Tower One (CSE: TO OTC: TOWTF), one of the more unique microcaps out there leveraging data and cellular growth, has strengthened the business foundation recently, announcing a $5 million dollar line of credit that will be used to build and purchase around 100 new towers. They will pay off interest on the line of credit with lease payments generated from the towers, creating a less dilutive situation for shareholders while growing the company’s cash-generating portfolio. TO has made some big strategic moves in Colombia and Argentina lately, and if you are unfamiliar with Tower One, check out this 30 second video overview:
Tower One acquired a 90% interest in an established telecom services and site acquisition company that successfully completed the lease or purchase of 300 sites since startup in 2005.
Site acquisition is an important step for build-to-suit cellular towers. Tower One is able to expand its business to physical real estate that will be subject to long-term leases. The real estate model commands high yields relative to the acquisition cost. Always great to have another revenue stream coming into the company’s pocket book.
Tower One was also awarded an additional six search rings from a mobile network operator.
They are now awaiting the completion of the Colombian 700-megahertz and 1,900-megahertz spectrum auction as it pertains to every mobile network operator’s tower rollout for the balance of 2017 to 2020.
Alex Ochoa, CEO of Tower One, stated: “We expect the results of this auction to be imminent and Colombia’s network growth to accelerate once the auction is complete. Meanwhile, the company continues to make significant strides in the now very active Argentine tower market.”
This team was on the ball years back, and has a jump in these key Latin American markets.
Tower One entered into a share purchase agreement to acquire 65 per cent of the issued and outstanding shares of a private tower company which owns, builds and leases cellular towers to the telecom industry in Argentina. The company has a master lease agreement (MLA) with a single mobile network operator. The master lease agreement allows for the tower company to be granted cellular search rings, which are desired co-ordinates for a tower, and outlines the terms for each tower build.
The acquired company was established only in 2016 and has completed two towers with two more currently being built. They are awaiting delivery of six towers from its fabricator vendor once site acquisition is completed. Additionally, the unnamed company currently has an additional 20 cellular search rings that have begun site acquisition.
Mr Ochoa commented: “Tower One has now solidified our position as a tower operator in Argentina and is advancing discussions with additional mobile network operators. Our new tower company is one of five firms with an MLA in Argentina. This country is currently estimated to need over 10,000 new cellular towers in the next few years to meet the Ministry of Communication’s national plan for quality communication services.”
Tower One has DTC eligibility for its shares traded in the United States (Symbol OTC: TOWTF). “Tower One Wireless is listing its shares on the OTCQB as a first step toward establishing the company within the American investment community. The DTC’s electronic settlement of our shares is critical to having an effective market. Our goal is to graduate to a more senior exchange in the future, and expand our business endeavours globally.”- Robert Horsley, Director of Tower One
About Tower One
Tower One builds, owns and leases a portfolio of wireless infrastructure assets to wireless carriers on long-term contracts. Tower One is the only publicly traded small-cap entry in the tower and wireless infrastructure industry. Tower One Wireless is currently focused on 4G and 5G LTE (long-term evolution) infrastructure expansion in Latin America.
They have 52 million shares outstanding and a market cap of only $13 million.
This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.
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Tower One Wireless is not a client nor an advertiser. One or more of the Stock Syndicate owners does own shares in Tower One Wireless.