SR Telecom Sells Remaining WiMAX Assets
SR Telecom, the bankrupt WiMAX specialist has agreed to sell the bulk of its assets to fellow Canadian firm, Groupe Lagassé for just over US$6 million - in a deal which saves some of the company but leaves nothing for its shareholders. The shares last traded at half a cent, representing a market value of $3.7 million.
Under terms of the agreement, Groupe Lagassé will purchase SR Telecom’s brand, trademarks, intellectual property, patents, inventories and equipment relating to its symmetryMX product line. It is not expected that SR Telecom shareholders will receive any value out of the proceeds of such sale.
SR Telecom filed for creditor protection under the CCAA on November 19, 2007. On February 29, 2008, it announced that it had obtained an order from the Québec Superior Court to extend the period of the Court-ordered stay of proceedings against SR Telecom under the CCAA to May 2, 2008.
The transaction, once completed, will provide continuity for SR Telecom’s international customer base and permit the Company to grow and capitalize on its many WiMAX opportunities. The transaction, which is subject to certain closing conditions and court approval, is expected to close on or before April 4, 2008.
“Groupe Lagassé had been searching for ways to tap in to the WiMAX market for quite some time,” said Louis Lagassé, Chairman of Groupe Lagassé. “In SR Telecom, we saw an organization possessing a solid business plan, a strong management team, a significant order pipeline, and an unequalled depth of expertise and experience in wireless telecommunications. This acquisition allows us to leverage the synergies between our current organization and SR Telecom to immediately enter the rapidly-growing global WiMAX market as a major player with a feature-rich, field-proven product line.”
SR Telecom, a company with a 25 year heritage took a disastrous punt on the WiMAX platform and focused its entire activities on the technology in late 2006.
Posted to the site on 25th March 2008
