Clearnet Closes Cdn.$239 Million Equity Financing Underwriters' Option Exercised.PICKERING, Ontario--(BUSINESS WIRE)--May 22, 1996--CLEARNET COMM.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME: NET.A 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 : CLNTF ) Clearnet Communications Inc. ("Clearnet" or "the Company") today announces that the Company has successfully closed an underwritten cross-border public offering in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. of 9,200,000 of its Class A Non-Voting Shares at Cdn. $26.00 (U.S. $19.00) per share for total gross proceeds of approximately Cdn. $239.2 million (U.S. $174.8 million). As a result of investor demand, the underwriters exercised an option to purchase an additional 1.2 million shares at the offering price to cover over-allotments. Clearnet has approximately 40 million Class A Non-Voting Share Equivalents outstanding after completion of this issue including the issuance of shares pursuant to the underwriters' over-allotment option. Proceeds of the offering will be used to fund a portion of the capital requirements (capital expenditures and negative operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. ) to be incurred in connection with the build-out of the Personal Communications Services See PCS. ("PCS") and Business Communications Services ("BCS") networks and for general corporate purposes. (BCS is also referred to as Enhanced Specialized Mobile Radio See SMR. or "ESMR ESMR Enhanced Specialized Mobile Radio ESMR Extended Specialized Mobile Radio (Nextel) ESMR Expert Systems Message Router ESMR Electrically/Electronically Scanned/ing Microwave Radiometer ESMR Engine Starter Motor Relay " services.) The underwriting syndicate was lead-managed by Morgan Stanley Canada Limited and RBC Dominion Securities
According to Robert McFarlane, Clearnet's Vice President and Chief Financial Officer, "the equity offering represents a major achievement for Clearnet and an important component of the Company's financial strategy. The issue was quite successful with about 60 institutions purchasing shares in addition to healthy retail demand in both Canada and the United States creating a level of interest which allowed the underwriter's option to be exercised and the issue to be increased in size. As a result of this offering, Clearnet has now raised over Cdn. $635 million in capital since the October 1994 initial public offering in addition to the $100 million tranche of the unutilized senior bank credit facility canceled in December 1995." Clearnet is a Canadian wireless communications company which was recently awarded a national 30 MHz PCS licence in Canada. Clearnet currently provides dispatch communications services in over 40 cities across Canada and plans to launch PCS in a number of Canada's densely populated regions in mid-1997. In addition, Clearnet is currently in the process of building-out its BCS digital network in the Ontario-Quebec coverage area utilizing Enhanced Specialized Mobile Radio ("ESMR") technology, with commercial implementation anticipated in mid-1996. The Company's news releases are now available through Canadian Corporate News' Internet Home Page: http://www.cdn-news.com CONTACT: Clearnet Communications Inc. Robert McFarlane, 905/837-3007 INTERNET: http://www.clearnet.com E-MAIL e-mail: see electronic mail. in full electronic mail Messages and other data exchanged between individuals using computers in a network. : investorrelations@clearnet.com |
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