Ruralink Broadband Enters into LOI with Rift Valley Ventures
TORONTO, Oct. 12, 2022 /CNW/ -- Ruralink Broadband Inc. (Ruralink) announced that it has entered into a binding letter of intent with Rift Valley Ventures Ltd. (RVR).
When the transaction is completed, RVR will acquire all the issued and outstanding securities of Ruralink. The shareholders of both companies will become security holders of the combined entity.
Upon completion of the transaction, the entity will carry on the business of Ruralink and apply to list its common shares on the Canadian Securities Exchange (CSE).
"This is an important corporate milestone that we've been working toward for a long time," said Vern Fotheringham, Ruralink's chairman.
Ruralink is developing a next-generation wireless network that will bring high-quality broadband and broadcast TV Internet services to meet the pent-up demand of millions of people in underserved markets across the U.S.
"42 million Americans have no access to wired or fixed wireless broadband," Fotheringham said. "We will tackle the "broadband divide" by using new broadcast Internet technologies and existing wireless infrastructure to deliver cost-effective Internet access and high-demand video and broadband content."
Over the next five years, Ruralink plans to expand to 50 underserved markets in the U.S., which includes 38 million people and 15.8 million households.
A key part of Ruralink's business is an industry-leading broadcast Internet overlay that transforms legacy television broadcast facilities into Internet-compatible systems that distribute high-volume Over the Top (OTT) video streaming content at significantly lower prices for content owners, distributors, consumers and enterprise customers.
"What we're doing is disruptive and leverages an elegant architectural approach to deliver exceptional Internet access, largely over existing infrastructure but with cutting edge hardware, established technology partners, and highly efficient use of wireless spectrum. Our approach greatly reduces the capital to build the equivalent bandwidth using traditional unicast network approaches," Fotheringham said.
Ruralink is building a hybrid wireless broadband-broadcast Internet network in collaboration with leading technology companies. Ruralink is addressing broadband divide challenges that exist geographically or economically for under-served rural and urban consumers, enterprise customers, and ISPs.
To learn more, contact:
Vern Fotheringham
Chairman, Ruralink
[email protected]
425-442-4065
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.
There is no assurance RVR's proposed acquisition of Ruralink will complete on the terms outlined above or at all. The proposed acquisition is subject to a number of conditions precedent, some of which are beyond the control of the Company. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Ruralink Broadband Inc.
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