The actual amount of common shares which may be offered by GlobeNet's shareholders in the secondary offering will be determined by GlobeNet's Board of Directors and will depend in part on the amount of common shares subscribed for in GlobeNet's offering. Shareholders who wish to participate in the secondary offering will be required to pay all costs associated with the sale of their common shares, including legal, accounting and printing costs and any sales commissions to brokers and dealers. Shareholder elections to participate in the secondary offering must be received by GlobeNet no later than 2:00 p.m. (Eastern time) (which is 3:00 p.m. Bermuda Time) on Monday, June 14, 1999.
Both GlobeNet's offering and the shareholder offering will be made by private placement solely to qualified investors in the United States and Canada in reliance on exemptions from registration and prospectus requirements under the United States and Canadian securities laws. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933 or qualified by prospectus under applicable Canadian securities laws, and may not be offered or sold in the United States or Canada absent such registration or prospectus or an applicable exemption from such requirements.
The offerings are expected to be concluded by June 15, 1999, and funding will occur on or around July 15, 1999. Upon completion of its offering, GlobeNet will use the proceeds to develop its Atlanta-I Project, an undersea fiber optic cable connecting the United States, Bermuda, Brazil and Venezuela. GlobeNet will not receive any proceeds from the secondary offering.
GlobeNet's mission is to provide innovative, seamless, city-to-city international telecommunications solutions to wholesale purchasers using the most technologically advanced undersea fiber optic facilities currently available. GlobeNet, through its operating subsidiary TeleBermuda International Limited, has been providing a full range of international telecommunications services in Bermuda since April, 1997, utilizing the company's BUS-1 undersea fiber optic cable system connecting the United States and Bermuda. TBI now carries over a third of all traffic generated in Bermuda and is rapidly establishing the necessary infrastructure to position the Island as a premier offshore location for supporting the explosive growth in E-commerce. GlobeNet trades on the Bermuda Stock Exchange under the symbol GLOCOM. GlobeNet Communications Group Limited is a Bermuda company, with its headquarters at 2 Carter's Bay Road, Southside, St. David's DD 02, Bermuda.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of these securities under the securities laws of any such jurisdiction.