EXHIBIT 99.1
[WEBLINK LOGO]
WebLink Wireless Announces Amended Credit Facility
and Shelf Registration Effective
DALLAS- Dec. 29, 2000- WebLink Wireless, Inc. (Nasdaq: WLNK) today announced
that it has signed an amendment to its credit facility that enables the Company
to continue the rapid growth of its wireless data business. The amendment allows
the Company to borrow under the amended credit facility up to $80 million,
subject to meeting new financial covenants more focused toward wireless data,
and an additional $20 million with the further approval of the banks. The
outstanding balance of the credit facility at December 31, 2000 is expected to
be $53.4 million with an additional $1.6 million reserved for letters of credit.
The company also announced that its shelf registration of 8.5 million shares has
been declared effective by the Securities and Exchange Commission. The Company
plans to raise a significant amount of equity during 2001, including through the
planned sale of shares under the shelf registration. With this equity and the
funds available under the amended credit facility, the Company expects to have
the financial resources needed to fund its operating and capital requirements
for 2001, although there can be no assurance that the equity financing necessary
to satisfy its cash requirements will be obtained. This release does not
constitute an offer to sell or a solicitation of an offer to buy securities, nor
shall there be any sale of the securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such state.
"The timing of the bank amendment and the effectiveness of the shelf
registration works very well for us" said John D. Beletic, Chairman and CEO of
WebLink Wireless. "With our fourth quarter wireless data net adds coming in very
strong as predicted, we expect the environment for equity raising for us to be
better in the first quarter of next year. Assuming adequate funding, we project
our wireless data business will achieve EBITDA breakeven in the third quarter of
2001, just 6 quarters after first availability of full 2-way devices."
WebLink Wireless Inc. is a leader in the wireless data industry, providing
wireless email, wireless instant messaging, information on demand and
traditional paging services throughout United States. The company's nationwide
2-Way network is the largest of its kind reaching approximately 90 percent of
the U.S. population, and through strategic partnerships, extends into Canada and
Mexico. The Dallas-based company, which serves over 2 million customers,
recorded total revenues of $325 million for the year ended Dec. 31, 1999. For
more information, visit the website at www.weblinkwireless.com.
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This press release includes forward-looking statements that involve risks and
uncertainties that are detailed from time to time in the SEC filings of WebLink
Wireless, Inc. including its most recent annual report on Form 10-K and any
subsequently filed reports on Form 10-Q and Form8-K. Actual results may differ
materially from those projected due to inability to raise needed equity capital
in 2001, increased competition, pricing pressures, delays in new service
introductions, delays in the introduction of new subscriber devices, regulatory
issues and other business factors. These forward-looking statements represent
the company's judgment as of the date of this release. The company disclaims,
however, any intent or obligation to update these forward-looking statements.
Contacts:
Investors: Media:
Kelly Prentiss Eric Van Steenburg
WebLink Wireless WebLink Wireless
(214) 765-3874 (214) 765-3937
[email protected] [email protected]
