# of outstanding shares: 36,072,542
Cinema Internet to acquire 51% of Expansive Networks
2008-02-21 13:23 ET - News Release
Mr. Bill Massey reports
CINEMAWORKS TO ACQUIRE WIFI WIRELESS MESH OPERATOR
Cinema Internet Networks Inc. intends to acquire 51 per cent of Expansive Networks Corp., a provider of next-generation wireless networks for residential, business and enterprise markets, particularly in underserved rural markets in British Columbia and Alberta. In addition, Expansive has tested the WiMax 3.5-gigahertz (GHz) equipment and has an agreement for use of this frequency in approved areas of B.C.
Bill Massey, president and chief executive officer, states: "This transaction provides CinemaWorks the opportunity to develop several outstanding business opportunities promising quick payback on investment and a long-term source of recurring revenue. Furthermore, the acquisition enables CinemaWorks to enhance future service offerings over fibre networks with wireless mesh."
Mr. Massey continued: "Quite often, it is not economically sound to run fibre beyond MDUs which are multidwelling unit buildings with numerous subscribers. With Expansive, we will expand our subscriber base to include single family units and small apartment complexes surrounding the larger MDUs to which we run fibre. Quite simply, we will be able to reach more paying subscribers for every dollar invested and still provide each of them with big bandwidth provided by the fibre backbone we install in nearby MDUs."
About Expansive Networks Corp.
Expansive Networks Corp. is a three-year old Vancouver-based private company that designs, installs and operates innovative 802.11 wireless mesh networks using multiradio technology. The company specializes in providing high-speed Internet services to residential and commercial clients. Expansive currently provides Internet services to the community of Fraser Lake and Telkwa, B.C. In addition, the company has surveyed a number of other towns and expects to soon begin actively installing Internet services in these towns, based on the business model at Fraser Lake. Expansive Networks has an agreement with Vecima Networks for the use of the 3.5 Ghz licensed frequency in approved areas.