ERF Wireless Signs Multi-Million Dollar Letter of Intent to Sell a Portion of Non-Core Network Assets
Proceeds Will Be Used to Retire Some Debt and Grow High-Margin Revenue
May 21, 2014 --
LEAGUE CITY, TX -- (Marketwired) -- 05/21/14 -- ERF Wireless Inc. (OTCQB: ERFB), the operator of the nation's largest terrestrial wireless broadband network servicing the domestic oil and gas sector, today announce that it has signed and confirmed a multi-million dollar Letter of Intent with one of the nation's largest network operators that desired to obtain specific assets from the ERF Wireless family of businesses. These assets are neither fundamental to continued operations nor are they considered core to our overall business plan stated Dr. Dean Cubley, CEO of ERF Wireless, Inc. Dr. Cubley continued, "This asset divestiture allows us to use the proceeds for two distinct purposes. Foremost, we will use a portion of these proceeds to pay down some of the debt on our balance sheet that has historically been a detraction from the true value of ERF Wireless common stock. Second, a portion of these proceeds will be invested into expansion of our already successful Oil and Gas division to better serve this growing segment. This activity is expected to not impede our existing operations, customers, or employees, and be completed within the next fiscal quarter."
ERF Wireless CEO Dr. H. Dean Cubley stated, "In a previous press release on April 23, 2014, ERF Wireless announced a number of significant tasks that the company intended to complete in 2014 to grow the company and restore stockholder value. The announcement of the asset sale in this press release addresses the completion of one of these tasks as a necessary step toward a successful completion of our 2014 business objectives." The specific key objectives planned for 2014 that we are currently addressing and feel will be extremely beneficial to our shareholders include those noted below:
- Paying down and eliminating company debt to clean up the balance sheet to reduce interest and other capital costs.
- Continuation of our ongoing program to eliminate unnecessary cost and to improve operational efficiencies.
- Evaluation of the possible sale of certain of our wireless networks that are non-core to our oil and gas business for additional improvement of our balance sheet and for expansion of our oil and gas business.
- Possible mergers and/or acquisitions with other innovative technology companies to increase ERF Wireless revenues and cash flow.
- Attempt to complete the requirements for and obtain an up-listing to one of the national markets to improve stockholder value.
- Execute operations in all business segments with a plan to achieve cash flow positive and profitable operations in the year 2014.
About ERF Wireless Inc.
ERF Wireless Inc. (OTCQB: ERFB) is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Wireless Bundled Services, ERF Wireless Messaging Services and ERF Network Operations. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at http://www.erfwireless.com/ and http://www.energybroadband.com/ or call 281-538-2101. For information about the Oil and Gas communications services of Energy Broadband call 1-(888) 770-7052. (ERFBG)
The information in this release may contain forward-looking statements relating to anticipated or expected events, activities, trends or results. Forward-looking statements can be identified by the use of forward looking terminology such as "believes," "suggests," "expects," "may," "goal," "estimates," "should," "likelihood," "plans," "targets," "intends," "could," or "anticipates," or the negatives thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release include, without limitation, the Company's expectations of continued expansion into oil and gas markets and of our terrestrial broadband networks, along with other performance results. These statements are made to provide the public with management's current assessment of our business, and it should not be assumed that that the forward looking statements will prove to be correct. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release are only as of the date hereof, and we expressly disclaim any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in management's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Please carefully review our filings with the Securities and Exchange Commission as we have identified many risk factors that impact our business plan.
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