Ramtelecom Inc.

Ramtelecom Inc.

March 08, 2007 18:11 ET

Ramtelecom Inc. Announces Proposed Private Placement

OTTAWA, ONTARIO--(CCNMatthews - March 8, 2007) - Ramtelecom Inc. (the "Corporation") (TSX VENTURE:RTC) announces that it proposes to issue by way of a non-brokered private placement (the "Private Placement"), subject to regulatory approval, up to 2,444,444 common shares of the Corporation ("Common Shares") at a price of $0.45 per Common Share.

A finder's fee will be paid by cash equal to 7% of the gross proceeds received under the Private Placement.

The Corporation proposes to utilize the net proceeds from the Private Placement to purchase a new hub located in the United States, to upgrade its Canadian network, and for general working capital.

On February 21, 2007, the Corporation announced that it has entered into a letter of intent with SkyPort Global Communications (Canada) Inc. ("SkyPort") whereby the parties agreed to formalize and execute a definitive agreement pursuant to which SkyPort will acquire all of the issued and outstanding common shares of the Corporation at a price of $0.60 per common share, with an anticipated closing date of June 30, 2007. The form of the proposed transaction has not been finalized and is subject to a number of conditions precedent. Reference is made to the full text of the press release. The letter of intent contemplates that the Corporation may raise equity funds by way of a private placement of common shares on terms it may deem reasonable for its own business considerations, and the net proceeds of the Private Placement fit within the parameters set forth in the letter of intent.

About Ramtelecom Inc.

The Corporation is a satellite service provider delivering flexible, scalable solutions for broadband data and voice business communications. The Corporation's fixed and mobile satellite-based communication services and value-add solutions are designed for medium and large enterprises in oil and gas, mining and forestry and government agencies. With complete coverage of the North American market, the Corporation's satellite broadband services help organizations achieve greater operational efficiency by providing continuous real-time communications between central offices and remote locations anywhere in North America.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ramtelecom Inc.
    R. A. (Ralph) Misener
    President and Chief Executive Officer
    (613) 747-1836 Ext. 124
    Email: rmisener@ramtelecom.ca
    Ramtelecom Inc.
    Bob Ardiel
    Chief Financial Officer
    (403) 850-8897
    Email: bardiel@ramtelecom.ca