VelaTel, a company that deploys and operates wireless broadband connections networks, is looking to strengthen its standing in the market with the purchase of companies like China Motion Telecom. VelaTel has also managed to strengthen its standing from several different rounds of funding including their most recent round from Ironridge.
This particular and most recent round of equity funding was somewhere in the neighborhood of $12 million. This round of funding is mostly coming through a stock purchasing agreement with Ironridge that will give the wireless communications provider the ability to make its down payment for China Motion Telecom. The down payment will be about 10 percent ($600,000) of the total purchase of the Hong Kong based firm.
The rest of the money will go to improving the company’s standing in the market by reinvesting in projects that it has undertaken across the globe. The company is gaining a stronger foothold in the Balkans, by rolling out ZTE wireless broadband networks. This money will go a long way towards strengthening and continuing the rollout in regions like Montenegro and Croatia.
It will also be used to look at other ways the company can roll out products and services around the globe. This is not money that is going towards paying bills (other than the purchase of China Motion Telecom) but instead will be going into research and development.
"I am very impressed with the operational experience of China Motion," Ironridge managing director John Kirkland said in a recent statement. "We are grateful for the opportunity to facilitate VelaTel's acquisition of the leading mobile virtual network operator in Hong Kong, and the synergies it can create for VelaTel in mainland China, South America and Europe."
Edited by Carlos Olivera