Flint Telecom Group Inc. (FLTT) prospers on announcing prospective buy

Posted on: Monday, June 13th, 2011
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Flint Telecom Group Inc. (OTCBB: FLTT) enjoyed a stock jump of 84.2% Monday to 35-100ths of cent, on word the company was taking on a third telecom service provider. Volume for the stock was nearly 34 million shares, compared to a daily average of 526,603.

Flint, based out of Overland Park, Kansas, announced Monday it had completed a Letter of Intent to acquire the assets of a telecom company providing services to small and medium enterprises and other groups in the United States. Under the terms of the non-binding letter of intent, Flint Telecom will acquire all of the customers, equipment, contracts and operating licenses on completion of definitive agreements and required regulatory filings.

Under the terms of the letter of intent, definitive agreements are planned to complete within 45 days following standard due diligence at which point Flint Telecom will have to provide a $100,000 non-refundable deposit to move to closing. The agreed purchase price for the assets is $1 million in cash with a further $250,000 at closing with the remaining balance spread over 14 months from closing.

In the June 13 press release spelling out the terms of the LOI, Flint CEO Vincent Browne, said, “This continues our stated acquisition strategy to achieve our target of 10 acquisitions this year, creating a highly profitable business unit delivering integrated voice, data and wireless services to small and medium sized enterprises with profitable annual revenues in excess of $20 million.

“With that milestone achieved,” Browne continued, “we can now show prospective acquisitions and customers that we have access to sufficient capital over the next two years to fund operations and strengthen our balance sheet. It will also free up management resources to concentrate on completing this and previously announced letters of intent that have been delayed due to the current Form-S1 filing process.”

Flint Telecom Group Inc. is an international Telecoms Technology Organization with a portfolio of companies that deliver VoIP and wireless communications and prepaid financial products and services globally.

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Category: OTCBB, Penny Stocks, Technology Stocks
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