PICK Communications Signs Letter of Intent To Sell PICK Net Telecommunications Subsidiaries.WAYNE, N.J.--(BUSINESS WIRE)--Aug. 17, 1999-- PICK to Focus on Satellite-Based Internet Access See how to access the Internet. PICK Will Divest Approximately $10 Million in Liabilities, Substantially Cutting PICK Communications' Debt PICK Communications Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :PICKD), a provider of satellite-based broadband Internet See broadband. services, today announced that it has entered into a letter of intent to sell its three telecommunications subsidiaries--PICK US, PICK Net, and PICK Net UK--to Lebow Investments Ltd., a newly formed entity. PICK's telecom units provide international long-distance telephone services to other carriers and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. services. Lebow will purchase 100 percent of the capital stock of all three subsidiaries for nominal cash consideration. The letter of intent specifies that the buyer will assume responsibility of up to $10 million of the outstanding debt of PICK Communications Corp. Some of the debt is still subject to PICK Communications' corporate guarantees. Upon completion of the transaction, the majority of the consolidated PICK Communications Corp. debt remaining on the books would consist of approximately $9.8 million, plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , of convertible notes due in April 2002 and the PICK Sat, Inc. operating liabilities. As a result of entering into the letter of intent, PICK Net, Inc. has begun to receive partial funding to continue operations. The letter of intent calls for the buyer, upon closing of the agreement, to be financially responsible for all three telecommunication subsidiaries, effective August 2, 1999. PICK Communications and the buyer have agreed to sign a definitive agreement as soon as possible and expect to close the transaction on or before September 1, 1999. "The sale of our PICK Net telecommunications unit will improve our financial position and allow us to focus the company's full resources on the growth and development of PICK's satellite-based broadband Internet business," said Diego Leiva, chairman of PICK Communications. "PICK's satellite-based solutions are deployable now and represent a cost effective means to deliver high bandwidth Internet access. We firmly believe that sharpening our focus in this promising area will deliver maximum value to our shareholders." The closing is subject to receipt of any necessary government approvals, third party consents and other customary closing conditions. The company's headquarters in Wayne, N.J. will be transferred to the buyer as part of the divestiture. PICK Communications will move its headquarters to Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe. Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. , site of PICK Sat's network operations center See NOC. Network Operations Center - (NOC) A location from which the operation of a network or internet is monitored. Additionally, this center usually serves as a clearinghouse for connectivity problems and efforts to resolve those problems. (NOC (Network Operations Center) A central or regional location for monitoring a large network. Also called a "network management center" (NMC), "service management center" (SMC) or "network control center" (NCC), a NOC may be used to manage a large enterprise network, ), which is under construction. PICK Communications Corp., headquartered in Wayne, N.J., operates Miami, Florida-based PICK Sat Inc., which provides satellite-based broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a and PICK Online.Com Inc., a media-content aggregator for Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. (ISPs) and Broadband Networks, including Cable Modem and Asynchronous Refers to events that are not synchronized, or coordinated, in time. The following are considered asynchronous operations. The interval between transmitting A and B is not the same as between B and C. The ability to initiate a transmission at either end. Digital Service Line (ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line ) service providers. More information is available at PICK Sat's new Web site, www.picksat.com, and at www.pick-online.com and www.pickradio.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. These statements are not guarantees of future performance. The Company's actual future results could differ materially from the forward-looking statements discussed herein or implied by such forward-looking statements. The risks and uncertainties associated with these statements include the Company's ability to complete the divestiture of its PICK Net and PICK US businesses, implement its new business plan and strategy and launch its PICK Sat services, the Company's immediate need for additional funding, the repayment of substantial short-term indebtedness, significant and continuing losses, dependence on a limited number of clients, dependence on and obligations to third-party carriers, dependence on the Internet, timely development and acceptance of new products in the constantly evolving Internet industry, the impact of competitive products and pricing, government regulations and the other risk factors detailed from time to time in the Company's SEC reports. The forward-looking statements contained in this press release speak only as of the date hereof and the Company disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events. |
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