Yup! I was right! We got our financing!
MDU Communications Inc. Secures Expansion Financing
RICHMOND, B.C.--(BUSINESS WIRE)--June 11, 1999--MDU Communications Inc. (OTC BB:MDTV - news), Canada's premier supplier of digital satellite television to the multidwelling unit market, is pleased to announce that the company has secured US$1,709,000 in financing from private investors.
This financing involves the issuance of 742,857 restricted common shares under rule 506 at US$1.75 for a total of US$1,300,000. These shares are restricted from trading for a period of one year. Twenty-five percent of these shares are free trading after this period with an additional 25 percent released every three months afterwards.
The company has also issued US$409,000 in the form of convertible promissory notes. US$369,000 of these convertible promissory notes bear interest at the rate of 8-3/4 percent with a further US$40,000 bearing interest at 9 percent. US$200,000 of these notes are convertible for common shares at $1.75 per share with the remaining $US209,000 convertible into common shares at $2 per share.
Net proceeds of this financing will be used to defray subscriber acquisition costs, marketing, general working capital requirements and to further expand our digital satellite deployment which is currently accelerating at the rate of 300-400 subscribers per week.
''We are extremely pleased with the interest, positive response and support we have received from the financial community,'' says Douglas Irving, CFO of MDU Communications. ''The issue price to market, the favorable conversion price and interest rate is a direct reflection of the confidence that is being placed with MDU in its ability to deliver our technology to the residents of multiple dwelling units.''
Through mutually beneficial relationships with our clients, MDU facilitates the delivery of new technology to residents of multidwelling units including apartment buildings, condominiums, universities, gated communities, hotels/motels and work camps. MDU Communications Inc. is a nationally authorized Star Choice System Operator.
MDU Communications Inc. is the premier supplier of digital satellite television to the MDU market and competes with cable television across Canada. With digital pictures, better selection, more bandwidth, and enhanced CD quality sound, MDU offers more choice and exceptional quality.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities & Exchange Commission.
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Contact:
MDU Communications Inc.
888/322-6633 or 604/277-8150
604/277-8301 FAX
mduc.com
OR
Vistawest Capital Group
IR Dept., 604/602-0078
800/794-9076
mailto:investor@mduc.com
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