Multiband Announces Completion of $10 Million Series I Preferred Stock Financing through Mercator Advisory Group, LLC -- Shares Are Convertible Into Common Stock at a Premium 2/7/2005 8:01:00 AM
MINNEAPOLIS, Feb 7, 2005 (BUSINESS WIRE) -- Multiband Corporation (MBND) announced today the completion of a $10 million private placement of the company's Series I Convertible Preferred Stock.
The offering was made by Mercator Advisory Group, LLC of Los Angeles, California, through its designated funds, Monarch Pointe Fund, Ltd, Mercator Momentum Fund, LP. Mercator Momentum Fund III, LP., and certain investors. HC Wainwright & Company LLC received a fee for its role in the transaction. Multiband intends on utilizing proceeds received from the offering for the expansion of its nationwide network of voice, data, and video services including those provided through a Master System Operator agreement with DirecTV (DTV).
Under the terms of the preferred stock offering, the company will issue shares of its Series I Convertible Preferred Stock in the aggregate offering amount of $10 million. The shares of Series I Convertible Preferred Stock contain a monthly dividend that is payable at a range between the prime rate and prime +10% during the first seven months and at the Wall Street Journal Prime Rate thereafter. The preferred shares are convertible into shares of common stock at the fixed rate of $1.50 per share. In addition, the investors will also receive three-year warrants to purchase shares of Common Stock at exercise prices of $1.57 and $1.73 per share. The company also is required to file a registration statement providing for the resale of the shares issuable upon the conversion of the Series I Convertible Preferred Stock and upon exercise of the warrants. The transaction was closed on February 3, 2005. Multiband's closing stock price on February 2, 2005 was $1.36.
"The receipt of this capital will allow Multiband to continue its impressive ramp up in both organic and acquisition based growth strategies, said James L. Mandel, Multiband's CEO. "We are anxious to move on to a new level of activity."
The shares in the private placement were sold in pursuant to Regulation D under the Securities Act. Neither the underlying common stock nor the warrants have been registered under the Securities act and may not be offered or sold in the United States absent registration or an applicable exemption from those registration requirements. This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy units, shares or warrants, and is being issued under Rule 135c under the Securities Act.
About Multiband Corporation
Multiband Corporation formerly Vicom, Incorporated, formed in 1975, provides voice, data and video systems and services to business and government clients, and to multiple dwelling units (MDUs), including apartment buildings and time share resorts. In addition, Multiband is an exclusive DIRECTV Master System Operator and one of the largest providers of DIRECTV Services to apartments, lodging, hospitality locations, restaurants and timeshare resorts in the United States.
The Company's products and services are sold to clients located throughout the United Sates. The Company has two operating divisions, Multiband Business Solutions and Multiband Subscriber Services, which encompass the wholly owned subsidiary corporations Multiband USA, Inc. and URON, Inc.
In July 2004, the Company acquired Rainbow Satellite LLC, a private cable operator. Rainbow, with locations throughout the United States, has subscriber concentrations in California, Colorado, Illinois, Texas, Florida and New York. In August of 2004, Multiband acquired assets from 21st Century Satellite LLC, adding upscale RV and Mobile Home Parks to its portfolio and raising its owned and serviced subscriber base to over 70,000. Multiband has offices in Fargo, Minneapolis, Rochester, Los Angeles, San Francisco, Denver, Chicago and Tampa with satellite facilities through subcontractors in St. Louis, Dallas and New York. For additional information, please go to multibandusa.com.
SOURCE: Mutliband, Inc.
Mutliband, Inc.
James L. Mandel, 763-504-3000
or
CEOcast, Inc. for Mutliband, Inc.
Ed Lewis, 212-732-4300
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