NR.....just out
NHC Communications Inc -
NHC Communications warrant offering oversubscribed
NHC Communications Inc NHC
Shares issued 12,910,659 2000-03-13 close $16.5
Tuesday Mar 14 2000
Mr. Sylvain Abitbol reports
NHC Communications, a leading provider of carrier class test access and deployment solutions for the digital subscriber lines (DSL) service market, has successfully completed a $21.4-million special warrant offering led by Yorkton Securities Inc.
NHC will use net proceeds from the offering to support further expansion in the United States and to enhance its marketing program. Among the company's priorities are building its local support infrastructure throughout North America and establishing a central office in the United States to co-ordinate marketing and sales programs. As part of its continuing marketing initiatives, NHC plans to present the company's growth strategy at all major DSL conferences and before other important investor audiences.
"The heavy demand for the offering, particularly in the United States, demonstrates that investors support our growth strategy," said Sylvain Abitbol, president and chief executive officer of NHC. "Our objective is to assume a leadership position in providing CLECs with totally integrated remote solutions to manage their DSL networks."
NHC's innovative VCCS Solution enables telecom carriers to automate DSL test access and deployment. As a result, service providers can cost-effectively provision a variety of high bandwidth services to businesses and residences.
Each special warrant entitles the holder to acquire one common share of the company, subject to adjustment, for no additional cost. The 2.04 million special warrants were issued at a price of $10.50 each, for gross proceeds of $21.4-million. Of that total, 930,000 special warrants were issued by NHC and 1.11 million special warrants were offered by Breakwater Capital Corporation pursuant to a secondary offering. Of the gross proceeds of $21.4-million, $9.8-million will be paid to NHC and 50 per cent will be held in escrow, to be released upon receipt of a prospectus of NHC qualifying the common shares subject to the offering.
Breakwater and the company had mutually agreed to the repayment of $60,000 of the convertible debentures issued to Breakwater in January. This repayment will reduce the dilution effect of the convertible debentures on NHC shares by 300,000 shares at a price of 20 cents per share.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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