Rapid Link Signs Definitive Agreement to Purchase Telenational Communications
May 03 2006 - 3:30PM
PR Newswire (US)
LOS ANGELES, May 3 /PRNewswire-FirstCall/ -- Rapid Link, Inc.
(OTC:RPID.OB) (BULLETIN BOARD: RPID.OB) , one of the leading
providers of Internet Phone services to niche markets like the
military, today announced signing of the definitive Stock Purchase
Agreement for the acquisition of Telenational Communications, Inc.
The closing of the Telenational transaction is contingent upon
Rapid Link's receipt of necessary financing to complete the
acquisition. The Company is working with a well-known investment
banking firm to assist it in the fundraising process and has been
in ongoing discussions with a number of potential investors. Rapid
Link remains confident that it will secure the necessary financing
on terms that are acceptable to it within the time period required
to consummate the Telenational transaction. "We are very excited to
have cleared all of the major hurdles in finalizing this
acquisition," stated John Jenkins, CEO of Rapid Link. "We can now
focus on closing the financing and combining the two entities.
Telenational has consistently been net income positive over the
past few years which will significantly improve our bottom line
going forward." "Operationally, this is an ideal fit bringing
together two competitors who both have expertise serving military
personnel. We are able to further support that strengthened
position with the availability of better products through Rapid
Link's new Sysmaster VOIP system," commented Chris Canfield,
President of Telenational. "I am very excited about the future of
our new combined Company, and I believe that we will be recognized
as one of the premier VOIP companies specializing in niche market
opportunities." "The combined Company will double the size of Rapid
Link in terms of revenue. Management believes the combined Company
will be operating profitably during our fiscal fourth quarter
ending October 2006," stated David Hess, President of Rapid Link.
"Going forward, we will be well positioned to grow and capitalize
on additional accretive acquisition opportunities; a number of
which that have already been identified and slated for additional
due diligence. Michael Prachar, V.P. of Operations for
Telenational, added, "The synergies between the two companies will
be recognized quickly by centralizing operations to our new telecom
facility located in Omaha, Nebraska. Together, we will realize a
dramatic increase in efficiency that will go right to the bottom
line." About Telenational Communications, Inc. Founded in 1988 as
Telenational Communications LP, the Company specialized as a long
distance carrier with operations in the North America and Europe.
Incorporated in 1997 as Telenational Communications, Inc. ("TNC"),
the Company has continued to operate from its global headquarters
in Omaha, Nebraska. About Rapid Link, Inc. Founded in 1997 as Dial
Thru International Corporation, Rapid Link provides value-added
Internet Phone (IP) communication services to customers, both
domestically and internationally. Rapid Link is a leading niche
market provider that has focused on the US military and other key
niche markets through its proven, high-quality Internet telephony
products, services and infrastructure for service providers,
businesses and individuals worldwide. The Company's IP service
offerings include multiple service plans that reside on Rapid
Link's state-of-the-art IP network. The Company offers PC-to-PC,
PC- to-phone, phone-to-phone calling on their unique set of IAD's
-- Internet Access Device's -- that provide a new low cost phone
service that is delivered through a broadband connection. Rapid
Link's back office provides billing, operations management,
marketing support, inventory management, accounts payable, accounts
receivable, sales force automation, commission management, trouble
ticket reporting. Customers can manage their telecommunications
services in a real-time environment through the Company's tested
back office support structure. Rapid Link's network spans more than
15 countries on five continents. For more information, visit
http://www.rapidlink.com/. Forward-Looking Statements: This press
release contains forward-looking statements, involving risks and
uncertainties. Such statements are based on management's current
expectations and are subject to certain factors, risks and
uncertainties that may cause actual results, events and performance
to differ materially from those referred to or implied by such
statements. In addition, actual future results may differ
materially from those anticipated, depending on a variety of
factors which include, but are not limited to, Rapid Link's ability
to attract investors, Rapid Link's future operating results, and
general economic conditions affecting consumer spending, including
uncertainties relating to global political conditions. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company
does not intend to update any of the forward-looking statements
after the date of this release to conform these statements to
actual results or to changes in its expectations, except as may be
required by law. Contacts: David Hess President and COO Rapid Link,
Inc. Tel.: 310-566-1701 The Ruth Group Investors: John Quirk Tel.:
646-536-7029 Media: Susan Kim Tel: 646-536-7032 DATASOURCE: Rapid
Link, Inc. CONTACT: David Hess, President and COO of Rapid Link,
Inc., +1-310-566- 1701; or Investors: John Quirk, +1-646-536-7029,
or Media: Susan Kim, +1-646- 536-7032, both of The Ruth Group Web
site: http://www.rapidlink.com/
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