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Gold/Mining/Energy : Telular Canada Inc. (TC.T) – undervalued?
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To: Steelguy who wrote (49)8/19/1998 9:14:00 AM
From: Larry Newhook  Read Replies (1) of 133
 
FYI

I emailed a couple of questions to TC's IR. The response and quetions as follows:

>Barry,
>Any word on when the financial terms of this licencing will be outlined
>(i.e. is it significant?). Also, when are year-end numbers coming out.
>Finally, how many shares of Telular Corp. does Telular Canada still hold?
>
>Thanks,
>Lawrence Newhook
>

Larry,

Unfortunately as part of our negotiation with NORTEL we agreed not to
disclose any figures. However, I can tell you that the agreement is a 5
year deal with NORTEL paying a per unit licensing fee whenever they use the
patent in any products. NORTEL only pays this licensing fee for years 2 to
5 as they did pay an upfront licensing fee that paid for the first year.

In terms of size it really depends on how successful NORTEL is with using
and selling this technology, however, they feel very optimistic and their
distribution is obviously much larger than ours. These licensing fees also
go straight to our bottom line as their is no production costs or selling
costs associated with them.

Our year end numbers should be released towards the end of August as the
audit is just being completed now. At the time these numbers are released
we will also be disclosing the number of Telular Corp. shares remaining.

If you have any further questions please feel free to contact me.

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