> TeraGo receives ISED approval for the licence transfers of Mobilexchange’s spectrum
Toronto – November 1, 2018 – TeraGo Inc. (“TeraGo” or the “Company”) (TSX: TGO, www.terago.ca), announced that it has received approval from Innovation, Science and Economic Development Canada (“ISED”) for the deemed licence transfers of six 24 GHz spectrum licences from Mobilexchange Spectrum Inc. (“MSI”) to TeraGo. The transfer of spectrum licences is in accordance with the previously announced acquisition of MSI and its parent holding company Mobilexchange Spectrum Holdings Inc. for aggregate cash consideration of $5.7 million.
“With ISED’s approval for the MSI spectrum licence transfers we expect to close our previously announced acquisition of MSI in the coming days,” said Tony Ciciretto, President and CEO of TeraGo. “The acquisition of MSI’s 24 GHz licences further strengthens TeraGo’s position as the primary holder of 24 and 38 GHz fixed wireless spectrum licences in Canada’s largest markets covering a total of 8.6 billion MHz-Pop1. We will look to leverage these assets to enhance our competitiveness and unlock greater value in our business.”
The licences held by MSI total 960 MHz and cover approximately 3.1 billion MHz-Pop1 in Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver. Each licence retains the same expiry date of May 25, 2025 following the deemed transfer.
This news release includes certain forward-looking statements that are made as of the date hereof. Such forward-looking statements may include but are not limited to statements regarding the acquisition by the Company of MSI and its Spectrum Licences, enhancement to TeraGo’s competitiveness and unlocking greater value for the business. All such statements constitute “forward-looking information” as defined under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts constitute forward-looking information. The forward-looking statements reflect the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including risks relating to the proposed acquisition of additional spectrum and those risks set forth in the “Risk Factors” sections in each of the Final Prospectus and the annual MD&A of the Company for the year ended December 31, 2017, which is available on www.sedar.com under the Company’s corporate profile. Factors that could cause actual results or events to differ materially include the inability to satisfy closing conditions contained in the share purchase agreement for the Acquisition, certain counterparty risks in dealing with the current shareholders of MSI and the assumption that there will be no material assets and liabilities of MSI on closing other than the Spectrum Licences. Until all the closing conditions are satisfied or waived, there can be no assurances that the Acquisition will be completed. Accordingly, readers should not place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TeraGo does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.
TeraGo owns and leases a national spectrum portfolio of exclusive 24GHz and 38GHz wide-area spectrum licences including 2,120 MHz of spectrum across Canada’s 6 largest cities. TeraGo provides businesses across Canada with cloud, colocation and connectivity services. TeraGo manages over 3,000 cloud workloads, operates five data centres in the Greater Toronto Area, the Greater Vancouver Area, and Kelowna, and owns and manages its own IP network. The Company serves business customers in major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and was recognized by IDC as a Major Player in MarketScape Cloud Vendor Assessment. TeraGo Networks was also selected as one of Canada’s Top Small and Medium Employers for 2017.
For further information, please contact:
TeraGo Investor Relations
Dennis Fong, LodeRock Advisors Inc.
1Based on ISED’s population figures for 2011.