Source: Attis Industries, Inc.
September 10, 2018 08:30 ET
Attis Industries Executes Purchase Agreement to Acquire Custom Cable Services, Inc.
Attis Infrastructure Transaction to Consolidate 5G Infrastructure Companies
MILTON, GA, Sept. 10, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - Attis Industries Inc. (NASDAQ: ATIS) (the “Company” or “Attis”), a diversified innovation and technology holding company emphasizing renewable fuels, bio-based plastics, healthcare and building a communications infrastructure, today announced it has executed a purchase agreement to acquire Custom Cable Services, Inc. (“CCS”). The agreement is an all stock deal valued at $4.6 million. The transaction commences the formation of a new subsidiary, Attis Infrastructure, with a strategy to consolidate 5G infrastructure companies and is expected to close in the next few weeks.
Custom Cable Services, Inc., founded in 1980 and based in Birmingham, Alabama, is a well-regarded broadband network construction and maintenance firm. Over the past 5 years, CCS has generated consistent annual revenues between $10-$12 million with $1.5-$2.0 million in EBITDA. CCS has key long-term relationships with Charter and Cox Communications for multi-year projects.
CCS strategically transition
ned its business model in 2015 to focus on OSP Fiber construction under multi-year MSAs and away from customer premise equipment, installation and fulfillment services. CCS’s primary geographies include the Midwest, Southwest and Southeast markets.
Jeff Cosman, Chief Executive Officer of Attis Industries, commented, “The 5G roll out expected to begin in late 2018 will be one of the most vital investments being made in our nation’s infrastructure. I compare the deployment of 5G to that of the western expansion in 1845 that started the construction of the railroad from coast to coast. The goal of 5G is to provide 1000 times faster speeds while at the same time allow for over 100 times more connected devices with a 90% reduction in network energy utilization and 100% network coverage. To do this, 5G must have fiber infrastructure. The acquisition of Custom Cable is the first step in building a vital infrastructure company under the Attis banner. The management team of CCS will stay on with Attis and plans to grow the business organically and through acquisition.” Cosman continued, “The telecommunications industry is the fourth utility in the US. When an investor now looks at Attis Industries, they see a company focused on fulfilling essential needs in healthcare, energy independence and digital communications. Today, each of these sectors provide high growth opportunities that collectively account for more than a third of our nations GDP. Attis has the tools and management team to build a diverse holding company that provide investors opportunities for high growth within our business units.”
Attis Industries plans to update the shareholders on the closing of this transaction and the formation of Attis Infrastructure during its shareholder call at the end of September.
Fiber Industry Overview:
Moor Insights & Strategy, considered to be one of a handful of research firms with a thorough understanding of 5G’s economic potential, estimates the infrastructure spending on 5G by 2025 will exceed $326 billion. As Ciena's Brian Lavallée has offered from the International Telecommunications Union's (ITU) latest “Trends in Telecommunication Reform,” “5G mobile networks will significantly affect both the wireless side (obviously!) and the wireline side of the global network infrastructure. In fact, 5G's formidable network performance goals are heavily predicated on the availability of fiber, and lots of it, to cell sites.” Further, there seems to be insufficient specialty contractor resources to meet demand for installation, providing a great opportunity for Attis Infrastructure to grow expeditiously.
Major Drivers:
Wireless carriers are building up to 10x more fiber-fed wireless antennae and access points, deploying small cells and DAS to deliver necessary bandwidth to support exploding demand and emerging 5G applications in gaming, social media, augmented reality, connected cars, healthcare, etc.
Attis Industries Inc.
Attis Industries Inc. (NASDAQ: ATIS) is a holding company focused on developing and building businesses that play important roles in the new economy. We strive to encourage our employees to be entrepreneurs focused on innovation and technology. We will remain dynamic, persistent and motivated to our mission of winning. The growth of our company will rely on our integrity and our vision for the future. Attis Industries will continue to fulfill essential needs in healthcare, energy independence and digital communications. Today, each of these sectors provide high growth opportunities that collectively account for more than a third of our nations GDP. For more information, visit: www.attisind.com
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “should,” “would” or similar words. You should consider these statements carefully because they discuss our plans, targets, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements are subject to certain risks, uncertainties, and assumptions, including, but not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies; the ability of the Company to continue to meet the listing requirements of NASDAQ; the ability of the Company to execute on a business plan that permits the technologies and innovations businesses to provide sufficient growth, revenue, liquidity and cash flows for sustaining the Company’s go-forward business and meeting any of its obligations under its indebtedness for borrowed money, and the risks identified and discussed under the caption “Risk Factors” in the Attis Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018 and the other documents Attis files with the SEC from time to time. There will be events in the future, however, that Attis is not able to predict accurately or control. Attis’s actual results may differ materially from the expectations that Attis describes in its forward-looking statements. Factors or events that could cause Attis’s actual results to materially differ may emerge from time to time, and it is not possible for Attis to accurately predict all of them. Any forward-looking statement made by Attis in this press release speaks only as of the date on which Attis makes it. Attis undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Media and Investors Contact:
Hayden IR
(917) 658-7878
hart@haydenir.com
