PLAYA DEL REY, Calif.-PortaCom Wireless Inc. announced Asian American Telecommunications Corp. has completed a total of $25 million in financing for its telecommunications joint venture in Sichuan province, China.
The AAT financing is comprised of an equity private placement of about $15 million and a $10 million convertible credit facility, said PortaCom. These direct investments in AAT have been arranged in lieu of completing the company’s previously announced $20 million private placement.
PortaCom said it has agreed to adjust the terms of its acquisition agreement with AAT to take into account the financing. PortaCom has agreed to issue 38 million common shares to the current AAT shareholders plus up to an additional 12.5 million common shares to the new AAT investors. As a result, PortaCom will have about 62.6 million primary shares outstanding. The revised acquisition agreement calls for AAT to fund its own operating expenses, contractual obligations and other liabilities until the acquisition closes. PortaCom expects its acquisition of AAT to close during the fourth quarter.
