Rare Medium Divests Fresh Air Solutions
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Rare Medium Corp. completed its plan to transform itself into a pure Internet company by selling its majority interest in air conditioning business Fresh Air Solutions (FAS) to an FAS management group.
The management group paid Rare Medium $1.5 million, including cash of $1.125 million and a note for $375,000, and relieved Rare Medium of all the liabilities of FAS of approximately $7.0 million.
New York City-based Rare Medium retained a 40% passive interest in FAS, but Rare Medium will have no future operational or funding responsibilities for FAS, which reported losses in excess of $3.5 million during the first six months of 1998.
"The true value of this transaction significantly exceeds the tangible proceeds," said Glenn S. Meyers, president and CEO. "This sale enables us to devote 100% of Rare Medium's energies to solidify its position as a leading Internet service provider. Rare Medium and FAS can now focus completely on their own strengths, increasing the probability of each separate business being successful."