In early September I spent a week in northeastern Arizona with Linda Brimhall, who founded SynKroMAX Internet. They are located in the town of Taylor in Navajo County and is one of LocaLoop’s newest and rapidly growing customers.
All of northeastern Arizona, which includes several large Indian Reservations, is woefully lacking in access to high-speed broadband Internet. LocaLoop’s cloud based system is the ideal solution for that problem. Most of the towns and cities located there today were founded by Mormon’s in the 1800’s. And many of these towns were named after the founding person or members of the Mormon leadership. John Taylor was one of the early Mormon leaders following the settlement of the Church in Salt Lake City. The town of Taylor was named after him. Snowflake, which is adjacent to Taylor, was founded by William J. Flake. More Mormon settlers began to move from Utah to the new settlement. Later, Erastus Snow visited the settlement and a few days after he arrived he sent a message back to Salt Lake City saying that he was naming the town Snow Flake and today it is known as Snowflake.
I had two reasons for going there. One was to meet Linda Brimhall, a true entrepreneur who is executing her business plan perfectly. The second reason was to meet some local accredited investors who might be interested in investing in LocaLoop’s current private offering. Attached is a copy of an article from the Tuesday, April 12, 2016 Business Section of the NavApache Independent Newspaper about Linda and her new high-speed, broadband Internet business which is powered by LocaLoop.
I am glad that I made the trip and I learned a lot about LocaLoop’s business model and discovered how really simple it is. I also saw how it runs a complete broadband Internet service business for the operator with just a few people. Note the attached photo that I took of the business itself. In the photo are Linda, her technology expert Mel Larson (the taller guy), his assistant Michael Davis and LocaLoop’s Internet network box. There is also a photo of the first antenna located just outside the office that is connected to the box. That small team and LocaLoop’s “business in a box” can grow well into 2017 and beyond. What is really remarkable about what she is doing is that her first tower became live in March and LocaLoop is assisting her as she is installing her fourth tower right now that will start offering subscriber access in October. She already has 50 customers lined up for the new tower. She is on track to have 200 subscribers by the end of 2016. She is planning to hire another office person to help her manage the growing number of calls from people who want to sign up for the service now or will do so when she has a new tower site that covers the new subscribers location. Her overall business plan is to add at least 4, and maybe more, additional towers in 2017. Her current plan today is to have a total of 15 towers operating by the end of 2018. Also attached is a site map for the 15 towers. She is also in the process of filing for grants including some that may be available for 4G wireless broadband Internet connections on specific Indian Reservations.
One of the people Linda and I met with asked me if local investors should invest in her business or in LocaLoop. I told him that, if she needed additional capital then they should consider investing in her business because such an investment is really an investment in their own community. I also told them that in either case they should consider investing in LocaLoop because LL’s cloud technology and wireless expertise is what is essential to empowering rural entrepreneurs to bring an affordable, 4G, wireless Broadband Internet service to their own underserved area. I later reviewed Linda’s business plan and told her that, with the assets she has, it appears to me that she doesn’t need to raise any additional capital through 2017. If she does need additional capital beyond that time frame it would be reasonable to assume that her business then would be valued much higher which would reduce the percentage dilution of her ownership. She seemed to be relieved to know that she does not need to raise any additional capital today. And, her operating statement indicates that her business will be profitable enough at the end of 2016 to start paying her a reasonable salary.
LocaLoop’s numbers of customers and revenues are growing fast. They have had 4 consecutive months of profits and, as of the end of August, they had their first ongoing, annual profit. In addition, their monthly recurring revenues from subscriber fees are growing. In August 2015 LocaLoop’s recurring subscriber revenues amounted to $1187 and their August 2016 subscriber revenues totaled $15,452. They now project to become a sustaining business by the end of 2016.
LocaLoop is seeking to raise capital to cover their growing vendor equipment expense and to keep up with the growing demand from underserved areas all over the U.S. They have filed an S.E.C. Form D Private Offering for up to $2 million in 8% convertible notes. This is the ideal time for qualified investors to consider making an investment in LocaLoop. Please let me know if you want me to arrange to have them send you the information on how you can participate in the current offering that is being handled through Broker Bank Securities, Inc. which is a FINRA Registered Firm –CRD #130116.
Attachment: Snowflake Article
Attachment: Az Tower sites