New entrant Mobilicity just announced a massive injection of cash. During the 2008 Spectrum Auction they invested $243.1-million for 10 licenses in Toronto, Vancouver, Calgary, Edmonton and Ottawa. All the cities are now operational but the only missing piece of the puzzle is how many subscribers they have brought on. Since they are a private company they don’t need to release these details, but RBC estimated by the end of 2010 they had 60,000.
Mobilicity raised $215 million through a debt offering by National Bank Financial Inc. and GMP Securities and will “provide Mobilicity with growth capital to further strengthen its customer experience across Canada”.
President and CEO Dave Dobbin stated that “Mobilicity has a compelling business model and the best value proposition for consumers and we are excited about getting additional support from Canada’s financial community… Today’s news, made just two weeks shy of the first anniversary of our Toronto launch and on the heels of our successful launch in Calgary yesterday, confirms Mobilicity’s place as the leading, innovative new entrant in Canada’s wireless industry. We are very well positioned for future growth and opportunities.”
Personally, I’d love to see the fine details of $215 million deal.