Shawshank, VA 8/11/2011 (PennyPayDay) – Flint Telecom Group Inc. (OTC:FLTT), an international telecoms technology and services organization, today updates shareholders, in a press release, on the status of previously announced letters of intent to acquire U.S. based VoIP service providers that it has extended the planned closing dates for two of the three transactions. Due diligence on the third potential acquisition will continue on a non-exclusive basis.Flint management has taken this decision with the agreement of the parties involved to allow Flint progress ongoing negotiations with potential debt providers for the transactions in order to avoid using equity as the sole funding source given recently low share prices that would not be beneficial to shareholders at this time.
On June 16, 2011, Flint updated shareholders on the previously announced letters of intent to acquire three regional VoIP and telecom service providers with current annual revenues in excess of $2 million, $1.5 million and $3 million per year respectively. All of the planned acquisitions have existing customers, sustained revenue streams and positive net income from delivering next generation VoIP and data services to small and medium sized enterprises within the United States.
When ultimately completed, the three acquisitions would be immediately revenue and gross margin enhancing to Flint with net income of approximately 10%. Once fully consolidated, Flint management expects that the operating costs will be further reduced due to shared common services and network cost reductions that will deliver higher net incomes than are generated individually. Details of each transaction will be announced as definitive agreements are completed.
Vincent Browne, Chairman and Chief Executive of Flint Telecom Group, said, "We have structured these acquisitions to make them as cash neutral as possible with some cash at closing, deferred cash payments with stock and performance related earn-out elements. However, our recent share price means we would have to issue more shares than we had originally planned to complete these transactions within expected timeframes so we have opted to extend the closing dates where possible, to allow us continue our discussions with both existing and new debt holders and to review the share price moving forward in order to minimize the dilution to existing shareholders. We do not believe that existing shareholders would be best served at these levels. We will continue our negotiations with the acquisitions, and new funding providers to enable us close the transactions as soon as it is more economical to do so and will update existing and potential shareholders as we progress these discussions."
PennyPayday Free Stock Quotes and Approach to the Stock Market
PennyPayday focuses on bringing penny stocks and small-cap companies from all exchanges, such as (FLTT), into the spotlight for investors seeking early development opportunities. PennyPayday has quickly become a recognized penny stock site and a top source for investors seeking information and research on today's emerging hot stocks. PennyPayday provides the investing public with stock market daily news, free real-time stock quotes, free stock charts, research for investing, as well as economic stories, videos, and market briefs from a staff of experienced and dedicated financial journalists.
Sign up for our Free Newsletter today, and join the thousands already getting our emails on the hottest stocks to watch.
Disclaimer: Neither www.PennyPayday.com nor its officers, directors, partners, employees or anyone involved in the publication of this website or newsletters is a registered investment adviser or licensed broker-dealer in any jurisdiction whatsoever. PennyPayday may or may not have been compensated by mentioned companies: (FLTT). For full disclaimer/disclosure please read PennyPayday's disclaimer.
No comments:
Post a Comment