VANCOUVER, Oct. 15 /CNW/ - MetroBridge Networks International Inc.
(TSX-V: MEB) is pleased to announce that it has signed a Letter of Intent to
acquire 100% of the issued and outstanding common shares of WiBand
Communications Corp., a Winnipeg, Manitoba-based company with operations in
Winnipeg, Calgary, and Edmonton for $9 million. WiBand has approximately 700
customers with Average Revenue per User (ARPU) of approximately $425 per
month. WiBand is a profitable operation with annual revenues of approximately
$5 million and EBITDA of $1 million.
The $9 million purchase price for WiBand consists of $3.5 million in cash
and $5.5 million in MetroBridge shares, which will be issued over a three year
period. MetroBridge will also assume $1.5 million in long-term debt.
Completion of the transaction is expected by year end and is subject to
customary closing conditions including completion of due diligence by
MetroBridge, receipt of all necessary regulatory approvals and the negotiation
and execution of a definitive agreement.
"MetroBridge's primary growth model," said Dave King, CEO of MetroBridge,
"is through the acquisition of quality companies followed by aggressive
organic growth. WiBand has a similar focus on commercial clients and
complementary expertise to MetroBridge. The CEO of WiBand, Bob Kennedy, will
continue in a significant role with MetroBridge and we are looking forward to
working with him."
Bob Kennedy, CEO of WiBand said "Joining MetroBridge enables us to
realize the full potential of the wireless broadband marketplace in both
Canada and the United States. As part of the MetroBridge team, we will be able
to accelerate our growth and provide an extended network for our customers."
As part of the integration with WiBand, MetroBridge intends to launch its
upcoming CityBridge product which will add to the growing suite of unique and
market-differentiating value-added products and services offered by
About WiBand Communications Corp.
WiBand, established in 1999, is one of the first fixed wireless providers
in Canada. The Company offers custom broadband solutions and enterprise
connectivity throughout Manitoba and Alberta, with a network covering over
50,000 square kilometers. WiBand's products range from internet services to
sophisticated wide-area and local area networks at speeds up to 2500Mbps. The
company is one of the largest providers in Alberta using the SuperNet fiber
backbone built by the Alberta government. Their ability to provide fast,
efficient and cost-effective solutions to customers sets WiBand apart.
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,
Direct: (604) 628-5627, Toll Free: (888) 628-1240, Fax: (888) 628-2650,