Thursday January 20, 8:01 am Eastern Time
Company Press Release
PICK Communications Completes Sale of PICKNET Telecommunications Subsidiaries and Terminates Proposed Sale of PICKSat
MIAMI, Fla.--(BUSINESS WIRE)--Jan. 20, 2000--PICK Communications Corp (OTCBB:PICK - news) a provider of satellite-based broadband Internet services, today announced that it had completed the pending sale of its telecommunications subsidiaries B PICKNET and PICKNET UK (collectively, PICKNET), to Lebow Investment Ltd., a Middle East controlled investment company.
Lebow acquired 100 percent of the capital stock of PICKNET and assumed over $10 million of outstanding debt of PICK. This transaction, leaves PICK with approximately $9.9 million, plus accrued interest, of long term convertible notes due in April 2002, plus contingent liabilities of approximately $5 million.
``We are very pleased with the completion of the PICKNET divestiture, we concluded a very good deal for our stockholders and provided Lebow with an excellent opportunity to enter into the US/UK communications market,' said Diego Leiva, Chairman of PICK. Leiva also said, ``PICK is now able to focus on its two remaining Internet subsidiaries, PICKSat which provides broadband high speed access to the Internet through Cable Television providers in Latin America and PICK Online which provides radio and video streaming content to broadband networks in the USA and Latin America.'
PICK also announced, that it has terminated negotiations to sell 80% of the stock of PICKSat, through a previously announced signed letter of intent. Furthermore, PICK has accepted the resignation of Mario Pino, President of PICKSat, Sam Tagliavore, Vice-President of Sales for PICKSat and Henry Ewen, Acting CFO of PICK Communications. PICKSat is in the process of seeking interim financing to implement its Latin America business and simultaneously recruit senior management.
PICK Communications Corp., headquartered in Miami, Fl., operates Miami-based PICKSat, Inc. which provides satellite-based broadband Internet access, and PICK Online.Com, Inc. a broadband multi-media content provider for Internet Service Providers (ISP) and Broadband Networks. More information is available at www.picksat.com, www.pick-online.com, and www.pickradio.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. These statements are not guarantees of future performance. The Company's actual future results could differ materially from the forward-looking statements discussed herein or implied by such forward-looking statements. The risks and uncertainties associated with these statements include the Company's ability to implement its new business plan and strategy, hire senior management and commercialize its PICKSAT and PICK Online Services, the Company's immediate need for additional funding, the repayment of its indebtedness, significant continuing losses, dependence on a limited number of clients, dependence on and obligations to third party vendors, dependence on the Internet, timely development and acceptance of new products and services in the constantly evolving Internet industry, the impact of competitive products/services and pricing, government regulations and the other risk factors detailed from time to time in the Company's SEC reports. The forward-looking statements contained in this press release speak only as of the date hereof and the Company disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events.
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Contact:
PICK Communications
DIEGO LEIVA, Chairman of the Board
(305) 717-1500 |
