XFONE, Inc. Signs Definitive Agreement to Sell Israeli Subsidiary
May 17, 2010
Lubbock, TX – May 17, 2010 – XFONE, Inc. (NYSE Amex and TASE: XFN) (“XFONE” or “the Company”) announces that it has signed a definitive agreement to sell its Israel-based subsidiary, Xfone 018 Ltd. to Marathon Telecom Ltd.
The aggregate purchase price to be paid by Marathon Telecom is approximately $7,850,000, which represents a price for 100% of the interests in Xfone 018 free of any financial debt. The financial debt of Xfone 018, excluding debt due to the Company, is approximately $1,100,000. In connection with this transaction, the Company will be repaid its debt, and will receive 69% of the net proceeds after all other financial debt of Xfone 018 has been paid.
Guy Nissenson, CEO of Xfone, commented, “The divestiture of our Israeli business is another significant step in our business transformation that focuses on providing high speed voice, cable and high speed internet primarily in secondary U.S. markets. This transaction, when completed, coupled with our pending sale of our UK operations, will strengthen our balance sheet and provide additional capital for the roll out of our fiber-to-the-premise service in Texas.”
The definitive agreement is pursuant to the previously disclosed non-binding memorandum of understanding entered into on March 2, 2010.
The closing of this transaction is subject to certain conditions and approvals, including receipt of the approval of the Minister of Communications in Israel. The Board of Directors of Xfone approved the Agreement on May 13, 2010. Additional information on the divestiture is available in the Company's current report on Form 8-K that was filed with the Securities and Exchange Commission on May 14, 2010.
Click here to view the Form 8-K at SEC.GOV
Click here to view the Form 8-K/A at SEC.GOV
About XFONE, Inc.
A U.S.-domiciled corporation, XFONE, Inc. is an international voice, video and data communications services provider with operations in the United Kingdom, the United States and Israel that offers a wide range of services, which include: local, long distance and international telephony services; prepaid and postpaid calling cards; cellular services; Internet services; messaging services (Email/Fax Broadcast, Email2Fax and Cyber-Number); and reselling opportunities. The Company serves customers worldwide. For the Company’s website, please visit: www.xfone.com
This press release contains forward-looking statements. The words or phrases "should," "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." The Company's financial results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this press release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
| For More Information,
Please Contact: |
| U.S. IR Contact |
Company Contact |
John Nesbett/Jennifer Belodeau
Institutional Marketing Services (IMS)
Tel: 1.203.972.9200
E-mail: jnesbett@institutionalms.com
|
Niv Krikov, CFO
Tel: 1.806.771.1181
E-mail: niv@xfone.com |
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