SAN FRANCISCO, Dec. 16, 2011 /PRNewswire/ -- FiberTower
Corporation (NASDAQ: FTWR), a wireless backhaul services provider,
today announced that on December 12,
2011, it received a notice from the Listing Qualifications
Department of the Nasdaq Stock Market (the "Department") notifying
FiberTower that it has failed to meet the minimum bid price
requirements for continued listing set forth in Nasdaq Marketplace
Rule 5450(a)(1) (the "Minimum Bid Price Rule"), which requires
listed companies to maintain a minimum bid price of $1.00 per share. The notice has no effect
at this time on the listing of FiberTower's common stock on the
Nasdaq Global Market, and FiberTower's common stock will continue
to trade on the Nasdaq Global Market under the symbol "FTWR."
In accordance with Marketplace Rule 5810(c)(3)(A), FiberTower
has 180 calendar days to regain compliance with the Minimum Bid
Price Rule. The Department will provide written notification
to FiberTower that it has achieved compliance with the Minimum Bid
Price Rule if, at any time before June 11, 2012, the minimum bid
price of FiberTower's common stock closes at $1.00 per share or
more for at least 10 consecutive trading days. If FiberTower does
not regain compliance with the Minimum Bid Price Rule by the
required deadline, FiberTower's common stock will be subject to
delisting from the Nasdaq Global Market.
FiberTower previously announced that it had elected not to make
the $1.3 million semi-annual interest
payment due on November 15, 2011,
with respect to its 9.00% Convertible Senior Secured Notes Due 2012
(CUSIP Nos. 31567RAA8 and 31567RAC4) (the "2012 Notes"). The
indenture governing the 2012 Notes provides that the failure to
make such payment constitutes an event of default after a 30-day
cure period, which expired on December
15, 2011. As a result of FiberTower's continuing
nonpayment of this installment of interest on the 2012 Notes, an
event of default now exists under the indenture governing the 2012
Notes. The expiration of the cure period for this installment
of interest under the 2012 Notes also constitutes an event of
default on the Company's 9.00% Senior Secured Notes Due 2016 (CUSIP
Nos. 31567RAG5 and 31567RAF7) (the "2016 Notes"). Recently,
FiberTower commenced discussions with certain holders of the 2016
Notes and continues to evaluate all options available to manage its
debt.
About FiberTower
FiberTower is a backhaul and access services provider focused
primarily on the wireless carrier market. With its extensive
spectrum footprint in 24 GHz and 39 GHz bands, carrier-class fiber
and microwave networks in 13 major markets and master service
agreements with nine U.S. wireless carriers, FiberTower is an
alternative carrier for wireless backhaul. FiberTower also
provides backhaul and access service to government and enterprise
markets. For more information, please visit our website at
www.fibertower.com.
Forward-Looking Statements
This news release includes "forward-looking'" statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995 or by the Securities and Exchange Commission, or SEC, in its
rules, regulations and releases. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. These
include statements regarding, among other things, our future
financial performance and results of operations including our
financial and business prospects, the determination of asset
impairment charges for the quarterly period ended September 30, 2011, our ability to file our third
quarter report on Form 10-Q for the period ended September 30, 2011 in a timely fashion, the
deployment of our services, capital requirements, financing
prospects, planned capital expenditures, anticipated customer
growth, expansion plans, and anticipated cash balances.
There are many risks, uncertainties and other factors that can
prevent the achievement of goals or cause results to differ
materially from those expressed or implied by these forward-looking
statements. These include, among other things, negative cash flows
and operating and net losses, additional liquidity requirements,
potential loss of significant customers, downturns in the wireless
communication industry, regulatory costs and restrictions,
potential loss of FCC licenses, equipment supply disruptions and
cost increases, competition from alternative backhaul service
providers and technologies, along with those risk factors described
in the company's Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q, as filed with the SEC.
SOURCE FiberTower Corporation