Telehop Communications Inc. today announced its expansion into Wireless Services by signing a Letter of Intent to acquire G3 Telecom's Business including wireless and United States operations, and a private placement of $3 million of 10% unsecured 5 year debentures.
The purchase price for the business will be $4.3 million, payable $2.0 million in cash on closing and, $1.5 million over 24 months with interest at 5%, and $800,000 by the issuance of 8 million common shares of Telehop. The proceeds of the debentures will finance the cash payment and the closing and integration costs of the new G3 business with Telehop. Mr. Rajan Arora, the CEO of G3, will join the board of Telehop on completion of the acquisition. The transaction is subject to the approval of the TSX Venture Exchange.
"Last year we purchased the business services division from G3 which has worked out successfully," said CEO Rajiv Jagota. "Today we are complementing our business with the fast growing wireless telecom business to round out our product line. This acquisition is transformational for Telehop as it will double its revenue base, and combine land line services with wireless services which will provide synergies among our 2 customer bases, and offer economies of scale to improve bottom line performance in the future."
"I'm excited about the opportunity to combine these companies and truly leverage the strengths of each organization," said Rajan Arora. "Combined together we should be able to grow and expand into new markets with size and scale."
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