September 13, 2001
I know with your departure from Enron tomorrow and with the loss of friends and business associates on Tuesday you have much on your mind. For those reasons, I hesitate to contact you now, but realize from my personal experiences that this may be the very time at which you wish to consider opportunities. I have briefly outlined below my present venture. I am asking energy industry acquaintances for assistance in identifying prospective investors. In your case, you may wish to consider an investment and, if you desire further involvement, the company will offer you one of its five Board seats. I wish you well in your future personal and professional endeavors.
I am CEO of Genscape, Inc., a two-year old, $3 million annualized revenue, energy information provider, serving Fortune 500 companies. Genscape has delivered and deployed proprietary technology making it the exclusive provider of real-time online power generating and transmission operating information. Energy traders have shown great interest in Genscape's information with five of the nation's largest energy traders subscribing to the service at annual prices of $500,000 or more. With only $200,000 in equity investment to date, Genscape has developed its proprietary technology, organized a 27 person staff, completed one third of its monitor deployment and generated strong customer demand. It's a great start upon which to base expansion.
Genscape and Vectren Energy Solutions, have reached an agreement as to the terms for issuance of $3 million of Series A Preferred Stock of which Vectren will buy half. A copy of the term sheet signed is attached. Vectren was the principal investor in EnTrade Corporation, of which I was a founder, and realized a significant return in EnTrade's strategic sale to Tenneco Energy. Genscape has also received strong interest from a financial investor for $500,000. Due diligence and closing documents are substantially complete and this transaction is ready to close by late September.
Genscape is seeking the remaining $1 million of investment capital required and will accept $100,000 minimum investments. I need your assistance during the next few days to identify individuals or businesses that may wish to make such an investment. I will contact them personally, once you provide me their contact information.
I plan to be in Houston on Friday, September 14, and at least one day during the week of September 17 and can meet with prospective investors personally, if they desire.
David A. Doctor
Chief Executive Officer
105 Daventry Lane, Suite 300
Louisville, Kentucky 40223
- Genscape-091101 Vectren Term Sheet Final.doc