Velatel Global Comm. (fka VELA)

[moneymonkey1]

8:03 AM ET 4/2/12 | Marketwire
VelaTel Global Communications (OTCQB: VELA) (PINKSHEETS: VELA), a leader in deploying and operating wireless broadband and telecommunication networks worldwide, is pleased to announce that it has reached a major milestone by closing its acquisition of Herlong Investments Limited and its operating subsidiaries, Novi-Net and Montenegro Connect. The acquisition provides VelaTel a low cost entry into the geographic center of the Balkan countries and leads to other opportunities in the region. VelaTel is on track with its projected timeline to begin deployment of both networks during Q2 2012.

VelaTel closed the acquisition by paying 500,000 Euros along with credit for $1,000,000 of equipment down payment deposit VelaTel has made to its preferred equipment vendor ZTE Corporation. The closing proceeds will be used for deployment and expansion of Novi-Net's and Montenegro Connects' wireless broadband networks. Closing this acquisition allows VelaTel to report the financial results of these subsidiaries on its consolidated financial statements, including more than $1,000,000 existing annualized revenue of Novi-Net.