DENVER-American Digital Communications Inc. has finalized and closed the transaction to sell its 220 MHz network to Intek Diversified Inc.
Upon closing, American Digital repaid debt of approximately $1 million to Ventel Ltd., which was incurred to buildout the initial 13 network systems in 1996.
American Digital also repurchased around 1 million shares of its common stock that it issued Securicor in August 1996 as partial payment for the second 13 system it constructed. This reduced American Digital’s outstanding debt by almost 5 percent.
The company received a net of about 400,000 Intek Diversified common shares and an additional 2.6 million shares of Ventel.
“American Digital is pleased to finally conclude this transaction,” said Gene Klawetter, American Digital chief executive officer. “We believe the company is positioned to move forward in a very positive manner.”
