The parent company of a major Lubbock employer will ask its current investors to raise their stakes by $5 million.
Xfone, the parent of NTS Communications, lost money in the recession. Its most recent quarterly filing still shows a net loss but not as bad as previous quarters. The most recent report also shows improvement in digital fiber income. Just last week the company announced yet another Texas city, Burkburnett, will join its "fiber to the premise" high speed network.
If all goes according to plan, current investors will soon have a chance to purchase the right to acquire more common stock in the future. The company is not selling more stock; not yet. Instead, it is selling the right for current investors to buy more stock in the future in a so-called "rights offering" for 30 cents per share.
Xfone says, "There can be no assurance that the Rights Offering will be successful," depending upon the actions of financial regulators.
NTS is among the top 50 largest employers in Lubbock.
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