CALGARY, Alberta -- (BUSINESS WIRE) -- Jan. 14, 2013--Platinum Communications Corporation (TSX-V: PCS) announced today that it has entered into a Letter of Intent (“LOI”) to acquire the fixed wireless network assets and customers of 1574002 Alberta Ltd. o/a XpanServ (“XpanServ”). This acquisition, which is subject to the execution of a formal agreement, is expected to close within the next 60 days. The purchase price of $530,000 is subject to due diligence and other closing conditions that are standard for this type of transaction.
Platinum will add approximately 400-500 residential and commercial customers. Of greater significance to Platinum is the acquisition of all of the underlying towers, shelters, colocation leases and transmitting gear that will substantially expand its footprint to the east into the communities of Rockyford, Drumheller, Brooks, Jenner and Foremost. Additionally, Platinum will be making its first entry into the Peace River Region, 460 miles northwest of Edmonton, with an established network covering the communities of Grand Prairie, Rycroft, Fairview and Weberville among others.
Bernard Parkinson, President & CEO, states, “This is a key acquisition as it materially expands our network footprint into new markets and, with the current ratio of customers to towers, we see opportunities for additional revenue growth.
With the closing of both this acquisition and the previously announced acquisition of Community Networks Inc. Platinum’s customer base will grow to approximately 13,750, which represents a 60% increase over the prior year.
ABOUT PLATINUM COMMUNICATIONS
Platinum Communications Corporation (TSX-V: PCS) is a leading provider of superior quality fixed wireless Internet and Broadband solutions in Alberta serving approximately 13,750 customers. Based in Calgary, Platinum operates a custom-built wireless broadband network that utilizes Next-Generation WiMax technology to bring fast, reliable and affordable Internet services and digital phone solutions to residents and businesses across the Province using licensed and unlicensed spectrum that extends from the north of Grande Prairie to the Alberta/US border and from Medicine Hat to Banff. Platinum caters to urban, rural and remote markets that are often beyond the reach of traditional Internet providers. For more information, please visit our website at www.platinum.ca or call 403-301-4591.
This news release may contain forward-looking statements. These forward-looking statements do not guarantee future events or performance and should not be relied upon. Actual outcomes may differ materially due to any number of factors or uncertainties, many of which are beyond Platinum's control. Some of these risks and uncertainties may be described in Platinum's corporate filings (posted at www.sedar.com). Platinum has no intention or obligation to update or revise any forward-looking statements due to new information or events. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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