Shares of Clearwire (NASDAQ:CLWR) were up more than 1 percent after the operator indicated board member Ben Wolff is also serving as a strategic adviser. That revelation increases the possibility that the WiMAX operator may raise more funds in the near future.
In a document filed with the U.S. Securities and Exchange Commission, Clearwire indicated that Wolff has been hired as an adviser, and would receive a fee if Clearwire executes any transactions that he served as an adviser for. Wolff replaced Craig McCaw as a Clearwire director on Jan. 6.
Clearwire has already executed various debt offerings but still needs more capital to continue rolling out big markets and keep up with Verizon Wireless' aggressive rollout schedule. It has been considering the sale of some of its vast spectrum holdings and is looking for equity financing.
Wolff's advisory role is seen as a sign that Clearwire has new funding on the horizon, Mizuho Securities analyst Michael Nelson told Reuters. "I think Wolff took the assignment thinking he had a high likelihood of making the deal," Nelson said.
For more:
- see this Reuters article
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