ICOA, Inc. (OTC BB: ICOA), a national provider of wireless broadband Internet networks and managed services in high-traffic public locations, today announced that it has reached a restructuring agreement with major debt holder Cornell Capital Partners, LP.
Under the terms of the Redemption Agreement with Cornell Capital Partners, LP, ICOA agrees to pay $1.5 million dollars to Cornell on or before June 2, 2006, to retire certain amounts owed to Cornell under three previously issued Convertible Debentures, and to issue to Cornell an unsecured amended convertible debenture in the approximate amount of $935,000, with a fixed conversion price of $0.03 per share. In addition, the warrants previously issued by the Company to Cornell will be amended so that the Company can force the exercise of the warrants under certain circumstances.
"This agreement allows ICOA to restructure its debt and replace the existing convertible debentures with Cornell Capital Partners based upon pre-identified terms and conditions. Management believes that shareholder value will be best served by replacing ICOA's existing floorless-convertible debt instruments with long-term debt or equity," said ICOA CFO Stephen Cummings. "We are in the process of identifying funding sources with interests more aligned with our shareholders, and expect to have the funding in place to complete this transaction on June 2."
"We view this agreement as a major step towards enhancing ICOA's intrinsic value and establishing a foundation upon which to build shareholder value," said ICOA CEO, Rick Schiffmann. "Upon the completion of this transaction, ICOA will retire the perceived overhang associated with the floorless convertible debt and be in a stronger position to negotiate with the capital markets."
About ICOA, Inc.
ICOA, Inc. is a national provider of neutral-host wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot zone infrastructure throughout airport facilities, quick-service restaurants, universities, travel plazas, marinas, hospitality and municipal/hot zone locations. ICOA owns or operates over 1,500 broadband access installations in high-traffic locations across 45 states. For additional information, visit http://www.icoacorp.com. To subscribe to ICOA's email alert system, please send an email to: news-subscribe*icoacorp.com.
The foregoing contains "forward-looking statements" which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA.
For more information regarding ICOA, contact: Erwin Vahlsing, Jr. VP Finance (401) 352-2310 email: evahlsing*icoacorp.com
SOURCE: ICOA, Inc.
mailto:evahlsing*icoacorp.com
Copyright 2006 Market Wire, All rights reserved.
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posted
took this from an IHUB post thought it way interesting
The Costs of Running a Hotspot Network: ICOA's Filing By Glenn Fleishman
Airport Wi-Fi operator ICOA released its latest securities filing, and it’s interesting reading: The pink-sheet-traded firm’s 10-KSB form shows that their revenue is way up—but they have enormous accrued debt and liability, too. The largest hotspot operators in North America are either private (cf., Wayport, Surf and Sip, Fatport) or part of larger entities that don’t break out hotspot revenue, expense, and funding (cf., SBC-aka-AT&T, T-Mobile). ICOA is thus the largest firm which provides primarily hotspot access for which I have seen actual financial filings. (Please note that this post doesn’t constitute financial or investing advice of any kind.)
The company’s fiscal 2005 revenue was up 111 percent over FY2004, from $1.2m to $2.5m, which is a significant uptick, representing the continued maturity of the airport Wi-Fi market and the partnerships they have with aggregators for resale. However, the firm reported a net loss of $9.2m, although that includes $5.3m in one-time costs and accounting charges.
Their statement shows a total of $19m in capital inflow but due to -$23.4m in accumulated deficits, the stockholders’ deficit is -$4.2m. Their current liabilities also far outweigh current assets. A statement on the viability of the firm as a going concern notes, “The Company needs to raise a minimum of $2,200,000 through public or private debt or sale of equity to continue expanding communications services, voice, facsimile, data and electronic publishing network and the service operation center, and to develop and implement additional contracts at airports, hotels and retail locations in order to continue placing terminals in high traffic locations.”
While these statements and numbers are interesting, I’d have to say that revenue and growth are the most fascinating part of this story. ICOA has grown through partnerships with 2nd and 3rd tier airports around North America that have significant enough traffic and yet small enough operations that it’s likely both the capital investment and operational costs are much lower and the margins higher than at the 1st tier airports. They’ve also purchased a number of firms in the same or related businesses, expanding their ability to leverage fixed costs across a larger footprint and array of services.
While the deficits and liabilities are large relative to current earnings, their upside on earnings with current locations is much, much higher than they’re seeing now based on passenger numbers and other factors. This note in the report shows that level of growth: “As of January 27, 2006, our airport footprint has expanded by 258% compared to the same time last year, from 7 to 25 facilities with a related 205% increase in annual passenger coverage from 20 million to over 61 million.”
There’s no way to predict the success of a firm that is leveraged so highly on execution—keeping the Wi-Fi going, keeping partnerships working, keeping technical infrastructure intact, handling billing and complaints. But these numbers at least provide some guidance for those wondering how much it costs to build Wi-Fi networks, anyway.
Posted by Glennf at April 21, 2006 12:15 PM
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WARWICK, RI, May 01, 2006 (MARKET WIRE via COMTEX News Network) --
ICOA, Inc. (OTC BB: ICOA), a national provider of wireless broadband Internet networks and managed services in high-traffic public locations, announced today that it has signed a roaming agreement with Trustive (www.corp.trustive.com), Europe's premier Aggregator.
Integration of the two company's systems is expected to be completed shortly, allowing Trustive's subscribers access to ICOA's network. Trustive has built an expansive virtual network by establishing access agreements with existing WISPs, or 'roaming partners' across 49 countries, offering end-users access to over 11,000+ hotspots.
"Our subscribers are looking for global access," said Trustive Managing Director Gavin Dresselhuis. "ICOA's footprint of high traffic airports and other hotspots significantly expands the number of North American locations in which we can offer convenient service."
"ICOA is looking forward to increased network traffic as Trustive's subscribers take advantage of their new Internet access choices," said ICOA CEO Rick Schiffmann. "We are pleased that Trustive has chosen ICOA as a service partner and plan to work closely with them to provide a great online experience for their subscribers."
About ICOA, Inc.
ICOA, Inc. is a national provider of neutral-host wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot zone infrastructure throughout airport facilities, quick-service restaurants, universities, travel plazas, marinas, hospitality and municipal/hot zone locations. ICOA owns or operates over 1,500 broadband access installations in high-traffic locations across 45 states. For additional information, visit http://www.icoacorp.com. To subscribe to ICOA's email alert system, please send an email to: news-subscribe*icoacorp.com.
About Trustive
Trustive is the largest hotspot aggregator in Europe and one of the fastest growing in the world, offering access to high-speed wireless Internet services through thousands of hotspots in some 49 countries in Europe, Asia-Pacific and the Americas. The company answers end-user demand for access to a global network of hotspots through a unified service with a single familiar user interface, unified charging and a single bill. Trustive is a privately-held company created in 2003 and is based in Amsterdam, Netherlands and Sophia Antipolis, France. For a complete hotspot list and more information visit www.corp.trustive.com.
The foregoing contains "forward-looking statements" which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA.
For more information regarding ICOA, contact: Erwin Vahlsing, Jr. VP Finance (401) 352-2310 email evahlsing*icoacorp.com
SOURCE: ICOA, Inc.
mailto:evahlsing*icoacorp.com
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