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APS to Invest in Q Comm
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Business New Haven
11/12/2001
By: BNH
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HAMDEN - American Payment Systems (APS), a wholly owned business unit of UIL Holdings Corp. (NYSE: UIL), last month announced its intention to make a strategic investment in Q Comm International Inc., a prepaid wireless technology and information services company. This minority acquisition builds upon APS' present distribution network and enhances its positioning to serve the prepaid marketplace.
APS has agreed to invest $5.7 million for 11,400,000 shares of Q Comm common stock. APS has also agreed to lend $600,000 to Q Comm for operating expenses and provide up to $1 million in equipment leasing. At closing APS will be granted by Q Comm a ten-year warrant to purchase additional Q Comm common stock at an exercise price of $1.25 per share. The warrant will provide APS the right to purchase shares of Q Comm stock sufficient to increase APS' ownership to 52 percent of the outstanding fully diluted shares of Q Comm. Also, after closing, APS has agreed to provide an additional leasing facility for QExpress terminals of up to an additional $9 million subject to APS' credit criteria and discretion.
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