International mail and parcels company Omega United, Inc. dba SkyPostal Networks, Inc. (SkyPostal)has announced the completion of a private placement financing totalling $10 million, and plans to
use the funds for expansion in Latin America.The company also announced it converted approximately $3.2 million of debt into equity in theform of common shares. The new combined capitalization of over $13 million strengthens the company’s now totally debt free balance sheet.
SkyPostal, which specialises in hand delivery of items in Latin America, said in April thatit had been acquired by listed company Omega United in a friendly takeover deal designed to raisefunds for expansion and acquisitions in its core markets.
“We believe this financing will enable SkyPostal to substantially accelerate progress towardour key strategic initiatives and solidify our market presence,” said Albert P. Hernandez,SkyPostal President and CEO. “With recent developments and the closing of this private placement,SkyPostal will be able to consolidate its network in LAC and expand its service offering to Europe.With this additional capital, we will be able to fast track the growth of the company bothorganically and through strategic acquisitions.”
The net proceeds of the offering will be used to improve the hand delivery network in LatinAmerica and the Caribbean with the deployment of its GPS delivery confirmation system, expandservices to customers, and for potential acquisitions. SkyPostal already acquired Spring GlobalMail Latin America, the regional unit of the TNT, Royal Mail and Singapore Post-owned jointventure, in August 2007 for an undisclosed sum.
Miami-based SkyPostal is one of the largest private mail networks in Latin America, handlingmail from European postal administrations, major publishers, mail consolidators, internationalmailers and financial institutions that require time-defined and reliable delivery of their mail,magazines and mail order parcels. The company has exclusive agreements in place with over 20 majorprivate postal services in 20 different countries throughout the region for deliveries.
Falcon Capital, a boutique investment banking firm based in London, acted as placement agentfor the financing.
