November 24, 2005
Radiant Communications Announces Special Shareholders Meeting Corporation proposes a 6 for 1 share consolidation and reduction in stated capital
November 24, 2005 (Vancouver, BC) – Radiant Communications Corp. (“Corporation”) (TSX Venture Exchange: RCX), Canada’s leading supplier of Internet-based data communications and Internet services to the business market, today announced a Special Meeting of the shareholders of the Corporation (“Shareholders”), currently scheduled for December 22, 2005. The purpose of the meeting is to seek the consent of the Shareholders to approve the consolidation (“Consolidation”) of the common shares of the Corporation on the basis of one (1) new common share for each six (6) common shares outstanding immediately prior to giving effect to the Consolidation. Shareholders will also be asked to vote on a resolution to reduce the stated capital of the Corporation by $33,000,000 (resulting in a corresponding reduction in the accumulated deficit of the Corporation). Further details of the Consolidation and reduction in stated capital are contained in a Management Information Circular of the Corporation dated November 22, 2005, which is being mailed to Shareholders.
The Corporation concluded a significant financing on September 27, 2005, primarily from existing shareholders, that provided new cash for growth and eliminated previously issued debentures. Shareholders are now being asked to complete the capital realignment of the Corporation through the resolutions to be voted on at the Special Meeting. The Consolidation and reduction in stated capital are being proposed in order to increase the Corporation’s flexibility and competitiveness in the marketplace and to position the Corporation’s securities to be more attractive to a wider audience of both institutional and retail investors.
Currently, the Corporation has 58,953,949 common shares and no preferred shares issued and outstanding. Upon completion of the proposed Consolidation, the number of issued and outstanding common shares of the Corporation will decrease to 9,825,628.
Implementation of the Consolidation and the reduction in stated capital are both subject to the approval of Shareholders by special resolutions at the Special Meeting and the approval of the TSX Venture Exchange.
About Radiant Communications
Radiant Communications Corp. (www.radiant.net) provides a total, integrated solution for businesses requiring national IP data communications services including, broadband and managed network services, Internet access, web hosting, web development and marketing services.
The Company offers a complete range of coast-to-coast broadband services including DSL, T1, Fibre, and Cable. Radiant also provides specialized IP services for the Canadian retail industry, namely, RetailCONNECTä IP network services and TurboSwitch IP payment gateway services. Radiant has offices in Toronto, Montreal, Calgary, Edmonton and Vancouver.
For More Information Investors:
Investors & Media: Chuck Leighton, CFO, 604-692-4531, cleighton@radiant.net
This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
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