SOURCE: Rapid Link, Inc.

August 20, 2007 11:56 ET

Rapid Link Improves Working Capital Position

LOS ANGELES, CA--(Marketwire - August 20, 2007) - Rapid Link, Inc. (OTCBB: RPID), a leading provider of communication services to niche and rural markets, today announced that its CEO has converted $900,000 of Company debt into 9,000,000 shares of common stock at a net conversion price of $0.10 per share, which was above the August 17 closing market price of $0.07 per share. This conversion minimized potential dilution to the common shareholders of the company, while concurrently reducing the overall company debt.

John Jenkins, CEO of Rapid Link, Inc., commented, "I believe in this company and feel we are headed in the right direction. I had the opportunity to convert my debt into shares at one-half this price, but I believe the stock of our company is dramatically undervalued. I am thrilled with the opportunity to a take a greater equity position while protecting our existing shareholders from unwarranted dilution."

Chris Canfield, President and CFO of Rapid Link, further commented, "With John Jenkins, our CEO, converting his debt into stock at above market pricing, we have improved our working capital position significantly, while minimizing shareholder dilution. Our shareholders should be encouraged by this commitment made by Mr. Jenkins to the long-term success of Rapid Link."

About Rapid Link, Inc.:

Rapid Link is a communications company providing various forms of voice and data transport services to wholesale and retail customers around the world. Rapid Link companies provide licensed traditional long distance services in the contiguous United States, as well as other next generation communication services worldwide, including voice over internet protocol and information service products tailored for each target market. Focusing on niche markets, such as the US Military, selected geographic areas, and ethnic populations, Rapid Link and its subsidiaries strive to serve its customers' unique communications needs with a focus on cost efficiency and quality of service. Through the Company's operating headquarters in Omaha, NE, Rapid Link supports customers with facilities-based switching, in-house multi lingual customer service, proprietary scalable billing systems, and experienced communications professionals.

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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: with the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The Company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include, but are not limited to, the risk factors noted in the Company's filings with the United States Securities and Exchange Commission, such as the trading price of the Company's common stock reaching levels that would cause funding to occur; the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products, services and enhancements by competitors; the competitive nature of the markets for the Company's products and services; the Company's ability to gain market acceptance for its products and services; the Company's ability to fund its operational growth; the Company's ability to attract and retain skilled personnel; the Company's ability to diversify its revenue streams and customer concentrations; and the Company's reliance on third-party suppliers.

Contact Information

  • Contact:
    John A. Jenkins