| Choicetel Communications, Inc. | |||
| Ticker: | PHON | 9724 10th Avenue North | |
| Exchange: | NASDAQ-Small Cap Market | Plymouth, MN 55441 | |
| Industry: | Service (SIC Code 4813) | (612) 544-1260 | |
| Type of Shares: | Common Shares | Filing Date: | 6/25/97 | |
| U.S. Shares: | 800,000 | Offer Date: | 11/10/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $7.50 | |
| Primary Shares: | 800,000 | Offer Price: | $7.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.63 | |
| Offering Amount: | $6,000,000 | Selling: | $0.38 | |
| Expenses: | $400,000 | Reallowance: | $0.10 | |
| Shares Out After: | 2,728,766 |
| Manager | Tier | Phone |
| Equity Securities Trading Co, Inc. | Lead Manager | (612) 338-8901 |
| Issuer's Law Firm: | Robins, Kaplan, Miller & Ciresi |
| Bank's Law Firm: | Winthrop & Weinstine |
| Auditor: | Schechter Dokken Kanter Andrews & Selcer |
| Registrar/Transfer Agent: | Norwest Bank of Minnesota |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $3.56 | $1.73 | $0.78 | Assets: | $8.85 |
| Net Income: | -$0.39 | $0.11 | -$0.01 | Curr Assets: | |
| EPS: | -$0.20 | $0.06 | -$0.01 | Liabilities: | $7.30 |
| Prior EPS: | $0.04 | $0.01 | $0.02 | Curr Liabilities: | |
| Cash Flow/Oper: | $0.60 | Equity: | $1.55 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is the largest independent payphone service provider in Minnesota. The company installed its first payphones in 1990 and presently has uninstalled base of approximately 3,000 payphones in 10 states. Management believes that it has developed the skills and systems to operate the company on a larger scale and intends to grow through internal expansion and acquisitions. The company believes the outlook for the pay telephone industry is favorable because of recent legislation that has led to deregulation of the rates for local pay telephone calls and a significant increase in the amount of compensation for certain types of calls which previously produced little revenue for payphone service providers. The company anticipates that the rates for local pay telephone calls will increase as a result of deregulation. The company also believes that the continued expansion in telecommunication services, including the rise in call waiting, voice mail and pager usage, will result in increased calling volume, thus increasing the revenue generated by payphones. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to retire debt, to finance acquisitions and expansion, and for working capital and for general corporate purposes. |
| # of Units: | 800,000 | |||
| Unit Ticker: | - | Unit Price: | $7.50 | |
| Warrant Ticker: | PHONW | Warrant Price: | ||
| Warrant Exercise Date: | Warrant Exercise Price: | $9.50 | ||
| Warrant Expiration Date: | ||||
| Warrant Detachable: | Yes | Warrant Detach Date: | ||
| Warrant Callable: | No |
| Unit Composition: 1 Common Share + 1 Warrant |
| Warrant Entitlement: 1 Common Share |