"GIVEN THE difficult economic environment over the past few years, we have been focusing our efforts on the acquisition of other wireless Internet service providers in both existing and new market," Towerstream said.
By Kimberley Donoghue PBN Web Editor Twitter: @ kdonog
MIDDLETOWN – Broadband service provider Towerstream Corp. filed a registration statement with the U.S. Securities and Exchange Commission on Jan. 20 related to the stockholder sale of 1,015,723 shares of common stock.
Towerstream, trading as “TWER,” noted that the last reported sale price of its common stock Jan. 19 was $2.28 a share.
The stock comes with a “high degree of risk,” it said. In a list of the risk factors, the company noted that it depends on the continued availability of leases and licenses for its communications equipment; it has a history of operating losses and expects to “continue incurring losses for the foreseeable future.”
Cash and cash equivalents, it said, represent one of its largest assets and “in light of the recent market turmoil among financial institutions and related liquidity assets, we may be at risk of being uninsured for a large portion of such assets or having timing problems accessing such assets.”
Company executives control 12 percent of the outstanding common stock, it said.
“Give the difficult economic environment over the past few years, we have been focusing our efforts on the acquisition of other wireless Internet service providers in both existing and new markets. We believe there are significant opportunities to acquire smaller, locally based service providers,” it said. Many of the smaller providers have a solid network and solid customers base but have been adversely affected by the significant capital requirements associated with building and maintaining a network, it noted.