RANCHO MIRAGE, CA, Nov. 3, 2015 /CNW/ - Craig Wireless Systems Ltd. (the "Company") (TSX-V: CWG) announced today that it has received a demand for payment by its secured creditors, being T. Boyd Craig, J. Drew Craig and S. Miles Craig (together, the "Creditors"), who together hold outstanding loans in the aggregate principal amount of US$8,930,576.69, plus certain fees and expenses. The Creditors have noted in the demand letter that if such amount is not paid immediately, they shall take whatever steps they consider necessary or appropriate to collect and recover the amounts owing to them.
The Company does not currently have sufficient cash on hand to make payment in full in respect of the demand, and does not expect to be able to raise sufficient capital in the short term to make payment in full.
Each of the Creditors is a control person of the Company and has beneficial ownership of, or control over, directly or indirectly, more than 10% of the issued and outstanding subordinate voting shares and multiple voting shares of the Company. Additionally, T. Boyd Craig is a director and senior officer of the Company.
The Company also announces that customers of Craig 4G in the Coachella Valley, California have been provided with notice that the Company is in the process of shutting down service in that region and that Gary Birkland has resigned as an officer of the Company.
About Craig Wireless Systems Ltd.
Craig Wireless and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband internet access, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.3 GHz, 2.5 GHz, 2.6 GHz or 3.5 GHz bands in New Zealand, Riverside County in Southern California, United States and in Greece. The CWS Group also has spectrum interests in Norway. Spectrum in these ranges is effective for delivery of point-to multipoint signals, possesses robust bandwidth capability and supports emerging 4G-based applications, including portable and mobile applications.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Craig Wireless Systems Ltd.
