PICK Communications Corp. Completes $9.9 Million Private Placement
Business Wire - September 08, 1998 14:08
WAYNE, N.J.--(BUSINESS WIRE)--Sept. 8, 1998--
Private Placement Raises Capital to Retire Existing Debt
Increases Financial Flexibility for Future Growth
PICK Communications Corp. (OTCBB:PICK), a facilities-based telecommunications carrier, today announced that it has successfully concluded a private placement of $9.9 million in short term senior secured notes through an NASD registered broker dealer/Investment Banker.
The Company plans to use the proceeds primarily to repay existing debt, fund capital expenditures and hire technical and operations personnel. The Company will retire the $ 9.9 million private placement upon completion of a planned equity financing.
Diego Leiva, President, Chief Executive Officer and Chairman of the Board, emphasized the positive impact of the funding on the growth of the Company. "This financing provides PICK with the ability to accelerate its network expansion, provide more competitively priced, rapid transport of voice and data on a worldwide basis, and strengthen its position in the industry. The Company can now also proceed toward acquiring new technologies to begin aggressively growing PICK into a global leader in the delivery of telecommunications services."
PICK Communications Corp. is a diversified telecommunications company headquartered in Wayne, NJ. with international gateway switches located in Jersey City, NJ and Miami, FL. PICK provides international long distance services to other carriers and resellers in the United States and has distributed prepaid telephone calling cards nationally since 1993.
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. The Company's actual future results could differ materially from the forward-looking statements discussed herein based on certain risks and uncertainties, including the timely development and acceptance of new products in a constantly evolving telecommunications industry, the impact of competitive products and pricing, government regulations and the other risk factors detailed from time to time in the Company's SEC reports.
CONTACT: Godek Communications, New York
Chris Godek, 212/332-4888
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