WINNIPEG, June 14 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG) today announces that the sale of its Multipoint Communications System (MCS) licenses for the Manitoba region (the "Manitoba MCS Licenses") and the associated business to Inukshuk Wireless Partnership ("Inukshuk"), a partnership of affiliates of Rogers Communications and Bell Canada, has been substantially completed.
Further to the press release of the Company dated March 26, 2010 announcing the execution of a definitive agreement for the sale (the "Sale") of the Company's Canadian spectrum assets to Inukshuk, the application to Industry Canada for the transfer of the Manitoba MCS Licenses and the transfer of the associated business represents the satisfaction of an additional condition to the completion of the Sale. The transfer of the Manitoba MCS Licenses and associated business is being made pursuant to a supplemental agreement among Craig Wireless Manitoba Inc. (a subsidiary of the Company) and Inukshuk executed on the date hereof.
Upon the approval of the application to Industry Canada to transfer the Manitoba MCS Licenses to Inukshuk, the closing in respect of the Sale of the Manitoba MCS Licenses will be complete. The portion of Sale proceeds payable by Inukshuk to the Company in respect of this phase of the Sale is $4.8 million.
The amount remaining of the aggregate Sale proceeds of $80 million to be paid to the Company by Inukshuk, is, following this closing, $20 million which is to be paid upon completion of certain conditions including all requisite regulatory approvals.
About Craig Wireless Systems Ltd.:
Craig Wireless Systems and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, television programming delivery, 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 2.5 GHz, 2.6 GHz or 3.5 GHz bands in the province of Manitoba, Canada, Riverside County in Southern California (United States) and in Greece. The CWS Group also has spectrum interests in Norway and New Zealand. 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.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
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. 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.
SOURCE Craig Wireless Systems Ltd.
For further information: For further information: J. Drew Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2, email: firstname.lastname@example.org; T. Boyd Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (760) 346-3282, email: email@example.com