I am surprised CLNTF is trading down with this release....
Usually investors of these smaller-cap PCS stocks like to be reassured there is enough "cash in the bank" to continue to add subs, build-out network, etc. Despite all of the buy-out rumors, thought this would be better received on the Street. Look at what has happened to OMPT, PTEL, etc. when they announced additional financing-much different reaction than what we are getting today.
Monday February 8, 10:28 am Eastern Time
Company Press Release
Clearnet Communications Inc. Plans to Raise Proceeds to Clearnet of Approximately Cdn. $100,000,000 From Sale of Canadian Dollar Senior Discounted Notes
NEW YORK--(BUSINESS WIRE)--Feb. 8, 1999--Clearnet Communications Inc. (''Clearnet'') (TSE:NET - news; ME:NET - news; NASDAQ:CLNTF - news) today announced that it plans to raise proceeds to Clearnet of approximately Cdn. $100,000,000 from the sale of Canadian dollar denominated senior discount notes due 2009 (the ''Notes''). The Notes are being offered in Canada and the United States under a shelf prospectus filed in both countries.
Proceeds of the offering will be used to fund a portion of Clearnet's capital expenditures related to the expansion of its digital wireless networks and negative EBITDA requirements related to the expected future expansion of Clearnet's digital subscriber base, and for general corporate and working capital purposes, which may include selective acquisitions of complementary businesses and may be used to repay amounts outstanding under vendor financing arrangements.
The underwriting syndicate in respect of the Notes is being led by TD Securities (USA) Inc. and co-managed by RBC Dominion Securities Corporation, BT Alex Brown Incorporated and CIBC World Markets Inc.
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Contact:
TD Securities
212/827-7623
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