Towerstream Corp. (Nasdaq: TWER), one of the first companies to utilize WiMAX technology has agreed to sell $40 million of its stock at a 32 percent discount to Tuesday’s closing price of $5.87.Ten million Towerstream shares will be sold below-market value at $4 per share – the company said it intends to use the proceeds to increase operations in larger markets.
“The proceeds from this offering will provide us with the capital to build out our target markets and solidify our position as a WiMAX leader,” the company said in a statement.
Towerstream, a Worldwide Interoperability for Microwave Access (WiMAX) service provider, currently delivers high-speed Internet access to networks in New York City, Los Angeles, Chicago, San Francisco, Seattle, the greater Boston area, Newport, R.I., and Miami.
WiMAX is a wireless broadband technology alternative to cable and DSL – gaining popularity over WiFi because of its ability to cover greater distances – up to 10 miles compared to 150-300 feet with WiFi.
It’s a feature the company wants to push through the market place – and the offering announced today gives the company the capital necessary to do so.
“We have spoken with many investors who understand the value of our WiMAX business. We believe that there is a growing interest in the future of WiMAX and our position in the WiMAX marketplace,” said Jeff Thompson, Towerstream president and CEO in a press release. “The proceeds from this offering will provide us with the capital to build out our target markets and solidify our position as a WiMAX leader.”
The offering is expected to close June 11, 2007.
On May 31, 2007, the company moved from the OTCBB – Thompson rang the opening bell at The NASDAQ Stock Market at 9:30 a.m. on Friday, June 1, 2007, to commemorate Towerstream’s move to the NASDAQ.
