Reno, NV – October 26, 2016 – CIBL, Inc. (“CIBL” or the “Company”; OTC Pink ®: CIBY) announces financial results for the third quarter of 2016. See Attachments A and B.
Summary – At September 30, 2016, CIBL held $22.5 million in liquid assets or $1,329 per share, based on the 16,927 shares outstanding at that date. In addition, the company owns 166,556 common shares of ICTC Group, Inc. (“ICTC”; OTC Pink ®: ICTG), or 43.5% of the shares outstanding, and has voting control through a voting rights agreement with our Chairman; and 10,000 shares of Solix Inc., a private outsourcing firm that provides, among other services, billing and collection for the telecommunications industry.
Operating Results – During the third quarter of 2016, the net loss attributable to CIBL was $182,000, or $10.73 per share, as compared to a gain attributable to CIBL of $125,000, or $6.94 per share, in the third quarter of 2015. Significant items affecting the second quarter results are:
- The cost of CIBL’s corporate activities, net of the corporate tax benefit, was $88,000 in the third quarter of in 2016 as compared to $61,000 in the 2015 period.
- In 2016’s third quarter, net income from CIBL’s ownership in ICTC was $50,000 as compared to net income from ICTC of $114,000 in the 2015 period. Of note, in 2015 ICTC’s net income was significantly bolstered by special cash distributions from ICTC’s investment is the North Dakota RSA’s (“Rural Service Area” – mobile wireless data and communications companies).
- The write-off of the SPAC deferred costs was $132,000, net of the corporate tax benefit, in the 2016 period.
Information on ICTC can be obtained on its website, www.ictcgroup.net, and information on CIBL can be obtained on our website: www.ciblinc.com.
SPAC – On July 21, 2015, CIBL formed Nevada PMV Acquisition Holding Company, LLC (“Nevada PMV”) for acting as the sponsor for a special purpose acquisition company, or SPAC. On August 7, 2015 PMV Acquisition Corp. (“PMV”) was formed by Nevada PMV as a SPAC for effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving PMV and one or more businesses. As a SPAC, PMV is a shell (blank check) company with no operations and whose purpose was to go public with the intention of merging with or acquiring a company with the proceeds of the SPAC’s initial public offering (“IPO”). Despite efforts in 2015 and 2016, to effectuate an IPO, market conditions were such that the IPO could not be accomplished. In the third quarter of 2016, it was determined that the probability of a success in the near term was low and that further efforts at his time would not be productive. Accordingly, deferred costs of $205,000($132,000 net of corporate tax benefit) were written-off in the Third Quarter of 2016. CIBL’s Board of Directors will continue to evaluate of range of strategic options for the company.
Share Repurchases – During the nine months ended September 30, 2016, the Company acquired 798 of its shares at an average price of $1,265 per share. Since its spin-off from LICT Corporation in 2007, CIBL has repurchased 8,188 of its shares for a total of $9.3 million, or an average price of $1,132 per share.
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To the extent this release may contain 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, including without limitation business conditions and financial markets, and the cautionary statements set forth in documents filed by CIBL on its website, www.ciblinc.com. Thus, such information is subject to uncertainties, risks and inaccuracies, which could be material, and there can be no assurance that such information is accurate.
CIBL is a holding company with interests in telecommunications operations. CIBL is listed on OTC Pink® under the symbol CIBY.
Contact: Robert E. Dolan