FREEDOM4 Group has developed WiMAX network coverage in Manchester, Milton Keynes and Warwick.
The company is already offering a combined WiFi/3G service but revenues were minimal in 2008.
Intel has invested £11.4m in the WiMAX joint venture - FREEDOM4 still has a 52% stake in the operation. The joint venture is trying to change its licence so that it also includes mobile services.
The company’s share of the joint ventures loss was £9.4m, including a one-off charge of £4.5m related to changes in roll-out plans. The ongoing monthly losses are at a much lower rate. The joint venture is valued at £5.1m.
Yet the share price does not reflect the strong market position in WiMAX.
At 1.75p a share, FREEDOM4 is valued at £18.1m. That is more than covered by the £4.6m in cash and the £18.6m loan note held by the company.
The loan note should be paid in October and the cash will be distributed to shareholders. That covers the current market value.
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