Rights offering completed. I asked for an additional 1,000 shares as part of the offering, and got 21. Oh well, they were at $4.60 share so I can't complain! I guess I should have requested 10,000.
Attention Business Editors:
COM DEV completes rights offering
Company successfully raises $37 million through fully subscribed rights
offering
CAMBRIDGE, ON, March 23 /CNW/ - COM DEV International Ltd. (TSE:CDV)
today announced the successful completion of its rights offering. The offering
was fully subscribed through the exercise of basic rights together with a
strong demand for additional shares. As a result, the maximum number of
8,055,726 shares were issued raising gross proceeds for the company of $37
million.
Under terms of the rights offering, announced February 8, 2000, each
registered common shareholder of COM DEV was entitled to one right for each
common share held as of the record date of February 18, 2000. Rights holders
were entitled to purchase one common share at a subscription price of $4.60
for every four rights held. The rights expired on March 10, 2000.
As previously announced, Technology Horizons Ltd. ("THL"), pursuant to a
standby commitment, agreed to subscribe for any shares not taken up in the
rights offering to a maximum of $25 million. As the offering was fully
subscribed, THL's participation in the offering was limited to the exercise of
rights assigned to it by certain COM DEV principal shareholders pursuant to
the arrangements described in the rights offering circular. THL exercised
these rights and acquired 2,997,879 shares under the terms of the offering.
Due to the success of the offering, THL did not subscribe for any shares under
its standby commitment.
As a result of the rights offering THL ownership in COM DEV may
eventually exceed 10 percent. THL holds a partnership interest in the
SkyBridge L.P. pursuant to arrangements made between COM DEV and THL. Under
these arrangements THL has the right to sell its SkyBridge partnership
interest to COM DEV for consideration of between 1,730,753 and 2,032,323 COM
DEV shares depending on the timing of the sale. In the event that the
SkyBridge interest is transferred to COM DEV as per these arrangements, THL's
ownership would increase to as many as 5,030,202 COM DEV shares representing
approximately 11.9% of the issued and outstanding shares of COM DEV. THL holds
the interests described above solely for investment purposes.
Canadian-based COM DEV International Ltd. is the largest Canadian-owned
designer, manufacturer and distributor of space and ground-based wireless
products and subsystems through its two divisions: the Space Group and the
Wireless Group. COM DEV employs approximately 1,300 people in facilities in
Ontario, New Brunswick, the United States, the United Kingdom and China.
The Space Group manufactures advanced products that are sold to the major
satellite prime contractors for use in earth science and commercial
communications satellites. The Wireless Group manufactures ground-based
infrastructure subsystems used in microwave and radio frequency systems, such
as GSM and CDMA-based digital telephone systems, and wireless local loop
networks. These products are sold primarily to major PCS wireless equipment
vendors.
THL is a private company whose ownership includes a number of COM DEV
officers, directors and employees. THL's head office is located at 19 Thorne
Street, Suite 201, Cambridge, Ontario.
SkyBridge L.P. is a partnership of leading global space companies
including COM DEV International. It is registered in the U.S.A. and led by
Alcatel of France. SkyBridge is working to develop a future constellation of
communications satellites focussed on delivering wireless Internet service via
satellite to home and small business users.
This news release may contain certain forward-looking statements that
involve risks and uncertainties. Actual results may differ materially from
results indicated in any forward-looking statements. The company cautions
that, among other things, in view of the rapid changes in the wireless
communications markets and technologies, and other risks including the cost
and market acceptance of the company's new products, the level of individual
customer procurements and competitive product offerings and pricing, and
general economic circumstances, the company's business prospects may be
materially different from forward-looking statements made by the company.
%SEDAR: 00003673E
-0- 03/23/2000
For further information: Investor and Media Contact: Ron Holdway, Vice President, Corporate Communications, Tel: (519)
622-5004, Fax: (519) 622-1691, E-mail: investor.relations@comdev.ca, Website: www.comdev.cc; Analyst Contact: David
Belbeck, Chief Financial Officer, Tel: (519) 622-2300 ext. 2288, Fax: (519) 622-2158, E-mail: david.belbeck@comdev.ca. To
request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw. |
