LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT)
is announcing that the Company’s eligible subsidiaries have agreed to
accept additional funding under the Federal Communications Commission’s
(“FCC”) Alternative – Connect America Cost Model (“A-CAM”) program in
exchange for expanded broadband service to their rural areas.
On January 1, 2017, ten of LICT’s rural telephone companies elected to
participate in the FCC’s A-CAM program. The A-CAM program is designed to
increase speed and expand the deployment of broadband capabilities
throughout the nation’s rural areas and replaced two prior Universal
Service Fund mechanisms for companies electing A-CAM. During 2018, the
FCC expanded the A-CAM program retroactive to January 1, 2017.
Accordingly, in 2018, LICT recorded additional A-CAM revenues of $5.8
million, of which $2.9 million related to the year ended December 31,
2017.
On February 25, 2019, the FCC provided for an additional expansion and
completion of this phase of the program. Under this expanded program,
LICT companies will receive $4.6 million additional A-CAM funds
annually, beginning on January 1, 2019, and their revised funding will
be extended two years, through 2028, in exchange for the provision of
higher broadband speeds to designated locations.
Based upon the acceptance of these offers, the Company is updating its
previously announced full year estimates of revenue and EBITDA before
corporate expenses, for the year ended December 31, 2019, from $117
million and $54 million respectively, to $121 million and $59 million
respectively.
This release contains forward-looking information within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. It should be
recognized that such information is based upon assumptions, projections
and forecasts which may not prove to be correct or may develop
differently from the manner originally expected. Such forward-looking
information must be read and interpreted in light of the cautionary
statements set forth in documents filed by LICT on its website,www.lictcorp.com.
LICT is a holding company with subsidiaries in telecommunications and
multimedia, and actively seeks acquisitions, principally in its existing
business areas.
LICT is listed on OTC Pink ® under the symbol “LICT”. Its web address is
set forth above.
Release: 19-3
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