mail other than one that may affect its first-class status,
for example, priority mail, may be used.
If mailed, the notice shall be effective when mailed, even if it is mailed
postage prepaid incorrectly addressed to the shareholders address shown in
the current record of shareholders of the corporation.
When a meeting is adjourned to another time or place, it shall not be
necessary to give any notice of the adjourned meeting, if the time and place
to which the meeting is adjourned are announced at the meeting at which the
adjournment is taken. At the adjourned meeting, any business may be
transacted that might have been transacted on the original date of the
meeting. If, however, after the adjournment, the Board of Directors fixes
a new record date for the adjourned meeting, a notice of the adjourned
meeting shall be given as provided in this section to each shareholder of
record on the new record date entitled to vote at such meeting.
6. Waiver of Notice of Meeting. Whenever any notice is required to be given to
any shareholder, a waiver in writing signed by the person or persons entitled
to such notice, whether signed before, during, or after the time of the
meeting and delivered to the Corporation for inclusion in the minutes or
filing with the corporate records, shall be equivalent to the giving of such
notice. Attendance of the person at a meeting shall constitute a waiver of
(a) lack of or defective notice of the meeting, unless the person objects
at the beginning of the meeting to the holding of the meeting or the
transacting of any business at the meeting, or (b) lack of or defective
Page 3 of 8
notice of a particular matter at the meeting that is not within the purpose
or purposes described in the meeting notice, unless the person objects to
considering the matter when it is presented.
7. Fixing of Record Date. In order that the Corporation may determine the
shareholders entitled to notice of, or to vote at, any meeting of
shareholders or any adjournment thereof, or to express consent the
corporate action in writing without a meeting, or to demand a special
meeting, the Board of Directors may fix in advance, a record date, not
more than 70 days before the date of the meeting or any other action.
A determination of shareholders of record entitled to notice of, or to vote
at, the meeting of shareholders shall apply to any adjournment of the meeting
unless the board fixes and new record date, which it must do when the meeting
is adjourned to a date more than 120 days after the date fixed for the
original meeting If no prior action is required by the board, the record
date for determining shareholders entitled to take action without a meeting
is to date the first signed written consent is delivered to the Corporation
under section 6 of these bylaws.
8. Shareholders' List. After fixing a record date for a meeting of
shareholders, the Corporation shall prepare an alphabetical list of the
names of all its shareholders entitled to notice of the meeting, arranged by
voting group with the address of, and the number, class, and series, if any,
of shares held by, each shareholder. The shareholders' list must be available
for inspection by any shareholder for 10 days before the meeting or such
shorter time as exists between the record date and the meeting and
continuing through the meeting at the corporation's principal office at a
place identified in the meeting notice in the city where the meeting will be
held, or at the office of the corporation's transfer agent or registrar. Any
shareholder of the Corporation or the shareholder's agent or attorney is
entitled on written demand to inspect the shareholders' list during
regular business hours and at the shareholder's expense, during the
period in which it is available for inspection.
The corporation shall make the shareholders' is list available at the meeting
of shareholders, and any shareholder or shareholder's agent or attorney is
entitled to inspect the list at any time during the meeting or any
adjournment.
Page 4 of 8
9. Voting Per Share. Except as otherwise provided in the articles of
incorporation or by law, each shareholder is entitled to one vote for each
outstanding share held by him, her or it on each matter voted at a
shareholders meeting.
10.Voting of Shares. Shares standing in the name of another corporation,
domestic or foreign, may be voted by the officer, agent, or proxy designated
by the bylaws of the corporate shareholder or, in the absence of any
applicable law, by a person or persons designated by the Board of Directors
of the corporate shareholder. In the absence of any such designation, or in
case of conflicting designation by the corporate shareholder, the chair of
the board, the president, any vice president, the secretary and treasurer
of the corporate shareholder, in that order, shall be presumed to be
fully authorized to vote the shares.
Administrators, executors, or guardians, may vote as personal representative
or Conservator, either in person or by proxy, without a transfer of such
shares into his or her name. The trustee, either in person or by proxy, may
vote shares standing in the name of a trustee but no trustee shall be
entitled to vote shares held by him or her without a transfer of such shares
into his or her name or the name of his or her nominee.
Shares held by, or under the control of, a receiver, a trustee in bankruptcy
proceedings, or an assignee for the benefit of creditors may vote without
the transfer into his or her name.
If shares stand of record in the names of two or more persons, whether
fiduciaries, members of the partnership, joint tenants, tenants and,
tenants by the entirety, or otherwise, or if two or more persons have the
same fiduciary relationship respecting the same shares, unless the
secretary of the Corporation is given notice to the contrary, and is
furnished with a copy of the instrument or order appointing them or creating
a relationship wherein it is so provided, then, with respect to voting, the
voting shall have the following effect: (a) if only one of the persons votes,
in person or by proxy, that act binds all; (b) if more than one votes, in
person or by proxy, the act of the majority so voting binds all; (c) if more
than one votes, in person or by proxy, but the voters evenly split on a
particular matter, each faction is entitled to vote the share or shares in
question proportionately; or (d) if the instrument or order so filed shows
that any such tenancy is held in equal interest, a majority or a vote evenly
split for purposes hereof shall be a majority or vote evenly split in
interest. The principles of
Page 5 of 8
this paragraph shall apply, as far as possible, to the execution of proxies,
waivers, consents, or objections and for the purpose of ascertaining the
presence of a quorum.
11.Proxies. Any shareholder of the Corporation, or other person entitled to
vote on behalf of a shareholder under these bylaws, or attorney-in-fact for
such persons, may vote the shareholder's shares in person or by proxy. Any
shareholder may appoint a proxy to vote or otherwise act for him or her by
signing an appointment form, either personally or by attorney-in-fact. An
electronic transmission shall be deemed a sufficient appointment form.
An appointment of a proxy is effective when received by the Secretary of the
Corporation, or such other officer or agent authorized to tabulate votes,
and shall be valid for up to 11 months, unless a longer period is
expressly provided in the appointment form.
The death or incapacity of the shareholder appointing a proxy does not affect
the right of the Corporation to accept the proxy's authority unless notice of
the death or incapacity is received by the Secretary or other officer or
agent authorized to tabulate votes revokes the proxy's authority under
the appointment.
An appointment of a proxy is revocable by the shareholder, unless the
appointment form conspicuously states that it is irrevocable, and the
appointment is coupled with an interest.
12. Quorum. Shareholders entitled to vote as a separate voting group may take
action on the matter at a meeting, only if a quorum of those shares exists
with respect to that matter. Except as otherwise provided in the articles
of incorporation or bylaws, the majority of the shares entitled to vote on
the matter by each voting group, represented in person or by proxy, shall
constitute a quorum at any meeting of shareholders.
Once the shareholder is represented for any purpose at a meeting, he/she/it
is deemed present for quorum purposes for the remainder of the meeting, and
for any adjournment of that meeting, unless a new record date is, or must
be, set for that adjourned meeting.
Page 6 of 8
13. Corporate mission to include community anchor institutions that serve
vulnerable populations. The Corporation, through its Board, Officers and
Shareholders, agrees that making provision for the expansion of voice/data/
streaming video infrastructure and capacity as well as for efforts to expand
user adoption rates to rural community anchor institutions that serve
vulnerable populations, on a per project basis, furthers the goals of the
corporation.
14. Corporate Giving. The Corporation, through its Board, Officers and
Shareholders, agrees that, as a further part of its mission, charitable
giving, either by in-kind products and services, or by financial
contributions to the Future Farmers of America, or its Foundation,
Organization, and State and Local Chapters, on a per project basis, furthers
the goals of the corporation.
15. Officers and Directors to be held harmless. Any officers, directors and
shareholders shall be held harmless from any matters concerning the
Corporation, including any monies owed to any of the founders, or to any
creditors, or to any persons or corporations for any activities prior to
said date.
16. Corporate Mission. The corporate mission is limited to fulfilling the
operations of any project that is originated, organized, developed and funded
by the parent company, Rural Broadband Company, Inc.
17. Dilution of shares. The following formula shall apply with respect to the
dilution of, and therefore that addition of shares to existing shareholders:
Dilution, shall be determined by subtracting the maximum sales
commissions and expenses set forth in the prospectus from the gross
proceeds of the offering and adding the net worth prior to the
offering. Divide this sum by the total number of shares to be
outstanding at the conclusion of the offering to determine book value.
Subtract the book value from the proposed offering price and divide
the result by the proposed offering price to arrive at the percentage
of dilution. For the purpose of calculating "dilution" or
"book value", intangible assets such as patents, copyrights,
franchises, trademarks, operating rights and goodwill are deducted
from total assets.
Dilution Formula:
NP = Gross Proceeds minus Maximum Sales Commissions and Expenses
NW = Net Worth prior to the offering
Page 7 of 8
TS = Total Number of shares to be outstanding after a successful
offering
BV = Book Value
OP = Offering Price
Example:
NP + NW
________ = BV
TS
OP - BV
_________ = Dilution
OP
UNANIMOUSLY ADOPTED BY THE BOARD ON the 28th day of February, 2013.
Certificate of Incorporation
Page 8 of 8
PART II AND III
8
mhrrbclegalityopinion.txt
LEGALITY OPINION
Oluwaseun O. Ajayi, Esquire
P.O. Box 100203
Arlington, VA 22210
202-682-1661
o.o.ajayi@outlook.com
September 29, 2015
Mid-Hudson Region Rural Broadband Company, Inc.
1050 Connecticut Avenue, N.W.
10th Floor
Washington, D.C. 20036
Re: JOBS Act/ Regulation A, as amended
Company: Mid-Hudson Region
Rural Broadband Company, Inc.
Form 1-A - Second Amended Version
SEC File No.: 024-10459
Dear Sir or Madam:
At your request, I have examined the the online Form 1-A of Mid-Hudson Region
Rural Broadband Company, Inc., a New York corporation (the "Company"),
together with the documents and exhibits which accompany this letter, to be
uploaded on EDGAR on September 30, 2015, in connection with the
qualification and offering of up to $20,000,000.00 aggregate principal
amount of 200,000 shares of common stock (the "securities") offered by
the Company.
The securities will be purchased and sold pursuant to a Share Purchase
(the "Investor Agreement") and a Form of Shares Purchase Agreement
(the "SP Agreement") in the forms set forth as exhibits to the Second
Amended Form 1-A. and to be entered into between the Company and each
purchaser of the securities ("Purchasers").
In rendering this opinion, I have examined such records and documents as I
have deemed necessary in order to render the opinion set forth herein,
including the following:
(1) The Articles of Incorporation of the Company, filed as an exhibit
to the Form 1-A upload;
Mid-Hudson Region Rural Broadband Company, Inc.
Oluwaseun O. Ajayi, Esquire
P.O. Box 100203
Arlington, VA 22210
202-682-1661
o.o.ajayi@outlook.com
(2) The Bylaws of the Company, also uploaded with Form 1-A;
(3) The Second Amended Offering Statement, the Second Amended Offering
Circular, and the exhibits filed as a part thereof or incorporated therein
by reference, as amended;
(4) Letters of the United States Securities and Exchange Commission
("SEC"), requesting further information, dated July 24, 2015, and
August 25, 2015;
(5) The Company's responses to the SEC letters;
(6) A Certificate of Incorporation issued by the Secretary of State of the
State of New York, dated October 1, 2013, stating that the Company is
qualified to do business and in good standing in accordance with the laws of
the State of New York, along with the Company's 2015 Annual Registration with
the Secretary of State of the State of New York confirming that the Company
remains in good standing.
In reviewing documents for this opinion, I have assumed and express no opinion
as to the authenticity and completeness of all documents submitted to me,
including the conformity of all copies to the originals, and the legal
capacity of all persons or entities executing the documents.
Additionally, in rendering the opinions set forth below, I have assumed that:
(i) each purchaser of the securities has the legal capacity or power, corporate
or other, to enter into and perform all such obligations under the Share
Purchase Agreement;
(ii) any and all representations of the Company are correct as to questions
of fact;
(iii) unless otherwise exempt, the securities will be properly qualified in
each State in which the securities are to be offered or sold in accordance
with the laws and regulations of those states, and;
Mid-Hudson Region Rural Broadband Company, Inc.
Oluwaseun O. Ajayi, Esquire
P.O. Box 100203
Arlington, VA 22210
202-682-1661
o.o.ajayi@outlook.com
(iv) the public offer or sale of the securities shall be exempt under Section
3(b) of the Securities Act of 1933 from the registration requirements of the
Securities Act.
This opinion is qualified by, and is subject to, and I render no opinion with
respect to, the following limitations and exceptions to the enforceability
of the securities:
(a) the effect of the laws of bankruptcy, insolvency, reorganization,
arrangement, moratorium, fraudulent conveyance, and other similar laws
now or hereafter in effect relating to or affecting the rights and
remedies of creditors;
(b) the effect of general principles of equity and similar principles,
including, without limitation, concepts of materiality, reasonableness,
good faith and fair dealing, public policy, and unconscionability, and the
possible unavailability of specific performance, injunctive relief, or
other equitable remedies, regardless of whether in a proceeding in equity
or at law;
(c) the effect of laws relating to banking, usury, or permissible rates of
interest for loans, forbearances or the use of money;
(d) the effect of provisions relating to indemnification, exculpation, or
contribution, to the extent such provisions may be held unenforceable as
contrary to federal or state securities laws, and;
(e) the financial condition of the Company.
I render this opinion only with respect to, and express no opinion herein
concerning the application or effect of the laws of any jurisdiction other
than, the existing laws of the United States of America and of the State of
New York, and, solely with respect to whether the securities are the valid
and binding obligations of the Company, and the existing laws of the State
of New York without regard to principles or laws regarding choice of law or
conflict of laws.
Mid-Hudson Region Rural Broadband Company, Inc.
Oluwaseun O. Ajayi, Esquire
P.O. Box 100203
Arlington, VA 22210
202-682-1661
o.o.ajayi@outlook.com
This opinion is limited to laws, including rules and regulations, in effect on
the date of effectiveness of electronic Form 1-A, as well as the documents
that are uploaded by the Company in support of such upload as of the date of
this letter.
I am basing this opinion on my understanding that, prior to issuing any
securities, the Company will advise me in writing of the terms thereof and
other information material thereto, and will file such supplement or
amendment to this opinion, if any, as I may reasonably consider necessary or
appropriate with respect to such securities.
I, also, assume that the Company will timely file any and all supplements or
amendments to Form 1-A, and exhibits as are necessary to comply with
applicable laws in effect from time to time; however, I undertake no
responsibility to monitor the Company's future compliance with applicable
laws, rules, or regulations of the SEC or other governmental body.
Based upon the foregoing, I am of the following opinion that:
(1) the Company is a corporation validly existing, and in good standing,
under the laws of the State of New York;
(2) the Company has the power to create the obligation covered by the the
uploaded Form 1-A, and the Second Amended Offering Statement the Second
Amended Offering Circular, and the exhibits to the upload that accompanies
this letter, and has taken the required steps to authorize entering into
the obligation covered by Form 1-A and the said documents and exhibits
that accompany this letter;
(3) the securities have been duly authorized by the Company; and
(4) the securities, when paid for by and delivered to the Purchasers in
accordance with the terms of the Shares Purchase Agreement, will be
valid, binding obligations of the Company in accordance with the terms
therein.
Mid-Hudson Region Rural Broadband Company, Inc.
Oluwaseun O. Ajayi, Esquire
P.O. Box 100203
Arlington, VA 22210
202-682-1661
o.o.ajayi@outlook.com
This opinion is intended solely for use in connection with the issuance and
sale of the securities subject to the Form 1-A and the documents and exhibits
uploaded with this letter, and is not to be relied upon for any other
purpose.
This opinion is based on facts and law existing as of the first date written
above and rendered as of such date.
Specifically, and without implied limitation, I assume no obligation to advise
the Company of any fact, circumstance, event, or change in the law subsequent
to the date of effectiveness of the Form 1-A and the documents and exhibits
that are uploaded with this letter. Further, I assume no obligation for
compliance with any continuing disclosure requirements that may be
applicable, or of any facts that may thereafter be brought to my attention,
whether or not such occurrence would affect or modify any of the opinions
expressed herein.
I consent to the use of this opinion as an exhibit to the Amended Form 1-A,
and the documents and exhibits thereto, and to all references to me, if any,
in the said Form or documents or exhibits constituting a part thereof, and
any amendments thereto that were uploaded with this letter.
Sincerely yours,
Oluwaseun O. Ajayi, Esquire
Digital signature
Oluwaseun O. Ajayi
Oluwaseun O. Ajayi, Esq.
P.O. Box 100203, Arlington, VA 22210| 202-682-1661| o.o.ajayi@outlook.com
Mid-Hudson Region Rural Broadband Company, Inc.
CORRESP
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Mid-Hudson Broadband Co
NY
2013
0001644516
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46-3895918
1
9
1050 CONNECTICUT AVE., NW
10TH FLOOR
WASHINGTON
DC
20036
202-321-7969
Tony Ramos
Other
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Mid-Hudson Region Rural Broadband Company, Inc.
common/voting
588238
0
58823 to shareholders for services. For the full list of shareholders and an explanation of services, please see pp. 14-23 of the Second Amended Offering Statement that has been uploaded this day with this Form 1-A.
Regulation A, as amended