NHC Communications Inc. Announces a $3.54 Million (CDN) Private Placement of Common Shares
MONTREAL, Oct. 12 /CNW/ - NHC Communications Inc. (TSE: NHC - news), a leading provider of carrier class test access and deployment solutions for the copper- based telecommunications and Internet access markets, announced today that it plans to raise $3.54 million (CDN) through a private placement of its common shares. The investors in this private placement are funds managed by Manchester Management, a US based institution and certain members of management of NHC.
NHC intends to offer an aggregate of 4,660,000 common shares, at a price of $0.76 per common share, representing a premium to the current trading price of NHC's common shares.
"The fact that we were able to raise these funds in difficult markets is an endorsement of our aggressive growth plans," said Sylvain Abitbol, President and Chief Executive Officer of NHC. "We continue to invest in sales and research and development to position the Company as a leader in the global cross-connect market. With this financing, plus current cash and anticipated cash flow from collection of revenues, NHC will have approximately CDN $6 million in cash, enough to execute our near term operational plans," said Sylvain Abitbol, President and Chief Executive Officer of NHC.
"In particular, this financing arrangement will enable us to continue with scheduled first office applications (FOAs) with several ILECs worldwide," continued Mr. Abitbol. "We are confident that the conclusion of these FOAs will lead to future sales of our ControlPoint(tm) solutions."
"This significant new commitment in our Company follows a thorough examination of our technology, products and business potential, and demonstrates Manchester's confidence in our business plan" said Mr. Abitbol.
NHC intends to use the net proceeds of this financing for working capital and corporate development purposes.
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals. The common shares issuable in connection with this private placement have not been and will not be registered under the "United States Securities Act of 1933", as amended, and may not be sold or offered for sale in the United States or otherwise distributed in the United States, except in reliance on available registration exemptions.
ABOUT NHC COMMUNICATIONS INC.:
NHC (www.nhc.com) is a leading provider of carrier class test access and deployment solutions for the copper-based telecommunications and Internet access markets and of innovative remotely controlled physical layer cross- connect solutions for established and next-generation voice/data networks. With a unique range of technologies, NHC is at the heart of today's corporate enterprise service market and the telecommunications industry. NHC maintains offices in Montreal, Quebec; Paris, France; and Manassas, Virginia. NHC's ControlPoint(TM) is an automated, true any-to-any copper cross-connect switch capable of performing the four fundamental functions at the heart of all operations performed by incumbent local exchange carriers, competitive local exchange carriers, and multiple-tenant units and multiple-dwelling units: loop qualification, deployment and provisioning, fallback switching and service migration of DSL, ISDN, E1/T1 and POTS. "ControlPoint(TM)" is a trademark of NHC Communications Inc.
NHC may be contacted through its web site: www.nhc.com
Statements included here, which are not historical in nature, are forward- looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation, statements as to management's beliefs, strategies, plans, expectations or opinions in connection with the Company's performance, which are based on a number of assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual future events or results. Readers are referred to the documents filed by NHC with the pertinent Canadian security exchange commissions, specifically the most recent Quarterly Reports, Prospectus, Annual Information Form and Annual Report, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including rapid technological change along with the need to continually develop new products; the Company's dependence on a dominant product line; competition; the Company's dependence on key employees; difficulties in managing the Company's growth; the Company's dependence upon certain customers and certain suppliers; the Company's dependence upon proprietary rights; risks of fourth party claims of infringement; and government regulation. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in NHC's most recent Quarterly Reports and Annual Report filed, each as it may be amended from time to time. NHC's results of operations for the three and twelve months ended May 4, 2001 are not necessarily indicative of NHC's operating results for the full fiscal year or any future periods.
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