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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
December 29, 1999
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Date of Report (Date of earliest event reported)
STARTEC GLOBAL COMMUNICATIONS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 000-23087 52-2099559
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(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification
Incorporation) No.)
10411 Motor City Drive
Bethesda, Maryland 20817
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
301-365-8959
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Not applicable
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
The Company previously issued the accompanying press release regarding
the completed private sale of 1,875,000 shares of its Common Stock.
ITEM 7. Financial Statements and Exhibits.
99.1 Press Release dated December 29, 1999.
(2)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Report to be signed on its
behalf by the undersigned thereunto duly authorized.
STARTEC GLOBAL COMMUNICATIONS CORPORATION
By: /s/ PRABHAV V. MANIYAR
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Prabhav V. Maniyar
Senior Vice President and Chief
Financial Officer
Dated: December 29, 1999
(3)
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Exhibit No. Description
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99.1 Press Release dated December 29, 1999
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(4)
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EXHIBIT 99.1
Company Press Release
FOR IMMEDIATE RELEASE
STARTEC RAISES $30 MILLION IN PRIVATE PLACEMENT OF COMMON STOCK FOR
INTERNET
INITIATIVES
* Deployment of VOIP Network
* Launch of ISP Services
* Development of Ethnic Web Portals
BETHESDA, MD - December 29, 1999: Startec Global Communications Corporation
(Nasdaq: STGC), a facilities-based provider of communications services targeting
ethnic communities worldwide, today announced that it has completed a private
placement of 1.875 million shares of its common stock at $16.50 per share for
approximately $30.9 million in gross proceeds.
The proceeds from the offering will be used primarily to fund Startec's Internet
initiatives,including the expansion of its VOIP network facilities, the
acquisition and development of additional ethnic-specific
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content and features for eStart, its on-line ethnic virtual community brand, and
the expansion and enhancement of its Internet services.
Industry sources expect the worldwide VOIP market to grow to more than $25
billion by the year 2005. Startec believes it is in a particularly strong
position to become a leading provider of VOIP service into the emerging
economies. In 1999, Startec carried almost a billion minutes of voice traffic
into the emerging economies.
"Currently, we have 20 VOIP devices deployed in 17 countries. We expect to use
the funds to expand this reach considerably," said Ram Mukunda, chief executive
officer of Startec.
As part of the expansion of Startec's Internet services, a portion of the
proceeds will be used to launch ISP services in North America and to select
countries in the emerging economies. "PC penetration in our customer base is
much higher than the US average," said Mukunda. "To capitalize on this
significant market, we will offer ISP service to our existing customers, using a
bundled service model that includes free ISP service for customers that bill $60
or more per month in international long distance service."
Startec recently launched Arab and Iranian ethnic Web portals under the eStart
brand. In 2000, the Company expects to launch seven additional Web communities.
"The number of Internet users in the emerging economies is expected to reach 400
million by the year 2005," said Mukunda. "We plan to leverage our resources to
create one of the leading ethnically focused on-line brands on the Internet. ISP
services will be packaged with the ethnic portals, creating a complete bundle of
telecom services. Moreover, even as a stand-alone product, the portals allow us
to reach out to the communities that we serve over a much larger geographic
area."
Recent Company Highlights:
* In December, Startec launched its Iranian virtual community through its
on-line brand, eStart, located at www.estart.com. eStart is a single, on-line
ethnic destination featuring different virtual communities linked by an
in-language gateway page. By the end of 2000, it will include Arab, Iranian,
Chinese, Turkish, Indian, Russian, Polish, Israeli and Latin American virtual
communities.
* Also in December, Startec secured a license to provide Internet services
in Hong Kong. The license permits the Company to offer Internet access, IP
transport and collocation facilities to other ISPs and telecom carriers located
in Hong Kong.
* In November, Startec acquired Worldwide Telecommunications, Ltd., a Hong
Kong-based provider of voice and data services. This acquisition positions
Startec to quickly penetrate the rapidly growing and newly opened Chinese market
and to deploy VOIP technology in the Pacific Rim.
* In November, Startec announced the completion of the first phase of a
global VOIP deployment into the emerging economies utilizing Clarent
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technology. Startec has installed 20 IP telephony gateways with access to 17
countries.
* In October, Startec announced the launch of its new Arab on-line
virtual community, www.estart.com, the first in a series of nine planned
ethnic on-line virtual communities.
About Startec:
Startec Global Communications Corporation is a facilities-based provider of
communications services to ethnic communities. Startec is building a
state-of-the-art network, equipped with Internet Protocol technology providing
seamless connectivity to the emerging economies of the world, allowing it to
integrate voice, data, Internet, and video services on a single network. Once
completed, Startec's network will provide connectivity from points originating
in the U.S., Canada and Europe and terminating in the emerging economies on an
IP/ATM network. The Company's class of common stock is traded on The Nasdaq
National Market under the symbol "STGC."
Other than historical information contained herein, certain statements in this
release are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1994. Forward-looking statements in this
release involve a number of risks and uncertainties including, but not limited
to, changes in market conditions, government regulation, technology, the
international telecommunications industry, and the global economy, availability
of transmission facilities, management of rapid growth, entry into new and
developing markets, competition, customer concentration and attrition, and the
expansion of the global network. These risk factors are discussed in further
detail in the Company's SEC filings.
For more information, contact:
Jennifer Boyer
Investor Relations
Startec Global Communications Corporation
Tel. (301) 767-1430
[email protected]
Jennifer L. Boyer
Investor Relations
Startec Global Communications
Tel. (301) 767 - 1430
Fax (301) 365 - 1744
www.startec.com
