RUSHVILLE, Ind., May 12, 2009 (GLOBE NEWSWIRE) -- David Bradford, VP of Corporate Development for Omnicity Corp. (OTCBB:OMCY), the fastest growing fixed broadband service provider in the Midwest, today issued a formal corporate update summarizing the milestones achieved and the status of Omnicity's aggressive growth plan through acquisitions and organic growth.
Bradford stated, "In the first 12 weeks since completing the public listing of Omnicity we are well ahead of schedule on our short-term plan goals. In less than 100 days we have brought in significant investor funding, secured a valuable credit agreement, closed four important acquisitions, enhanced the organization's operations and management for quality growth with some critical hires, and have begun to execute on municipal fiber as well as residential wireless revenue strategies. In twelve short weeks we have tripled the subscriber and revenue base, tripled the tower asset base, more than quadrupled the size of our service area, and operating metrics are right on track. We are exceptionally pleased with these short-term results and are now poised to advance to the next phase of the plan."
Omnicity's four acquisitions to date were of Indiana-based wireless internet service providers. NDWave, ForePoints, North Central Communications, and Cue Connex were strategically important buys for Omnicity, not only tripling the subscribers and revenue, but also delivering key employees and important integral elements to the distribution system. With these acquisitions, Omnicity now serves over 6,000 subscribers; the Company's short-term strategic plan is to increase our subscriber base in the Midwestern U.S., through more acquisitions and organic growth, and quickly expanding into all Midwestern States and eventually across all of rural America. "Our model is based on a fully enriched and integrated broadband experience for all elements of the rural marketplace: individual residents, businesses, schools, and local governmental entities. We have begun to execute on all dimensions of the plan, with great acceptance," Bradford said. Over the last 12 weeks Omnicity has strengthened alliances and marketing agreements with several Indiana Rural Electric Cooperatives, formed new service partnerships with independent rural telephone companies, and has developed a comprehensive package of mobile broadband applications and meter reading applications for utilities, municipalities and local water districts. This week, Omnicity kicks off its fiber construction program with a project to build a fiber optic network for the City of Lebanon, Indiana, tying Lebanon Utilities to Lebanon Community Schools.
Omnicity has also achieved success raising money in support of its aggressive development schedule. Omnicity has entered into a $1 million credit facility with Agility Ventures to fund capital expenditures for network and subscriber growth and has raised additional funds through an equity private placement. These funds were added to our working capital. Bradford concluded by stating, "Although we are on a very ambitious growth plan, our model is quite prudent financially. Each acquisition brings significant incremental cash flow to the bottom line, new subscriber installs are reaching break even more quickly than expected, and we intend to further fund up, build upon these early successes, and accelerate the plan."
About Omnicity:
Our vision is to be the first broadband service provider to expand its network across rural America
Omnicity Corp is a public company based in Indiana providing broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is planning to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total broadband solution and continue rapid growth through acquisitions, organic growth and continue to partner with Rural Electric Membership Co-ops and Rural Telephone Companies. Omnicity has an experienced broadband operations team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of businesses through its roll-up strategy.
Forward-looking statements, made pursuant to safe harbor provisions of the PSLR Act of 1995, inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for changes after the date of this release.