SOURCE: ERF Wireless Inc.

ERF Wireless Inc.

June 22, 2011 08:00 ET

ERF Wireless to Provide Energy Broadband Stock as a Dividend to Shareholders

ERFW Shareholders of Record as of September 30, 2011, to Receive Common Stock and Warrants in Oil and Gas Subsidiary

LEAGUE CITY, TX--(Marketwire - Jun 22, 2011) - ERF Wireless (OTCBB: ERFW), a leading provider of enterprise-class wireless broadband products and services, announced today that its Board of Directors has voted for a two-step plan to enhance the ability of its wholly owned oil and gas subsidiary, Energy Broadband Inc., to secure expansion financing and eventually operate as an independent majority-owned public subsidiary.

To create the necessary shareholder base required for a public company, ERF Wireless' first step will be to dividend up to 5% of the existing common stock in Energy Broadband to the current ERF Wireless stockholders, prorated to their ownership of ERFW stock as of the September 30, 2011, record date, provided they own at least 100,000 ERF Wireless common shares or preferred stock convertible into 100,000 common shares. For each 100,000 shares of ERF common stock that they own as of the record date the shareholders will receive one unit of Energy Broadband securities consisting of 100 Energy Broadband common shares, one warrant to purchase 100 shares at a fixed price of $4.00 per share and one warrant to purchase an additional 100 shares at a fixed price of $6.00 per share. No unit fractional shares or certificates or warrants for less than one hundred shares will be issued. The logistical details of the new Energy Broadband common stock share and warrant issuance will be provided in additional press releases before the record date.

Secondly, ERF Wireless will aggressively pursue the availability of near-term private expansion financing dedicated exclusively to the Energy Broadband business plan with the intention of taking Energy Broadband public. Of course the exact timing of that objective is highly dependent on many factors that are beyond the control of ERF Wireless.

According to ERF Wireless CEO Dr. H. Dean Cubley, "When we originally structured an Oil & Gas Division, our objective was to eventually have a broadband communications company focused totally on dealing with the communications needs of the energy industry. That division grew steadily in both customer count and revenue. In 2010, ERF Wireless began operating this segment of its business as a separate corporate subsidiary with its own management and resources and branded it as Energy Broadband Inc. This allowed Energy Broadband to achieve a much higher level of visibility on its own, with our oil and gas customers, as well as with the investing public."

Dr. Cubley went on to note that generally the investment community tends to prefer a business plan that focuses on one industry rather than the more diversified approach ERF Wireless has employed in the past.

"By configuring Energy Broadband as a company with its own publicly traded stock, ERF Wireless will allow current shareholders and investors a dual way to participate in our Energy Broadband business," said Dr. Cubley. "ERF Wireless shareholders will still have ownership in ERF Wireless and thus Energy Broadband through their current ERF Wireless holdings. However, those who participate in this dividend will also have new ownership directly in Energy Broadband."

Dr. Cubley concluded by predicting, "The option to take Energy Broadband public on its own should add an additional element of interest and opportunity for the investment community, in general, as well as for all existing ERF Wireless shareholders."

For more information regarding the products and services of Energy Broadband including their capabilities in the oil and gas industry please visit the new Energy Broadband website at www.energybroadband.com. This website includes the new coverage in the Eagle Ford Shale region, as well as new coverage planned in other oil and gas regions in North America. Potential customers requiring more detailed information or a quotation for product or services should contact the Energy Broadband sales staff at 888-770-7052.

About ERF Wireless

ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband, Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at http://www.erfwireless.com/ and http://www.erfwireless.net/ or call 281-538-2101. (ERFWG)

Forward-looking statements in this release regarding ERF Wireless Inc. are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    ERF Wireless Inc.
    Clareen O'Quinn
    281-538-2101 ext. 113
    Email Contact