Cape Range, Arcadian Will Ask Shareholders to Approve Issue of
Shares Pursuant To Merger; Merged Company Will Proceed with Nasdaq Listing
PERTH, Australia, Feb. 6 /PRNewswire/ -- Cape Range Wireless Limited (ASX: CAG), a leading business accelerator specializing in last mile wireless solutions, today announced that documentation for its merger with Arcadian Wireless Inc. has been completed.
In addition to shareholder approval, the merger remains subject to due diligence and the execution of certain key contracts. Cape Range Chief Executive Officer Ron Wise said an explanatory statement will be provided to shareholders in due course.
Following the merger the Company will pursue a listing on the Nasdaq under the assigned symbol CAPE.
Cape Range's US Corporate advisor Mark R. Saunders at GTH Capital commented, "There is a significant potential market for the fixed wireless technology and therefore it is an important step to complete the merger that will pave way to the planned listing on Nasdaq. This transaction demonstrates the strong interest of investors in the technology."
Arcadian shareholders will receive ordinary shares of Cape Range in return for the 80 percent of Arcadian's share capital that Cape Range does not already own. Cape Range will also exchange the Arcadian employee options with Cape Range options. Mr. Wise said the non-executive staff and the engineering team retained under contract by AWI will receive approximately 12 percent of the consideration.
"Approximately 60 of these individuals are engineers," Mr. Wise added, "and their entitlement to the benefits of the allocation are dependent upon a further 3 years employment and availability to AWI exclusively in the field of wireless Internet communications. AWI's principals, Ken Margon and Tom Mathai, have agreed to provide their services in this field exclusively for not less than 3 years following the merger."
Mr Margon and Mr Mathai will join the Cape Range Board of Directors.
Mr. Wise said AWI has completed development of its proprietary spread spectrum wireless technology incorporating the patented (pending) Internet protocol known as iPMA (internet protocol multiple access).
"The products that have been developed by AWI address the rapidly growing wireless local loop (WLL) market to provide an integrated communications system at distances of up to 50 kilometers from existing backbone telecommunication networks," Mr. Wise declared.
The AWI products provide connections to optical fibre, copper wire and satellite based systems, and are able to deliver voice, data and video in one system at rates of between 2 and 11 Mb/second, depending on the application deployed. The iPMA protocol also permits 8 times the number of simultaneous voice calls over a given amount of bandwidth than protocols such as CDMA.
AWI's products are manufactured by independent contractors in Malaysia and the United States.
Mr. Wise said Cape Range's Board of Directors has determined that AWI is in advanced stages of negotiation for sales to established telecommunication companies ("telcos"), and that substantial contracts will shortly be signed.
AWI also has developed a partnership with Texas Instruments Inc., the leading supplier of digital signal processors, insuring that AWI will have on-going access to leading edge technology as it is being developed.
"The merger with AWI and the subsequent listing on Nasdaq will result in greater recognition of the relative value of Cape Range's securities by the international investment community and is a milestone in the company's corporate development," Mr. Wise declared.
In Malaysia AWI has installed a fully operating WLL network demonstrating the capabilities of iPMA-based products. A similar test site has been selected in Western Australia for essentially the same purpose, and rural markets for the technology are being sought in the US.
Cape Range Wireless is a fast growth business accelerator specializing in wireless telecom systems. Upon the completion of the merger with Arcadian Wireless, the Company will provide proprietary fixed wireless last mile solutions for voice, high-speed data and a range of hybrid telecommunications, focusing on rural areas. Its products are built to withstand the rugged weather extremes found in parts of Asia Pacific. Arcadian's strategic partner is Texas Instruments.
SOURCE Cape Range Wireless Limited
/CONTACT: Ron Wise, CEO, of Cape Range Wireless Ltd., +61-8-9322-4144, email@example.com; or Can Onen of The Anne McBride Company, 212-983-1702, ext. 212, firstname.lastname@example.org, for Cape Range Wireless Limited/
/Web site: http://www.caperangewireless.com/
CO: Cape Range Wireless Limited; Arcadian Wireless Inc. ST: Australia IN: TLS SU: TNM -0- Feb/06/2001 14:54 GMT