Press release from Marketwire
Vecima Reaches Agreement to Dismiss Legal Proceedings and Sell Additional Radio Spectrum
Monday, July 08, 2013
Vecima Reaches Agreement to Dismiss Legal Proceedings and Sell Additional Radio Spectrum08:00 EDT Monday, July 08, 2013
VICTORIA, BRITISH COLUMBIA--(Marketwired - July 8, 2013) - Vecima Networks Inc. (TSX:VCM), an experienced designer and manufacturer of innovative technology in the broadband equipment market, today reported that it has sold certain of its 3.5 GHz radio spectrum licenses to Inukshuk Wireless Partnership ("Inukshuk") for $4.0 million. In connection with the sale, Inukshuk has consented to an order to dismiss, without costs, the legal action Inukshuk filed against Vecima in Ontario Superior Court. The legal action was reported in Vecima's press release of December 19, 2012.
In a press release issued on July 12, 2012, Vecima announced that its estimate of the remaining value of its radio spectrum holdings was between $10.0 to $15.0 million. Since that time, Vecima has entered into three transactions to sell spectrum, including today's announced transaction, for total proceeds of approximately $14.1 million. Vecima continues to hold radio spectrum licenses in the 24 and 38 GHz range as well as those licenses which are used by its YourLink subsidiary.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.
Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management's intentions, belief or current expectations with respect to market and general economic conditions, future sales, future shipping volumes, future cash position, revenue expectations, future costs, future operating performance, plans to sell non-core assets, and plans to continue to explore opportunities to maximize shareholder value, including the possibility of future cash dividends and distributions. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima's operations and industry and customer demand that may have a material impact on, or constitute risk factors in respect of Vecima's future financial performance, as set forth under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2012, a copy of which is available at www.sedar.com. In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, as a result of new information, future events or otherwise, except as required by law.
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