VANCOUVER, Oct. 29 /CNW/ - MetroBridge Networks International Inc.
(TSX-V: MEB) is pleased to announce that it has signed a Letter of Intent to
acquire Utah Broadband, LLC, a Salt Lake City-based company with operations in
six counties including the Salt Lake City, Provo, and Park City metropolitan
areas for US$5.4 million. Utah Broadband has approximately 3,000 customers
with an Average Revenue per User (ARPU) of approximately US$55 per month. The
company is a profitable operation with annual revenues exceeding
The US$5.4 million purchase price for Utah Broadband consists of
US$4 million in cash, and US$1.4 million in MetroBridge shares based on the
thirty day average closing price. The shares issued will be escrowed for a
maximum of 15 months. The transaction is expected to close early in 2008 and
is subject to customary closing conditions including the completion of due
diligence by MetroBridge, receipt of all necessary regulatory approvals and
the negotiation and execution of a definitive agreement.
"We believe this transaction represents great value for MetroBridge,"
said Dorian Banks, President of MetroBridge. "We look forward to working with
Steve McGhie and his team to drive up ARPU and revenues through the build-out
and marketing of a high capacity network, along with MetroBridge's suite of
value-added products and services within the Utah Broadband coverage area."
"Joining MetroBridge, with its expertise in providing exceptional
products and services for the business community, gives us an opportunity to
greatly expand our dominance by delivering high-end commercial bandwidth
solutions in the greater Salt Lake area and future US markets," said Steve
McGhie, CEO of Utah Broadband.
RBC Daniels, L.P., a subsidiary of RBC Capital Markets, served as
financial advisor to Utah Broadband.
About Utah Broadband, LLC
Utah Broadband has been delivering broadband wireless access to customers
in six counties along the Wasatch Front, including the Salt Lake City, Provo,
and Park City metropolitan areas for nearly six years. Using advanced wireless
technologies, the company network is based on Motorola's Industry leading
Canopy Wireless platform, which operates in the 5 GHz spectrum. Utah Broadband
offers several service packages designed to provide solutions for every size
About MetroBridge Networks International Inc.
MetroBridge, a leading international fixed wireless provider, delivers
broadband wireless access using pre-WiMAX and other advanced wireless
technologies. Its highly redundant mission critical network provides
connections up to 2500Mbps in Canada and the United States. MetroBridge's
aggressive growth strategy contemplates acquisitions throughout North America
and additional complementary products and services. The Company operates in
all market segments including police and 911 services, the financial industry,
retailers and businesses of all sizes. MetroBridge was the first Canadian
carrier selected to join the WiMAX Forum to assist the industry in
establishing equipment interoperability. Please visit the Company's website at
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements that
reflect the current views and/or expectations of MetroBridge Networks
International Inc. with respect to performance, business and future events.
Such statements are subject to a number of risks, uncertainties and
assumptions. Actual results and events may vary significantly from those
disclosed herein. Investors are cautioned not to rely on these forward-looking
statements. MetroBridge Networks International Inc. does not undertake to
update these forward-looking statements.
For further information:
For further information: Samantha Singh, MetroBridge Investor Relations,
Toll Free: (888) 628-1240, Direct: (604) 628-5627, Fax: (888) 628-2650,