WINNIPEG, Jan. 14 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG), today released its financial results for the first quarter ended November 30, 2009. All dollar figures are reported in Canadian currency. The Company also announced a new $1.5 Million loan from Manalta Investment Company Ltd.
First Quarter Results Highlights:
The Company is continuing to wind down its legacy pre-WiMAX operations in Winnipeg, Manitoba and Vancouver, British Columbia in preparation for the launch of its new WiMAX networks in Vancouver, British Columbia and Palm Springs, California. As a result, the Company's revenue from its Manitoba and British Columbia pre-WiMAX legacy operation declined from $404,636 in the fourth quarter ended August 31, 2009 to $383,720 in the first quarter ended November 30, 2009.
The net loss for the first quarter ended November 30, 2009 was $4,084,583 ($0.08 per share) compared to $3,216,100 ($0.07 per share) for the fourth quarter ended August 31, 2009.
The detailed financial statements for the first quarter ended November 30, 2009, the management discussion and analysis of financial condition and results of operations in relation thereto and the Company's annual information form dated November 27, 2009 are all available for viewing on the SEDAR website at www.sedar.com
New Financing Arrangement:
The Company has entered into a financing arrangement with Manalta Investment Company Ltd. ("Manalta"), a company controlled by Mr. T. Boyd Craig and Mr. J. Drew Craig, the Co-Chief Executive Officers of the Company, and the Company's majority shareholder. Pursuant to the arrangement with Manalta, Manalta has agreed to lend the sum of $1.5 million to the Company for a one year term (the "Loan"). Manalta has been issued warrants to acquire 750,000 subordinate voting shares of the Company (the "Warrants") in connection with the Loan. Each Warrant is exerciseable for a period of 24 months into one subordinate voting share at an exercise price of $0.20, being the weighted-average trading price of the subordinate voting shares on the Toronto Stock Exchange ("TSX") for the five trading days preceding the date of TSX conditional approval of the Loan transaction. The Loan is to be secured by a general security agreement issued by the Company and secured guarantees of certain of the subsidiaries of the Company.
The Loan was approved by the independent members of the Company's board of directors of the Company and the Company's Compensation, Corporate Governance and Nomination Committee.
"We continue to be excited about the current markets in which the Company operates. The Loan from Manalta underscores our continued commitment to the Company and to the development of its spectrum assets and 4G strategy" said T. Boyd Craig.
About Craig Wireless Systems Ltd.
Craig Wireless and its affiliates (collectively, the "CWS Group"), offer a broad range of telecommunications services, including, broadband Internet access, television programming delivery, 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 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Manitoba and British Columbia, Canada, the Coachella Valley region, California, United States and in Greece. The CWS Group also has spectrum interests in Norway and New Zealand. Spectrum in these ranges is effective for delivery of point-to-multipoint signals, possesses robust bandwidth capability and supports emerging WiMAX-based and other fourth generation (4G) applications, including portable and mobile applications. Additional information about Craig Wireless is available at www.craigwireless.com.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Notice on forward-looking statements
This release includes forward-looking statements regarding Craig Wireless and its business. 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 Craig Wireless and its business. 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.
SOURCE Craig Wireless Systems Ltd.
For further information: For further information: J. Drew Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2, email: email@example.com; Greg Bewsh, Director of Investor Relations, Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 1, email: firstname.lastname@example.org