Positive News just released for ATEL-
Tuesday April 6, 6:50 pm Eastern Time
Company Press Release
SOURCE: American Telecasting, Inc.
American Telecasting, Inc. Announces Signing of Agreement to Sell Wireless Cable Systems in Three of its Smaller Markets
COLORADO SPRINGS, Colo., April 6 /PRNewswire/ -- American Telecasting, Inc. (OTC Bulletin Board: ATEL - news) announced today that it has entered into an agreement with Antilles Wireless, L.L.C. (''Antilles'') to sell the Company's wireless cable channel rights and operating assets in Billings, Montana, Grand Island, Nebraska and Rapid City, South Dakota to Antilles for up to $6.2 million cash.
The transaction is contingent upon the grant by final order of the Federal Communications Commission of the assignment application for licenses owned and upon consents of channel lessors for licenses leased. The transaction is also subject to other customary closing conditions. The agreement will terminate if the transaction is not consummated by September 30, 1999.
The purchase price is subject to a downward adjustment for expected decreases in subscriber levels prior to closing. At closing, the Company will receive the adjusted closing price, less $500,000 which will be held in escrow for one year for satisfaction of any indemnification obligations.
American Telecasting, Inc. is one of the largest operators of wireless cable television systems in the United States, serving approximately 107,000 video subscribers in 32 markets as of December 31, 1998. The Company also provides commercial high-speed Internet access in three markets and is a leader in testing MDS wireless broadband access services. The Company's wireless services use microwave frequencies licensed by the FCC.
SOURCE: American Telecasting, Inc.
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