MDTV Closes $5.0M in Additional Financings
TOTOWA, N.J.--(BUSINESS WIRE)--11/24/2003--MDU Communications International, Inc. (OTCBB:MDTV), a leading provider of DIRECTV(R) digital satellite television programming, private cable and broadband Internet services to the United States residential multi-dwelling unit (MDU) market, today closed a $3.3 million private placement equity financing with four institutional and one institutional-type investor. In addition, over the past thirty days, the Company has received approximately $1.7 million in net proceeds from the early exercise of warrants held by various Company shareholders.
On November 14, 2003, following the Company's decision to raise approximately $3.0 million in strategic equity to accelerate growth, the Company began offering up to 22 units in a private placement pursuant to a Confidential Offering Memorandum, with each unit consisting of 100,000 common shares and 50,000 warrants to purchase common shares. The price of the common shares and warrants to purchase common shares were set as of the offering date at $1.50 and $1.75 per share, respectively. Today, the Company closed on all 22 units for $3.3 million in net proceeds.
"The outlook for the Company is very positive," commented Sheldon Nelson, President and CEO of MDTV. "The Company has a very strong balance sheet with $5.0 million in cash and no long term debt; costs are being contained, therefore we expect the Company to continue achieving positive EBITDA and cash flow; recent subscriber growth and the new agreement with DIRECTV are already adding to increased revenues; there is a backlog of approximately 18,000 units waiting for service; and, the Company is quickly approaching a point in its business cycle where subscriber growth can be funded internally from cash flow, eliminating the need for additional capital. The achievement of these significant objectives allows the Company, without distraction, to fully concentrate its efforts on increasing its customer base and deployment of its backlog. These are very important steps forward for our Company, our customers and our shareholders," added Mr. Nelson.
About MDU: MDU Communications International, Inc. (OTCBB:MDTV) is a leading provider of premium communication/information services, including digital satellite television and high-speed (broadband) Internet services, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. Through its wholly owned subsidiary, MDU Communications (USA) Inc., MDTV delivers DIRECTV(R) digital satellite television services and high-speed (broadband) Internet systems and is committed to delivering the next generation of interactive communication services to MDU residents. For additional information, please see www.mduc.com or contact Investor Relations.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements relating to growth of the Company. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements, including, but not limited to, fluctuations in operating results and operating plans, deployment of new subscribers, market forces and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's 10-KSB for year ended September 30, 2002 filed on or about January 14, 2003, and incorporated herein by reference.
The Company's filings, including current financial reports, can be accessed through the EDGAR database at www.sec.gov.
CONTACT:MDU Communications International, Inc. Sheldon Nelson, 973-237-9499 Email: investor@mduc.com Website: www.mduc.com
SOURCE: MDU Communications International, Inc.
11/24/2003 10:01 EASTERN |
