Business
Total Telcom Announces Agreement to Sell Subsidiary
Total Telcom Announces Agreement to Sell Subsidiary.
About this update from Total Telcom Inc.
[{"type":"text","content":"\n\n\n\n\nTrading symbol: TTZ: TSX Venture\nWebsite: www.totaltelcom.com \n\nEDMONTON, Nov. 7 /CNW/ - TOTAL TELCOM INC. (TSX Venture: TTZ) announces\ntoday the that it has entered into a Memorandum of Understanding to sell its\nwholly owned subsidiary, Total Telcom Fiber Inc. to an undisclosed third\nparty. Total Telcom Fiber Inc. holds all of the Corporation's fiber network\nassets and a significant cash position that will be included in the sale.\nUnder the terms of the MOU, the Corporation will receive an estimated\n$4.7 million in cash and a further 90% of the proceeds of any future fiber\nsales, IRU's or assignments of the existing unencumbered fibers in the network\nover the next 5 years. The Agreement is subject to the completion of the due\ndiligence by the purchaser on or before November 21, 2005 and final approval\nof the definitive agreement by the Board of Directors. The transaction is\nscheduled to close on December 1, 2005.\n\nTotal Telcom owns, operates and manages a Fiber Optic Network currently\nproviding Bandwidth, Lit and Dark Fiber-Optic Services to communities in\nAlberta and British Columbia.\n\nROM Communications (wholly owed subsidiary of Total Telcom Inc.) provides\n\"Web to Wireless\" products and services across North America for remote\ncontrol, monitoring and asset management. ROM is an authorized airtime\nreseller and hardware developer for satellite, control channel and wireless IP\nNetworks. The Corporation derives revenues from the sale of proprietary and\nthird party hardware and residual income from ongoing monthly access fees.\n\n\"The TSX Venture Exchange does not accept responsibility for the adequacy\nor accuracy of this release.\"\n\n\n\n","length":1746,"tagName":"div"}]