Total Telecom Inc. said today that it has entered into a Memorandum of Understanding to sell its wholly owned subsi...
November 7, 2005
Total Telecom Inc. said today that it has entered into a Memorandum of Understanding to sell its wholly owned subsidiary, Total Telcom Fiber Inc. to an undisclosed third-party.
Under the terms of the MOU, the company will receive an estimated $4.7 million in cash and a further 90% of the proceeds of any future fiber sales or assignments of the existing unencumbered fibers in the network over the next five years.
The sale is subject to the completion of the due diligence by the purchaser on or before Nov. 21 and final approval of the definitive agreement by the Board of Directors. The transaction is scheduled to close on Dec. 1.
The Edmonton-based company owns, operates and manages a fiber optic network currently providing bandwidth, lit and dark fiber optic services to communities in Alberta and British Columbia.