To sell spectrum rights for an aggregate consideration of $5.75m.
Canada-based Craig Wireless Systems has signed an agreement with the US-based Everest Wireless Partners I, to sell a one-half interest in the licenses for spectrum rights held by the company in Norway and New Zealand for an aggregate consideration of $5.75m.
It is a condition of the sale that Craig Wireless and Everest need to receive all required government and regulatory approvals by March 31, 2009. Once all requisite approvals have been obtained, the licenses will be transferred into two new wholly owned subsidiary companies of the company, both of which are to be incorporated under the laws of the Cayman Islands.
According to Craig Wireless, 50% of the issued and outstanding shares of each new subsidiary will be sold to Everest for an aggregate consideration of $5.75m. Boyd Craig and Drew Craig have consented to the transaction in their capacity as the company’s senior lenders and have agreed that they will not require that the proceeds of the sale be used to reduce amounts owing to them by the company.
Mr Craig, co-CEO of Craig Wireless Systems, said: We are very pleased to announce this joint venture with Everest. The investment by Everest Wireless in our Norway and New Zealand spectrum assets demonstrates the relative stability of the value of our current spectrum asset portfolio in spite of the current condition of the global markets.