A subsidiary of Victoria’s Vecima Networks Inc. (TSX:VCM) has raised $14 million by selling a portion of its radio spectrum to a partnership owned by Rogers Communications and Bell Canada.
The deal with Inukshuk Wireless Partnership involved approximately 7.5% of the Canadian spectrum, owned by Vecima’s YourLink Inc.
“We are pleased that this agreement provides strong evidence of the significant value contained within Vecima’s asset base built over 22 years of profitable operations,” said Surinder Kumar, Vecima’s president and CEO.
“The transition to another spectrum will allow us to not only introduce a new generation of our own advanced Internet radios, but also expand service speed and bandwidth to our growing customer base.”
The deal remains subject to customary closing conditions and regulatory approvals, but is expected to close in several phases as the approvals are received.
YourLink will ensure a smooth transition of its Internet customers to an alternate spectrum owned by YourLink, which will open up capacity and bandwidth for those customers.
YourLink currently provides video and broadband Internet access to approximately 19,000 customers through digital wireless services in Saskatchewan and several small cable TV systems in rural B.C.
Following the sale of the spectrum, YourLink will transition its wireless video customers in Saskatchewan to other service providers.
Vecima’s share price range during the past week: between $3.99 and $4.29; 52-week high: $7.50; 52-week low: $3.79.