First Avenue Networks Signs Letter of Intent to Acquire Teligent Assets
2004年7月8日 - 8:31PM
PRニュース・ワイアー (英語)
First Avenue Networks Signs Letter of Intent to Acquire Teligent
Assets Raj Singh to Join First Avenue's Board of Directors
CHARLOTTESVILLE, Va., July 8 /PRNewswire-FirstCall/ -- First Avenue
Networks (OTC:FRNS) (BULLETIN BOARD: FRNS) , the industry leader in
leasing millimeter wave spectrum, today announced that it has
signed a letter of intent with Teligent, Inc. to acquire Teligent's
24 GHz spectrum licenses, fixed wireless broadband operations and
radio assets in a stock transaction valued at approximately $99
million. It also announced that Rajendra "Raj" Singh, Ph.D., is
expected to join First Avenue Networks' board of directors at the
consummation of the transaction. Following the acquisition, First
Avenue will hold over 700 MHz of spectrum at 24 GHz and 39 GHz in
the top 75 U.S. markets. This combination represents an
unparalleled collection of millimeter wave spectrum assets with
ubiquitous coverage in the United States. "Acquiring Teligent's
assets and operations will enable us to expand our high-speed
broadband wireless access service offerings. We anticipate
extending these networking advantages to Teligent's customers,"
said Dean Johnson, president and CEO, First Avenue Networks. "We
look forward to Dr. Singh joining our board of directors. His
expertise in the telecom industry is well established and his
guidance will be an invaluable asset as we commercialize our new
holdings." An industry-renowned pioneer, Singh's contributions to
the academic and professional development of the telecommunications
industry span over 20 years. He is the founder of LCC International
and Telcom Ventures, and a principal early investor in XM Satellite
Radio and Aether Systems. He co-developed the predecessor concept
for Teligent, which was the basis of the company's formation in
1997. First Avenue Networks' principal markets for fixed wireless
broadband are mobile telephony backhaul, extensions of the metro
fiber network for last mile access, and Internet service providers
that provide voice over IP as well as traditional data services.
Data rates ranging from 45 Mbps to fiber-equivalent 622 Mbps are
easily deployed in First Avenue's frequencies using widely
available, carrier class radio technology. Innovations in radio
equipment as well as increasingly common component standards, such
as WiMAX (IEEE standard 802.16), are greatly improving the
economics of wireless infrastructure deployments. These improved
industry economics, coupled with access to licensed spectrum, are
stimulating growth in the broadband wireless market and can provide
an extremely cost effective transport medium for high-speed data,
voice and video. "We launched our 39 GHz leasing products to help
catalyze the broadband wireless market by facilitating fast and
cost-effective access to licensed spectrum. Wireless carriers large
and small have endorsed the First Avenue Networks business model,
as evidenced by our successful leasing track record. Building upon
this momentum, we foresee significant business opportunities with
Teligent's asset portfolio," concluded Johnson. In consideration
for the assets, First Avenue will issue approximately 25.2 million
common shares and warrants to purchase an additional approximately
2.5 million common shares, or approximately 49.9% of its fully
diluted shares after giving effect to this transaction. On July 7,
2004, First Avenue common stock last bid price was $3.60 per share,
which would value the transaction at approximately $99 million. The
terms and conditions of the acquisition agreement are subject to,
among other conditions, due diligence, FCC approval and negotiation
and execution of final documentation. The transaction is expected
to close in the fourth quarter of 2004. About First Avenue Networks
First Avenue Networks (OTC:FRNS) (BULLETIN BOARD: FRNS) , the
industry leader in leasing millimeter wave spectrum, is committed
to advancing industry economics in conjunction with equipment
innovation and growing standardization, including WiMAX (IEEE
standard 802.16). First Avenue provides the fastest, simplest, most
cost-effective way for telecommunication providers to build
reliable, high-speed wireless networks. Its spectrum leasing
products, Express Link and Express Net, remove many of the barriers
traditionally associated with deploying fixed wireless broadband
networks. First Avenue Networks holds over 750 FCC-issued licenses
for 39 GHz spectrum, covering virtually the entire United States.
For more information, please visit the company's web site at
http://www.firstavenet.com/ or call 301-524-5900. The above
information includes forward-looking statements regarding the
consummation of the proposed acquisition, securities trading and
the provision of services by the Company and other opportunities in
the Company's marketplace. These statements are not guarantees of
future performance. Known and unknown risks, uncertainties, and
other factors, including without limitation, the risk that the
proposed acquisition will not be consummated, the risk that the
Company will be adversely affected by consummating the acquisition,
capital constraints, changes to or failure to execute the Company's
strategy and business plan, non-renewal or revocation of FCC
licenses, variable customer demand, technological risks, ability to
manage growth, competition and government regulation and other
risks may cause actual results to differ materially from the future
results implied or expressed in the forward-looking statements.
Many of these risks and uncertainties are further discussed in our
most recent filings with the Securities and Exchange Commission,
including our annual report on Form 10-K for the fiscal year ended
December 31, 2003. The Company does not undertake to and expressly
disclaims any obligation to update or revise its forward-looking
statement publicly to reflect any change in these forward-looking
statements, or in events, conditions or circumstances on which any
such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in the
forward-looking statements. DATASOURCE: First Avenue Networks
CONTACT: Linda Pitt of GAJ Services Inc., +1-859-291-1005, , for
First Avenue Networks; or Dean Johnson of First Avenue Networks,
+1-434-220-4994l,
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