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WirelessDevNet.com Press Release
Wireless Age Finalizes Settlement Agreement
Wireless Age Communications, Inc. ("Wireless Age") (PINK SHEETS: WLSA) announced that the Company has completed the Settlement Agreement (the "Settlement Agreement") with the receiver and trustee in bankruptcy (the "Trustee") of its former subsidiaries, Wireless Age Communications Ltd. ("Wireless Communications") and Wireless Source Distribution Ltd. ("Wireless Source").
On January 9, 2009, the date the Wireless Age subsidiaries were placed into receivership, Wireless Communications and Wireless Source had provided unsecured loans to Wireless Age, their direct parent company totaling CAD$8.3 million. Also as of January 9, 2009, Wireless Age had provided a secured loan to Newlook totaling CAD$6.2 million. The Company has recorded a special loss provision to the full extent of the loans provided by the subsidiaries to Wireless Age. Wireless Age entered into the Settlement Agreement with the Trustee on October 2, 2009, pursuant to which Wireless Age agreed to pay Wireless Communications and Wireless Source a total of $750,000 to settle the outstanding debts.
The Settlement Agreement has now been completed and third quarter results, due to be released in November, will reflect the gain of over $5 million associated with the final settlement of the intercompany loan between Wireless Age and Newlook.
John G. Simmonds, CEO of Wireless Age stated; "I'm extremely pleased with the finalization of this agreement. It allows the Company to move forward with its current business model and pursue exciting new opportunities."
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