Vecima Networks Completes $8.0 Million Sale of Radio Spectrum
VICTORIA, BRITISH COLUMBIA, Dec 20, 2011 (Marketwire via COMTEX) --
Vecima Networks Inc. (TSX:VCM) is pleased to announce that its special purpose entity YourLink Inc. has successfully concluded phase one of an agreement to sell a portion of its 3.5 GHz radio spectrum licenses to Xplornet Broadband Inc.
"We are delighted to conclude the first phase of this transaction," said Surinder Kumar, Chief Executive Officer of Vecima. "This sale is further confirmation that Vecima holds assets that have a market value much higher than our historical cost."
Vecima entered into an agreement for a multi-phase transaction earlier in 2011. The first phase involved the sale of 16 licences for approximately $8 million. Options exist for the sale of additional spectrum licences in the next three months. Vecima believes that the market value of YourLink's remaining spectrum holdings, after the closing of this phase 1, is approximately $20 million to $30 million.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's solutions enable service providers to meet the needs of a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions also allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile". In addition, the Company continues to focus on developing products to address emerging markets, such as Voice over Internet Protocol, fibre to the home and IP video. www.vecima.com
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Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management's intentions, belief or current expectations with respect to market and general economic conditions, future sales and revenue expectations, future costs and operating performance. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima's operations and industry and customer demand that may have a material impact on, or constitute risk factors in respect of Vecima's future financial performance, as set forth under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2011, a copy of which is available at www.sedar.com. In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, as a result of new information, future events or otherwise, except as required by law.
SOURCE: Vecima Networks Inc.
Vecima Networks Inc.
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