ESTW Eastower Wireless Inc

BOCA RATON, Fla., May 30, 2022 /CNW/ - EasTower Wireless Inc. ("EasTower" or the "Company") (TSXV: ESTW), formerly OV2 Investment 1 Inc. (TSXV: OVO.P), a US-based provider of next generation wireless communications infrastructure specializing in the construction, installation, and maintenance of 5G and 4G wireless telecommunication networks, reported financial results and operating highlights today for the three months ended March 31, 2022.

The Company's condensed consolidated financial statements for the three-month periods ended March 31, 2022, is available on the Company's website at https://www.eastower.com and under the Company's profile on SEDAR at www.sedar.com. Unless otherwise specified, all amounts are in U.S. dollars ($).

"Despite the macroeconomic turmoil and uncertainties in the market today, the rapid development and installation of 5G infrastructure backed by government funded initiatives continue to be full steam ahead," said Vlado P. Hreljanovic, CEO of EasTower. "We continue to be direct beneficiaries of the new and exciting 5G build-out across America with access to an abundance of contracts and purchase orders from major telecoms, OEMs and turf vendors. Considering 5G will play an integral part of the country's long-term infrastructure plans, 5G is poised for rapid grow through both telco and government necessity.  EasTower continues to capitalize on the backlog of work backlog due to the high demand for skilled 5G services."

Mr. Hreljanovic added, "Companies and the big switch to remote workers continue to grow here in the U.S. as the pandemic shifted people's perception of living in high cost metropolitan cities. We are excited to be part of this growing market and our contribution to provide long-term 5G solutions in order to meet the infrastructure demands in Southeastern United States. Our public listing debut occurred on March 29 in Q1 of this year and was a significant and very important milestone to our long-term growth plan. With gaining access to the capital markets, and additional capital as a result of our public listing, we began investing into our growth and we are even more excited to report our progress in upcoming quarters."

• Total Revenue was increased by 11% to $425K in Q1 2022 compared to $383K in Q1 2021
  
  
• Cost of Sales was $206K in Q1 2022 compared to $175K in Q1 2021
  
  
• Gross Profit was $219K in Q1 2022 compared to $208K in Q1 2021
  
  
•  Total comprehensive loss for Q1 2022 was $(2.23) million compared to comprehensive income of $188K in Q1 2021. The loss in Q1 was mainly attributed to the one-time going public costs to the company, including associated high legal and accounting costs realized in order to be listed on the TSXV, which was estimated to be ~$1.6 million.
  
  
• As at March 31, 2022, the Company had cash and cash equivalents of $1.10 million, compared to $0.10 million as of December 31, 2021.

_Sources

_{https://financialpost.com/fp-finance/ci-financial-joins-finance-migration-trend-with-miami-office
https://sharoncolonre.com/massive-tech-and-crypto-companies-moving-to-miami/
https://ceo-na.com/business/management-leadership/why-tech-billionaires-are-leaving-california-for-texas-and-florida/}

The Company, through its wholly owned subsidiary, EasTower Communications Inc., is a U.S. provider of wireless infrastructure network build-out and related service within America. The Company specializes in the construction, installation, upgrading, and maintenance of next generation wireless infrastructure networks, including rapidly growing 5G, current 4G and small cell deployments as well as the least know and largest infrastructure plays in US history, the first responder or FirstNet initiative. The Company's diverse, top-tier customer base includes major telecom providers, global original equipment manufacturers (OEMs), corporations and federal government agencies. The Company is currently operating in the State of Florida

For more information, please visit www.eastowerwireless.com.

Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including business retention, and strategic plans and to attract, develop and retain key executives; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed or referred to in the Company's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE EasTower Wireless Inc.