NXHZ | NexHorizon Communications Enters Into Letter Of Intent With Phoenix Communications

OTCBB Penny Stock News

Jul 28, 2008 9:45:00 AM
Copyright Business Wire 2008

NexHorizon Communications, Inc. (OTCBB:NXHZ) today announced it has entered into a Letter Of Intent to acquire Phoenix Communications Inc. (dba Pine River Cable) headquartered in McBain, Michigan. Pine River provides cable television and wireless Internet services to more than 2,500 customers located in and around McBain, Michigan. Upon completion of the transaction, NexHorizon will immediately begin upgrading the infrastructure to its digital platform and reduce the number of distribution sites to gain better operating efficiencies. Subsequent to completing the conversion from analog to digital, the Company will begin rolling out its new broadband service offerings of digital video, High-speed Internet and digital voice solutions (VoIP).

"Phoenix Communications fits the NexHorizon model as an opportunity to expand our footprint for broadband service offerings and provides an excellent resource of local management that will compliment the NexHorizon business model and growth strategies into new rural communities," said Calvin D. Smiley, Sr., NexHorizon Communications CEO. "We are looking forward to working with Phoenix to complete the due diligence process and finalize our plans to meet growing demands for broadband services in McBain, Michigan."

John Metzler, Pine River Cable's President said, "We are eager to work with the NexHorizon team. The ability to offer broadband services, in addition to our existing services, will allow us to grow our customer base. Furthermore, being a part of a national company will allow us to aggressively pursue more rural cable franchises in our surrounding areas."

It is anticipated the transaction will close during the fourth quarter of 2008 pending completion of audits and due diligence.