Towerstream has announced plans to raise $40 million from a common stock offering, which is expected to close on Monday. The company plans on selling 10 million shares for $4 each. Towerstream went public by merging with University Girls Calendar in January, just before competitor Clearwire carried out its IPO. By listing over-the-counter after its merger and thanks to a private placement of stock, some estimate Towerstream raised $14 million. The expected $4 million infusion will go toward building out the company's target markets, which so far have focused on business customers.
"The proceeds from this offering will provide us with the capital to build out our target markets and solidify our position as a WiMAX leader," said Jeff Thompson, President and CEO of Towerstream. The company has built "pre-WiMAX" networks in markets such as New York City, Los Angeles, Chicago, San Francisco, Seattle, Miami, the greater Boston area, and Providence and Newport, RI.
For more on Towerstream's stock offering:
- see this press release