VANCOUVER, British Columbia (DJ) — USA Video Corp. of Century City and Rochester Telephone Corp. have finalized a definitive agreement to test-market true video and information services on-demand to customers using a combination of fiber-optic lines and USA Video technology.
In a press release, the companies said they will install and operate a minimum 100-home field test in Rochester, N.Y., later this year.
Rochester Telephone will act as USA Video’s exclusive marketing agent for all local phone exchange companies in the U.S. and Ontario, Canada, excluding the Regional Bell Operating Companies.
Rochester Telephone has made a $ 1 million investment in USA Video, consisting of a $ 250,000 purchase of 65 cents units and a convertible loan of $ 750,000. The loan funds will be held in escrow and will be converted into units priced at 80 cents each, subject to USA Video meeting certain technological milestones prior to the start of the field test, the companies said.
Each unit consists of a common share and share purchase warrant exercisable at $ 1 a share until March 31, 1994.