Rapid Link Completes Acquisition of Telenational Communications
May 08 2006 - 8:00AM
PR Newswire (US)
LOS ANGELES, May 8 /PRNewswire-FirstCall/ -- Rapid Link, Inc. (OTC
Bulletin Board: RPID), one of the leading providers of Internet
Phone services to niche markets like the military, today announced
that it has closed the previously announced acquisition of
Telenational Communications, Inc. Rapid Link has financed this
acquisition through the issuance of a Promissory Note in the
aggregate principal amount of $1,000,000 paid to Apex Acquisitions,
Inc., in its capacity as the sole stockholder of Telenational
Communications, Inc. The Company notes that the use of the
Promissory Note to provide near-term financing of the acquisition
will expedite the closing and therefore the integration of the two
companies. This allows Rapid Link to begin executing on its growth
strategy for the remainder of 2006. Under the terms of the
Promissory Note, the Note shall be due the earlier of 18 months or
upon Rapid Link's closing of an equity or debt financing with gross
proceeds equal to or greater than $2 million. The Note accrues
interest at an agreed upon rate of 8% and is collateralized by the
stock of Telenational. Rapid Link's strategy will be achieved
through both organic growth and by extending and complementing the
Company's niche market target through selective acquisitions. As
previously announced, Rapid Link has identified Telenational as a
highly successful and an ideal partner with a highly complementary
business. The potential synergies that may contribute to Rapid
Link's growth efforts moving forward include the following: -
Immediately accretive to Rapid Link's earnings - Acquisition should
more than double Rapid Link's current revenue run rate -
Complementary technologies in synergistic niche retail focus and
brand - Operating and cost efficiencies deriving from the
consolidation of back office foundations - Highly complementary and
experienced management team "We are very pleased to complete the
acquisition of Telenational using a flexible financing strategy
that allows us time to achieve the optimal financing package in the
marketplace which best serves the interest's of our share holders,"
said John Jenkins, CEO of Rapid Link. "Both Rapid Link and
Telenational have a long tradition of focusing very carefully on
user needs. We share a similar customer base and a strong
commitment toward standards. With this new relationship, the
Company is at a point where the business vision can best be
realized and customer needs met most effectively by merging. Going
forward, this will improve our bottom line and create the critical
mass necessary to take Rapid Link to the next stage in its growth
strategy." 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/
Copyright