RANCHO MIRAGE, CA, Dec. 6, 2015 /CNW/ - Craig Wireless Systems Ltd. (the "Company") (TSX-V: CWG) today announced that Spark New Zealand Trading Limited ("Spark") has entered into definitive agreements to purchase Radio Spectrum Management Right 396 from Craig Wireless New Zealand Spectrum Operations Limited, a wholly-owned subsidiary of the Company, for a purchase price of NZ$4.5 million and Radio Spectrum Management Right 415 from Woosh Wireless (NZ) Limited, a New Zealand corporation of which the Company owns 75%, for a purchase price of NZ$4.5 million (the "Sales Transactions"). The aggregate purchase price of NZ$9 million is subject to goods and services tax, and is payable by Spark in cash.
In addition to customary closing conditions, completion of the Sales Transactions are subject to all necessary regulatory approvals, including consent from the Ministry of Business, Innovation and Employment.
About Craig Wireless Systems Ltd.
The Company and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.3 GHz, 2.5 GHz, 2.6 GHz or 3.5 GHz bands in New Zealand, Riverside County in Southern California, United States and in Greece. The CWS Group also has spectrum interests in Norway. Spectrum in these ranges is effective for delivery of point-to multipoint signals, possesses robust bandwidth capability and supports emerging 4G-based applications, including portable and mobile applications.
On November 3, 2015, the Company announced that it was in receipt of a demand for payment by its secured creditors (the "Creditors"), who collectively hold outstanding loans in the aggregate principal amount of US$8,930,576.69, plus certain fees and expenses. The Company does not currently have sufficient cash on hand to make payment in full in respect of the Creditors' demand.
Notice on Forward-looking statements:
This release includes forward-looking statements regarding the Company and the CWS Group. Such statements are based on management's current expectations. The forward looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting the CWS Group and its business. Not to limit the generality of the foregoing, the forward-looking information set forth in this news release is subject to various risks and other factors including our inability to complete the Sales Transactions resulting from the failure to satisfy conditions of closing, or otherwise. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Craig Wireless does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Craig Wireless Systems Ltd.
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