Private Placement : $3.54MPress Release
SOURCE: NHC Communications Inc.
NHC Communications Inc. Announces a $3.54 Million (CDN) Private Placement of Common Shares
MONTREAL, Oct. 12 /CNW/ - NHC Communications Inc. (TSE: NHC - news), a leading provider of carrier class test access and deployment solutions for the copper- based telecommunications and Internet access markets, announced today that it plans to raise $3.54 million (CDN) through a private placement of its common shares. The investors in this private placement are funds managed by Manchester Management, a US based institution and certain members of management of NHC.
NHC intends to offer an aggregate of 4,660,000 common shares, at a price of $0.76 per common share, representing a premium to the current trading price of NHC's common shares.
"The fact that we were able to raise these funds in difficult markets is an endorsement of our aggressive growth plans," said Sylvain Abitbol, President and Chief Executive Officer of NHC. "We continue to invest in sales and research and development to position the Company as a leader in the global cross-connect market. With this financing, plus current cash and anticipated cash flow from collection of revenues, NHC will have approximately CDN $6 million in cash, enough to execute our near term operational plans," said Sylvain Abitbol, President and Chief Executive Officer of NHC.
"In particular, this financing arrangement will enable us to continue with scheduled first office applications (FOAs) with several ILECs worldwide," continued Mr. Abitbol. "We are confident that the conclusion of these FOAs will lead to future sales of our ControlPoint(tm) solutions."
"This significant new commitment in our Company follows a thorough examination of our technology, products and business potential, and demonstrates Manchester's confidence in our business plan" said Mr. Abitbol.
NHC intends to use the net proceeds of this financing for working capital and corporate development purposes.
The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals. The common shares issuable in connection with this private placement have not been and will not be registered under the "United States Securities Act of 1933", as amended, and may not be sold or offered for sale in the United States or otherwise distributed in the United States, except in reliance on available registration exemptions.