QUEBEC, April 13, 2016 /PRNewswire/ - NuRAN Wireless Inc. ("NuRAN Wireless" or the "Company") (CSE: NUR), is pleased to announce that it has closed an acquisition of certain mobile network hardware, software and other intangible assets owned by an Asian based group of consultants (the "Vendors") pursuant to the terms of an asset purchase agreement between the Company and the Vendors.
Under the terms of the asset purchase agreement, Nuran agreed to issue up to 3,247,250 common shares at a deemed value of CDN$0.25 per share (or CDN$812,000) as consideration for the assets subject to the completion of certain milestones as further set out in the agreement. Under the terms of the agreement the Vendors will collectively receive an aggregate of: 1,948,350 common shares at closing, 649,450 common shares upon completion of certain milestones on or before August 1, 2016 and a further 649,450 common shares upon completion of a final milestone on or before October 28, 2016 as further set out in the agreement. In connection with the asset acquisition Nutaq Innovation Inc., a wholly owned subsidiary of the Issuer, entered into a technology support agreement with Shenzen Afarcom Limited ("Afarcom"), an entity owned by the Vendors, pursuant to which Afarcom agreed to provide certain engineering and technology support services in connection with the use of the assets acquired in consideration of a monthly fee of US$35,000 for a term of two years from the closing date. Also in connection with the closing of the asset purchase agreement each of the Vendors agreed to sign a lock up agreement pursuant to which they agreed not to transfer or sell any shares acquireable under the asset purchase agreement for a period of 12 months following closing subject to certain exceptions as further set out in the lock up agreement.
The Company believes that this strategic acquisition allows Nuran to offer a complete mobile and broadband solution and the ability to secure the Nuran solution as the leader in rural and remote mobile connectivity. In addition, management also believes it reinforces NuRAN's strategic positioning towards new and small operators by offering an end-to-end mobile small-cell network solution with the lowest Total-Cost-of-Ownership (TCO) on the market. This accretive acquisition is intended to allow NuRAN the opportunity to bring cellular coverage to emerging market where the return on investment (ROI) was previously simply too low.
"This acquisition is further testimony of our commitment to provide best-of-breed and best-in-class radio access solutions to existing mobile operators, big or small, and innovative end-to-end network solutions [redundant] to green-field operators, all with the common goal of connecting the next billion" stated Martin Bedard, co-President of Nuran Wireless Inc.
About NuRAN Wireless
NuRAN Wireless is a leading supplier of mobile and broadband wireless solutions. Its innovative GSM, LTE, and White Space radio access network (RAN) and backhaul products dramatically drop the total cost of ownership, thereby creating new opportunities for mobile network operators and internet service providers.
The Company provides a variety of specialist systems for indoor coverage, rural and urban connectivity in emerging markets, connectivity to offshore platforms and ships, and for emergency and crisis communications.
No regulatory authority has approved or disapproved the information contained in this news release. The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
SOURCE Nuran Wireless Inc.