CAI WIRELESS COMPLETES ACQUISITION OF MICROBAND THROUGH SUBSIDIARY NEW YORK CHOICE TELEVISION.ALBANY, N.Y.--(BUSINESS WIRE)--January 10, 1995--CAI Wireless Systems, Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CAWS), a leading owner and operator of wireless cable systems in the Northeast and mid-Atlantic regions, today announced that it purchased through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. New York Choice Television, Inc., the assets of Microband Wireless Cable Corporation and affiliated companies. CAI was previously named the winning bidder for the Microband assets, which comprise a wireless cable system operated in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in a proceeding before the U.S. Bankruptcy Court for the Southern District of New York held on December 22, 1994. Microband presently has approximately 24,000 subscribers in the New York market. There are in excess of 2.5 million line of sight (LOS) households in the New York Metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. and the system has approximately $15,000,000 in annual revenues. With the purchase of Microband in the New York City market, CAI now has over 8 million line of sight households and 34,000 subscribers, Chief Executive Officer Jared Abbruzzese said in announcing the closing of the Microband deal. The acquisition realizes our strategic goal of expanding coverage to all the largest markets in the Northeast, and we believe positions CAI for rapid subscriber growth. The consideration paid by CAI totaled $39,050,000 comprised of $10,000,000 in cash, $18,050,000 in CAI 8 percent redeemable convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and $11,000,000 in a 12 percent short-term note to New York Life Insurance Company The New York Life Insurance Company (NYLIC) is the largest mutual life-insurance company in the United States, and one of the largest life insurers in the world.[3] , the senior secured creditor of Microband in the bankruptcy. The preferred stock is convertible to common stock at the lesser of market price at time of conversion or $11 per share within three years and is redeemable within five years. A portion of the cash consideration paid by CAI was financed through the issuance of 12 percent short-term notes with detached warrants. The aggregate principal amount of the notes is $5,250,000 with warrants to purchase 603,448 shares of CAI common stock. The exercise price for the warrants is $8.70 if the debt is repaid within four months. CAI Wireless Systems, Inc., operates wireless cable systems in New York City as well as Rochester and Albany, NY, and Norfolk/Virginia Beach, VA. CAI also is participating in Video Dial Tone (communications) video dial tone - A means by which telephone companies can deliver "television" programs on a common carrier basis and, by law, provide equal access to all. Tests with Rochester Telephone in Rochester, NY, and Southern New England Telephone The Southern New England Telephone Company (commonly referred to as SNET by its customers) started operations on January 27, 1878 as the District Telephone Company of New Haven. It was the founder of the first telephone exchange, as well as the world's first telephone book. in Hartford and Fairfield counties, Connecticut. The Company s portfolio of wireless channel rights includes packages on Long Island and in Buffalo and Syracuse, NY, Hartford, CT, and Boston, MA. The Company also is pursuing strategic relationships with regional telephone companies for low cost video distribution. CONTACT: The Anne McBride Company
Anne S. McBride, 212/752-0504
or
CAI Wireless Systems Inc.
Jared E. Abbruzzese, 518/462-2632
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