Does the following press release mean that the CVUS board wasted more shareholder money by purchasing the VisionStar application from Shant? See below:
Monday July 13, 7:34 am Eastern Time
CellularVision Announces $32.5 Million Sale of Selected Frequencies
BROOKLYN, N.Y., July 13 /PRNewswire/ -- CellularVision USA, Inc. (Nasdaq: CVUS - news) announced today that it has entered into an agreement with WinStar Communications, Inc. (Nasdaq: WCII - news) to sell 850 MHz of contiguous LMDS spectrum throughout its licensed territory for $32.5 million in cash. The transaction is subject to regulatory and shareholder approval, as well as the consent of certain lenders, and is expected to close in the fourth quarter of this year. WinStar has also agreed to lend CellularVision $3.5 million as soon as lenders consents are obtained, and an additional $2.0 million when stockholder approval is obtained, so long as all required FCC filings have been made by that time. The loan is to be repaid as an offset against the purchase price. CellularVision will use the loan proceeds to meet outstanding obligations and finance its operations pending the closing, following which it intends to repay all of its outstanding debt obligations.
Following the sale, CellularVision will retain 450 MHz of LMDS spectrum, which will be reduced to 300 MHz when the first Ka band satellite becomes operational. As a result, CellularVision will replace its currently operational multichannel television service with other services prior to the closing of the spectrum sale, and will consider a number of possible alternative future business strategies. These alternatives will include operation of the Company's high-speed Internet access service on its existing infrastructure, utilizing its retained frequencies, entry into the Ka band satellite business and sale of the Company's remaining assets to a third party, with proceeds to be distributed to stockholders.
|
