CCI Signs Letter of Intent (LOI) to Purchase Argon Technologies, Inc. Valued at Over $2M
SAN ANTONIO , June 4, 2011 /PRNewswire/ — Competitive Companies Inc. (CCI) (OTCBB: CCOP) announced today that it is entering into a Letter of Intent to purchase the assets of Argon Technologies, Inc. The purchase includes wireless Internet equipment valued at over $2M, commercial property valued at over $500K and broadband subscribers generating more than $900K in profitable annual sales. The growth potential for Argon is enormous as they currently cover more than 257,000 homes with their current wireless network. William Gray, CEO for CCI describes the purchase as one of the most significant events in the Company’s history.
We are very excited to have the opportunity to include Argon in our portfolio of business development and “enterprise value model,” says Mr. Gray. The Company will utilize an LBO type purchase strategy to including an “earned buyout”, commercial loan, CCI Stock and cash derived from its Convertible Preferred Loan Program. CCI has been developing a unique acquisition strategy for more than a year and has now completed the initial infrastructure to begin moving aggressively towards its 36 month business plan in acquiring more than $100M in annual revenues represented by subscribers aggregated with multiple Wireless Internet Service Providers (WISP) throughout North America.
About Argon Technologies, Inc.
Argon Technologies was founded in 1987 by Marco Coelho to provide broadband wireless access to rural communities in Northeast Texas without a choice of broadband Internet services other than Cable and DSL. Argon now offers wireless broadband access to more than 257,000 homes in 102 rural communities. The Company has done very little advertising outside of “word of mouth” and has grown to more than 1,500 wireless broadband subscribers generating more than $900K in annual sales. The Company has been able to keep cost down and produce a very high EBITA profit near $300K annually. “Argon’s present position is enviable because it believes that, without spending another dollar on infrastructure, capital equipment, employees, or bandwidth, the Company can more than double its current customer base and more than triple current profits,” says Mr. Coelho, President of Argon.
About Competitive Companies, Inc.
Competitive Companies, Inc. (CCI) is a Nevada Corporation with offices in San Antonio, Texas, Eau Clair, Wisconsin and Scottsdale, Arizona. The Company began operations in 1998 to provide telecommunication services including data, voice and video to multiple dwelling units (MDU’s) in tier-one markets. As Congress passed “open access” legislation, larger capitalized organizations made it difficult for the Company to compete in that market. Thus, CCI has refocused its business model to delivering wireless broadband Internet to rural communities nationwide in a plan to build a network of profitable but “undervalued” WISP operations thus substantially increasing its enterprise value. Management believes this is the “right” time to participant aggressively in the acquisition of small WISP operations unable to expand due to limited financial resources available for small private companies. The Company plans to acquire approximately 50 to 60 WISP operations over the next 36 months accumulating to more than $100M in annual revenues while maintaining profitability. CCI has assembled a strong management team with extensive communications industry, financial, and business management experience. To obtain more information on the Company, please visit http://www.cci-us.com/.
This press release contains statements that are “forward-looking” and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words “expect,” “intend,” “estimate,” “will” and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company’s business or proposed business, which are not historical facts, are “forward-looking” statements that involve risks and uncertainties, such as estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
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SOURCE Competitive Companies Inc.