Wireless satellite coverage provider SatMax Corp. has announced that it has developed a financing plan for 2010 that restructures and eliminates approximately US$800,000 in debt that the company has acquired since its inception.
In a statement the…
Wireless satellite coverage provider SatMax Corp. has announced that it has developed a financing plan for 2010 that restructures and eliminates approximately US$800,000 in debt that the company has acquired since its inception.
In a statement the company said: “The successful conclusion of this restructuring would significantly improve the company’s balance sheet and should enable the company to strike more favourable terms with vendors and suppliers.”
The move is part of SatMax’s strategy to focus its business on supplying the US defence and governmental sectors both directly and through reseller agreements. At the end of December 2009, SatMax signed a new reseller deal with TLC Engineering, which will see the latter sell SatMax equipment to Federal agencies and emergency response teams in the Houston/Gulf Coast region.
SatMax’s core technology is a satellite communications solution that enables multiple callers to use Iridium-based satellite phones in non-line-of-sight locations, such as indoors. The business was originally part of Eagle Broadband but was sold to IP security convergence solutions provider Security Financing Services for US$100,000 (plus a three-year earn-out provision) in September 2007. Its new parent subsequently changed its name to Echo Satellite Communications in February 2008 but this was then changed back to SatMax in May 2009 following a request from EchoStar. Since then the parent has been restructuring the business including carrying out a 1-for-20 reverse stock split in May 2009.
