RANCHO MIRAGE, CA, Dec. 15, 2014 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX-V: CWG), is pleased to announce that it has increased its investment in its New Zealand-based subsidiary, Woosh Wireless (NZ) Limited ("Woosh").
Pursuant to a commitment letter dated November 25, 2014, Craig Wireless has invested an additional US$375,000 in Woosh. This new US$375,000 investment has been combined with the existing US$2,245,000 loan by the Company to Woosh, and the aggregate amount of US$2,620,000 owing to Craig Wireless is evidenced by Woosh issuing to the Company a secured convertible promissory note (the "Note"). The commitment letter further provides that additional funds may be advanced by the Company to Woosh in the future on the same terms and conditions.
Interest will accrue on the principal amount of the Note at 15% per annum. The principal and accrued and unpaid interest on the Note is due in twenty-four months (the "Term"), subject to the right of Woosh to prepay in minimum increments during the Term. The outstanding amount of the Note is convertible at any time, in whole or in part, until maturity, into ordinary shares of Woosh Wireless Holdings Limited, the parent company of Woosh. The conversion price per ordinary share is US$400.
About Craig Wireless Systems Ltd.
Craig Wireless and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.3 GHz, 2.5 GHz, 2.6 GHz or 3.5 GHz bands in New Zealand, Riverside County in Southern California, United States and in Greece. The CWS Group also has spectrum interests in Norway. Spectrum in these ranges is effective for delivery of point-to multipoint signals, possesses robust bandwidth capability and supports emerging 4G-based applications, including portable and mobile applications.
Notice on forward-looking statements:
This release includes forward-looking statements regarding Craig Wireless and its business. Such statements are based on management's current expectations. The forward looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Craig Wireless and its business. Not to limit the generality of the foregoing, the forward-looking information set forth in this news release is subject to various risks and other factors including the following: availability of funding; the risks of conducting business in a foreign country; currency fluctuations; in addition to those risks enumerated under the heading "Risk Factors" in the Company's AIF, available on SEDAR at www.SEDAR.com.
No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Craig Wireless does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Craig Wireless Systems Ltd.
For further information: T. Boyd Craig, Chief Executive Officer and director, Craig Wireless Systems Ltd., phone: (760) 346-3282, email: [email protected]