WINNIPEG, June 8 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG) is pleased to announce a special dividend of forty cents ($0.40) per share on the Company's multiple voting shares and subordinate voting shares (the "Special Dividend").
As announced by the Company in a press release dated March 26, 2010, the Company entered into a definitive agreement (the "Agreement") for the sale (the "Sale") of the Company's Canadian spectrum assets to Inukshuk Wireless Partnership ("Inukshuk"), a partnership of affiliates of Rogers Communications and Bell Canada, for aggregate proceeds of $80 million. To date, the Company has received $55.2 million of the sale proceeds, with the remainder of the proceeds to be paid by Inukshuk upon completion of certain conditions, including all requisite regulatory approvals.
As a result of the exceptional financial performance of the Company achieved through the Sale, the Company has repaid all of its long term debt and has now determined to pay the Special Dividend to its shareholders. The Special Dividend will be paid on July 6, 2010 to shareholders of record at the close of business on June 22, 2010 and will be treated as an eligible dividend within the meaning of such term in section 89(1) of the Income Tax Act (Canada).
"The Company is very pleased to declare this Special Dividend," said T. Boyd Craig, founder and co-CEO of Craig Wireless Systems Ltd. Mr. Craig added: "The dividend rewards the patience of our shareholders and enables them to share in the Company's successful transaction with Inukshuk."
Following completion of the Sale, Craig Wireless will continue to own spectrum, or operate on leased spectrum, in the United States, Greece, Norway, and New Zealand.
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, 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