WINNIPEG and VANCOUVER, May 4 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG) is pleased to announce that it has now been issued broadband radio service (BRS) licenses by Industry Canada for the Victoria and Kelowna, British Columbia regions (the "Victoria and Kelowna BRS Licenses").
Further to the press release of the Company dated March 26, 2010 announcing the execution of 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, and also further to the press releases of the Company issued on April 14, 2010 and April 16, 2010 announcing the closing of the Sale in respect of the Company's Vancouver BRS license, the issuance of the Victoria and Kelowna BRS Licenses represents the satisfaction of another significant condition to the completion of the Sale.
Upon the filing of an application to Industry Canada to transfer the Victoria and Kelowna BRS Licenses to Inukshuk, the subsequent closing in respect of the Victoria and Kelowna BRS Licenses will be complete. The portion of sale proceeds payable by Inukshuk to the Company at the closing is $12.8 million of the aggregate sale proceeds of $80 million, $42.4 million of which the Company has already received. The amount remaining following the closing in respect of the Victoria and Kelowna BRS Licenses and the recently completed closing of the Company's Vancouver BRS license is $24.8 million, which shall be paid upon completion of certain conditions, including all requisite regulatory approvals.
The Canadian spectrum licenses to be sold under the Agreement represents 22.36% of the Company's total spectrum holdings. 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. The closing of the Sale transactions are not subject to the receipt of any additional approvals by Inukshuk.
About Craig Wireless Systems Ltd.:
Craig Wireless Systems 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 the provinces of Manitoba and British Columbia, Canada, Riverside County in Southern 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 4G-based applications, including portable and mobile applications.
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; T. Boyd Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (760) 346-3282, email: firstname.lastname@example.org