NHC Communications Announces $20.3 Million Special Warrant Offering
MONTREAL, Feb. 25 /CNW/ - NHC Communications Inc. (TSE: NHC), a leading
provider of carrier class test access and deployment solutions for the Digital
Subscriber Lines (DSL) service market, announced today it plans to raise $20.3
million through a private placement of special warrants underwritten by
Yorkton Securities Inc.
The net proceeds received by NHC from the financing will be used to
finance its ongoing high level of growth in the exploding DSL market.
The Company intends to offer a maximum of 1,930,000 special warrants, at
a price of $10.50 per special warrant, subject to adjustments, for aggregate
gross proceeds of approximately $20.3 million. Of that total, up to 930,000
special warrants will be issued by NHC and up to one million special warrants
will be offered by Breakwater Capital Corporation. Of the gross proceeds of
$20.3 million, $9.8 million will be paid to NHC. Each special warrant will
entitle the holder to acquire one common share of the Company for no
additional cost.
"This offering will enable us to accelerate our growth," said Sylvain
Abitbol, President and Chief Executive Officer of NHC. "We now have the
ability to further strengthen our sales, marketing and support
infrastructure."
Mr. Abitbol said much of that expansion will be derived from NHC's
penetration of the telecommunications market with the Company's VCCS(TM)
Solution. This innovative product enables telecom carriers to automate DSL
test access and deployment. This enables service providers to cost-effectively
provide a variety of high bandwidth services to business and residential
users.
Half the proceeds of the offering will be escrowed after the closing
date, pending the filing by NHC of a prospectus qualifying the common shares
to be issued upon exercise of the special warrants. NHC expects to file the
prospectus in the provinces of British Columbia, Alberta, Manitoba, Ontario
and Quebec.
In the event that receipts for the prospectus are not issued by
regulators within 90 days of the closing date of the private placement,
holders of the special warrants will have the right to cause NHC and
Breakwater to repurchase up to 50 per cent of the special warrants. Any
special warrants not repurchased will entitle the holder to acquire 1.1 common
shares of NHC for no additional cost.
The closing of the private placement is expected to take place on or
about March 15, 2000, and is subject to regulatory approval and the execution
of definitive documentation, including an underwriting agreement.
The special warrants have not and will not be registered under the U.S.
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements.
NHC Communications Inc. is an international leader in the design and
manufacture of innovative physical layer high-speed switched access solutions
for established and next-generation voice/data networks. With a unique range
of technologies developed from years of experience, NHC is now at the heart of
today's corporate enterprise service market and the telecommunications
industry.
Visit the Company's Web site at www.nhc.com. To request a free copy of
NHC's annual report, please go to www.newswire.ca and click on reports@cnw.
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For further information: Sylvain Abitbol, President & CEO,
s.abitbol@nhc.com, (514) 734-4302; Sylvain Brossard, Vice President,
Finance & Operations, S.brossard@nhc.com, (514) 734-4304;
To request a free copy of this organization's annual report, please go to |
