Stock Symbol: ICH
MONTREAL, May 31 /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"), its subsidiary, obtained a bridging facility (the "ABSA Bridge Facility") with ABSA Capital (a division of ABSA Bank Limited, a shareholder and insider of ICA), as lender, of seven hundred and fifty thousand Euros (approximately $960,000).
The ABSA Bridge Facility is conditional on the execution of a standard facility agreement and related security documentation for this type of transaction. The ABSA Bridge Facility will be repayable on July 31, 2010, will bear interest at a rate equal to the one-month LIBOR plus 7%, will be subject to a facility fee of 500 basis points and will have the same terms and conditions as the existing 2 million Euros Bridge Facility (approximately $2.6 million) with The Mauritius Commercial Bank Ltd (a bank affiliated to MCB Equity Fund, a shareholder and insider of Intercable) (the "MCB Bridge Facility"). Disbursement under the ABSA Bridge Facility is expected by June 10th, 2010 upon execution of all related documentation.
The ABSA Bridge Facility should enable ICA and Intercable to pursue their operations until June 30th, 2010 and discussions with investor groups in the context of a long or medium-term financing.
In conjunction with the ABSA Bridge Facility, ICA obtained an extension of the expiry date of the MCB Bridge Facility from May 31, 2010 to June 30th 2010, conditional on ABSA Bank Limited providing the (Euro)750,000 ABSA Bridge Facility to ICA.
The ABSA Bridge Facility has been made in the context of a planned long or medium-term financing round. 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 after June 30, 2010.
Delay in the Release of Intercable's Unaudited Interim Financial Statements as at March 31, 2010
Intercable also announced today that its unaudited interim financial statements, management discussion and analysis ("MD&A") and CEO and CFO certifications for the interim period ended March 31, 2010 will not be released as scheduled on May 31, 2010. It is now anticipated that the release of these documents will occur no later than July 9, 2010.
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: Guy Laflamme, President and Chief Executive Officer, (450) 582-7953, firstname.lastname@example.org; Zoya Shchupak, Chief Financial Officer, (514) 461-3013, email@example.com; www.intercable.ca