For
Immediate Release: May 29, 2007
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NEWS
RELEASE
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Telkonet’s
Microwave Satellite Technologies Subsidiary Raised $9.1 Million
in Private
Placement
MST
Going Public in Reverse Merger; Will Trade on Bulletin
Board
|
Germantown,
MD, Telkonet, Inc.’s (AMEX: TKO) subsidiary, Microwave Satellite
Technology Inc., today
announced that it has closed a $9.1 million private placement.
Upon
completion of the closing, MST executed a reverse merger to become
a
publicly-traded company. Its ticker symbol on the first day of
trading on
the NASDAQ Bulletin Board will be FITX.OB.
Frank
Matarazzo, Founder of MST, explained, “We continue to build and perfect
our platform for ‘quadruple-play’ services in New York City. With 20
buildings and significant infrastructure in place, we are now
ready to
implement our business plan to expand in the New York City area,
to be
followed by other key markets around the country. As part of
that plan, we
intend to increase our business through organic growth as well
as by
acquisitions. The funds raised here will enable MST to pursue
both of
these strategies more effectively.”
Frank
Matarazzo will continue to act as CEO, while Ron Pickett will
serve as
president of the public company. Joining them on the board of
directors
are Warren
V. “Pete” Musser (current chairman of TKO), Thomas C. Lynch and Thomas
M.
Hall (both directors of TKO). Each of these individuals participated
in
the private placement as did some institutional investors. The
Company anticipates that more members from the industry may be
added to
the board in the future.
Pickett
stated, “MST has grown to the point where it makes sense for it to be
a
free-standing operation, and by going public, the value added
to MST in
the last year and a half is unlocked. For shareholders of TKO,
this is
also a good arrangement because TKO is relieved of the cost of
funding
MST’s operations. At the same time, we will continue to showcase
the
TKO/MST solution. Upon the closing, TKO will own 18.5 million
of the
roughly 30 million shares of MST outstanding. Additional dilution
can
occur when and if warrants and convertible instruments in the
transaction
are converted.”
Matarazzo
concluded, “The continued build out in New York City offers us huge
opportunities. After all, recent transactions in the New York
City cable
TV market among triple-play providers have valued subscribers
at over
$5,000 a head. This transaction will let us capitalize on these
opportunities and ensure that we grow and build shareholder value
on our
own merits.”
About
Microwave Satellite Technologies (MST)
MST
is a communications service provider offering quadruple play
(Quad-Play)
services to multi-tenant unit (MTU) and multi-dwelling unit (MDU)
residential, hospitality and commercial
(more)
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Contact:
Michael
Porter
President
Porter,
LeVay & Rose, Inc.
212.564.4700
mike@plrinvest.com
www.plrinvest.com
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