LAS VEGAS-Chadmoore Wireless Group Inc., a provider of specialized mobile radio service, completed an agreement that ends options to acquire 5.5 million shares of its common stock at an exercise price of 50 cents per share.
These options remained outstanding from an original grant covering 8.3 million shares issued to Libero Ltd. as the primary compensation for Chadmoore’s June 1996 acquisition of more than 5,500 SMR channels. The balance of such options previously had been exercised, said Chadmoore.
In an unrelated transaction, Chadmoore has restructured its management and option-to-acquire agreements covering the 5,500 channels.
The transactions cancel the stock purchase, stock option and securities subscription, each dated June 14, 1996, as well as a restructuring of the management and option agreements to permit the exercise and transfer of individual licenses at Chadmoore’s discretion in exchange for mutual releases of rights to about 300 SMR channels.
“Utilizing options in the original transactions structure with Libero was both necessary and effective at the time, and enabled us to leapfrog most other SMR providers by acquiring rights to over 5,000 channels in a single transaction,” said Robert Moore, president and chief executive officer of Chadmoore. “In connection with that acquisition, our auditors, KPMG Peat Marwick, required us to obtain an independent appraisal of those channels, which was provided and valued the 5,500-plus channels at $75 million to $90 million.
“The elimination of an overhang that represented 25 percent of our currently issued stock, plus greater flexibility to put these licenses in our name quickly, is a very positive development for Chadmoore.”
