Remaining Consideration of $50 Million Received
TORONTO and MONTREAL, Sept. 11 /CNW/ - Look Communications Inc. today
announced that it has received the remaining consideration of $50 million due
pursuant to the transaction with Rogers Communications and Bell Canada
(through their joint venture, Inukshuk Wireless Partnership ("Inukshuk")), for
the sale of its spectrum and broadcast licence.
The Agreement of Purchase and Sale (the "Agreement") allowed Inukshuk to
acquire all of Look's spectrum and broadcast license for $80 million cash
payable as follows:
1. A $30 million non-refundable payment received May 14, 2009;
2. A $20 million non-refundable payment to be made no later than
December 31, 2009; and
3. A $30 million final payment to be made no later than the earlier of
regulatory approval of the transaction or May 14, 2012.
However, the receipt of the Industry Canada regulatory approval of the
transaction on September 11, 2009 satisfied all remaining conditions precedent
to the Agreement and required Inukshuk to pay to Look the full remaining
consideration of $50 million.
In accordance with the Agreement, Inukshuk has requested that Look
support an application by Inukshuk to the CRTC for the grant of a licence
under the Broadcasting Act.
In addition, Look is proceeding with the orderly wind down of its present
operations and is currently in the process of migrating all of its:
1. Internet, Co-location and LAN extension subscribers to Durham.Net
Inc. operating as Telnet Communications; and
2. Video subscribers to Bell Canada.
As of November 15, 2009, Look will no longer be offering services to any
Look is continuing to pursue opportunities with interested parties to
maximize the value of its remaining assets, which include:
1. Tax Attributes - Approximately $350 million in tax attributes;
2. Network and Sites - The Milton property and a network consisting of
two operating centers (in Toronto and Montreal), 26 one-way broadcast
sites and 10 two-way broadcast sites.
Unique Broadband Systems (TSX Venture: UBS), Look's parent company (with
a 51.8 per cent economic interest in Look), has indicated that it will
consider all of its options to assist Look in realizing value for the
remaining assets. One option for UBS, among others, is the sale of its
interest in Look to facilitate the full value of Look's tax attributes.
About Look Communications Inc.
Look's mission has been to be an M3 - Mobile Multi Media -
communications, entertainment and information service provider in Ontario and
Québec. The Corporation currently delivers a full range of communications
services including high-speed and dial-up Internet access, digital television
distribution, and superior customer service to both the business and
residential markets. The Corporation provides its digital television
distribution and wireless Internet services using its approximately 100 MHz of
Multipoint Distribution System spectrum in the 2.5 to 2.7 GHz frequency band
covering approximately 18 million people (1.8 billion MHz/Pops) in the
provinces of Ontario and Quebec. Look's shares are listed on the TSX Venture
Exchange under the symbols "LOK" for Multiple Voting Shares and "LOK.A" for
Subordinate Voting Shares. Look's website may be found at www.look.ca.
About Unique Broadband Systems, Inc.
UBS is a publicly listed Canadian company that has a 51.8 per cent fully
diluted economic interest in Look Communications Inc. and other assets. With
its licensed spectrum through its subsidiary, Look, UBS is a Canadian digital
television broadcaster and broadband wireless service provider. The Company's
web site may be found at www.uniquebroadband.com.
Caution Regarding Forward-Looking Information
The corporate information contained in this release includes
forward-looking statements regarding future events and the future performance
of Look that involve risks and uncertainties that could cause actual results
to differ materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved may vary from the information
provided herein and the variations may be material. Consequently, there is no
representation by Look that actual results achieved will be the same in whole
or in part as those forecasts.
Neither the 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 release.
For further information:
For further information: Peter Block, Investor and Media Relations,
firstname.lastname@example.org, (647) 259-3284