/NOT FOR DISTRIBUTION IN THE UNITED STATES/
Company to increase WiMAX technology development and deployments
MARKHAM, ON and LONDON, UK, Oct. 25 /CNW/ - Redline Communications Group
Inc. (TSX/AIM: RDL - previously REDL), a leading provider of standards-based
WiMAX and broadband wireless infrastructure products, announced today the
completion of its placing of CDN$40.0 million ((pnds stlg)20.1 million)
comprising of 6,155,000 common shares of no par value at a price of $6.50
((pnds stlg)3.27) per share of which 4,625,000 were from treasury and
1,530,000 were secondary. Effective from this date, the Company's shares will
commence trading on the TSX and AIM under the symbol 'RDL'.
"Redline is focused on delivering broadband wireless products that enable
carriers to deliver advanced voice, video and data communications," said Majed
Sifri, President and Chief Executive Officer, Redline Communications Group
Inc. "Redline is among the leaders in WiMAX, with more than 125 deployments of
our WiMAX Forum Certified(TM) products and our emphasis on delivering true
WiMAX performance and interoperability. With the listing of RCG on the TSX and
AIM, we believe we are well positioned to increase our WiMAX technology
development and deployments worldwide."
As a result of Redline's corporate reorganization, which was disclosed on
September 26, 2007, Redline Communications Group Inc. ("RCG") became the
holding company of the previously AIM admitted Redline Communications Inc.
("RCI"). The reorganization was completed immediately prior to the listing of
RCG on the Toronto Stock Exchange ("TSX") and admission to trading on the AIM
market of the London Stock Exchange plc ("AIM") today.
As a result of the reorganization, RCI is now a wholly owned subsidiary
of the Redline Communications Group. Holders of the common stock of RCI who
did not elect otherwise received shares of class B common stock at a ratio of
one RCI share for 0.25 shares in the surviving entity that were automatically
redeemed by RCI for an equal number of common shares of the Company. In
addition and contemporaneously, holders of the common stock of RCI who so
elected received at a ratio of one RCI share for 0.25 common shares of the
RCI, a class of stock which are redeemable at the option of the holder at any
time after the TSX listing and AIM admission for an equal number of common
shares of the Company.
The Redline Communications Group Inc. shares have been assigned new ISIN
and CUSIP numbers, which are listed below:
RDL (previously REDL): ISIN CA7576371032 CUSIP: 757637103
The reorganization was accomplished by a merger of a wholly-owned
acquisition vehicle with and into the Company pursuant to the Delaware General
This press release does not constitute an offer to sell or a solicitation
of an offer to sell common shares of Redline in the United States. These
securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold in the United States except in
compliance with the registration requirements of the U.S. Securities Act and
applicable state securities laws or pursuant to an exemption therefrom.
About Redline Communications, Inc.
Redline is the leading provider of standards-based wireless broadband
solutions. Redline's RedMAX(TM) WiMAX Forum Certified(TM) systems, RedMAX
4C(TM) Mobile WiMAX products and award-winning RedCONNEX(TM) family of
broadband wireless infrastructure products enable service providers and other
network operators to cost-effectively deliver high-bandwidth services
including voice, video and data communications. Redline is committed to
maintaining its wireless industry leadership with the continued development of
WiMAX and other advanced wireless broadband products. With more than 50,000
installations in 80 countries, and a global network of over 100 partners,
Redline's experience and expertise helps service providers, enterprises and
government organizations roll out the services and applications that drive
their business forward. For more information, visit
Any forward-looking statements in this press release are based on current
expectations that are subject to significant risks and uncertainties that are
difficult to predict. Actual results may differ materially from projections
suggested in any forward-looking statements due to a number of risks including
those associated with the business of Redline, the proposed offering and
regulatory matters. Redline assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Readers are
cautioned not to place undue reliance on forward-looking statements.
Additional information identifying risks and uncertainties are contained in
RCG's preliminary prospectus filed with the Canadian securities regulatory
authorities, available at www.sedar.com.
NOTE: All registered and unregistered trademarks mentioned in this
release are the property of their respective owners.
For further information:
For further information: Redline Communications, Tom Hearne, Chief
Financial Officer, Carolyn Anderson, Communications Director,
email@example.com, Tel: (905) 479-8344; The Equicom Group,
Craig Armitage/Vanessa Beresford, firstname.lastname@example.org, Tel: (416)
815-0700; Canaccord Adams, Chris Bowman, Tel: +44 (0)20 7050 6500