Stock Symbol: ICH
MONTREAL, April 2 /CNW Telbec/ - Intercable ICH Inc. ("Intercable"), a Canadian telecommunications company that seeks broadband telecommunications opportunities in the international market, announced today that Intercable Africa Ltd. ("ICA") obtained a temporary overdraft bridge facility (the "Bridge Facility") with The Mauritius Commercial Bank Ltd (a bank affiliated to MCB Equity Fund, a shareholder and insider of Intercable), as lender, for a facility of two million Euros (approximately $2.75 million).
The Bridge Facility is repayable on May 31, 2010, bears interest at a rate equal to the one-month LIBOR plus 7% and is secured by a first rank security on all the assets of ICA. A first drawdown of 500,000 Euros (approximately $687,000) has been received by ICA. A second drawdown of 1,500,00 Euros (approximately $2,061,000) is anticipated to be received prior to the end of April 2010 upon completion of certain conditions, including the finalization of a first ranking priority on certain assets of ICA, no adverse material changes with respect to the operations of ICA and other standard conditions for this type of loan. The Bridge Facility will enable ICA and Intercable to pursue their operations until May 31, 2010 and discussions with investor groups in the context of a long or medium-term financing.
The Bridge Facility has been made in the context of a planned equity financing at the level of ICA in a minimum amount of 20,000,000 Euros. Intercable could also plan an equity offering at its level in order to maintain its interest in ICA at its current level of 55.50%. Discussions with potential institutional investors are ongoing. There is no guarantee that Intercable or ICA will be able to complete an equity offering or another type of financing that would allow them to continue their operations.
Intercable is a Canadian telecommunications corporation that seeks broadband telecommunications opportunities in the international market. Intercable's business strategy is to focus on underserved telecommunications and cable markets by building and operating its own broadband networks using state-of-the-art technology capable of offering cable television, high-speed Internet and telephony services, at a low cost and with high service quality. Intercable targets markets with i) limited or no cable service; ii) feasibility of aerial cable construction; and iii) stable political environments. Management believes that Reunion Island currently represents the most significant growth opportunity for Intercable.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Intercable's annual information form dated July 8, 2008 or in the filings made by Intercable from time to time with securities regulators. Intercable undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated event.
SOURCE INTERCABLE ICH INC.
For further information: For further information: please visit the company's website at www.intercable.ca or contact: Guy Laflamme, President and Chief Executive Officer, (450) 582-7953, firstname.lastname@example.org; Zoya Shchpak, Chief Financial Officer, (514) 461-3013, email@example.com