Craig Wireless Systems Sells New Zealand Spectrum to Spark
Craig Wireless Systems Sells New Zealand Spectrum to
Spark
Rancho Mirage, California,
April 14, 2016 – Craig Wireless Systems Ltd. (the
“Company”) (TSX-V: CWG) today announced
that Spark New Zealand Trading Limited
(“Spark”) has completed the purchase
Radio Spectrum Management Right 396 from Craig Wireless New
Zealand Spectrum Operations Limited, a wholly-owned
subsidiary of the Company, for a purchase price of NZ$4.5
million and Radio Spectrum Management Right 415 from Woosh
Wireless Holdings Ltd, a New Zealand corporation of which
the Company owns 75%, for a purchase price of NZ$4.5 million
(the “Sales Transactions”). The
aggregate purchase price of NZ$9 million is subject to goods
and services tax, and is payable by Spark in cash.
About Craig Wireless Systems Ltd.
The Company 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.
On November 3, 2015, the Company announced that it was in receipt of a demand for payment by its secured creditors (the “Creditors”), who collectively hold outstanding loans in the aggregate principal amount of US$8,930,576.69, plus certain fees and expenses. The Company does not currently have sufficient cash on hand to make payment in full in respect of the Creditors’ demand.
Notice on Forward-looking
statements:
This release includes
forward-looking statements regarding the Company and the CWS
Group. 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 the CWS Group 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 our inability to complete the Sales Transactions
resulting from the failure to satisfy conditions of closing,
or otherwise. 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.
ENDS