SUNNYVALE, Calif.-Adaptive Broadband Corp. signed a contract with Casil Telecommunications Holdings Ltd., a telecommunications subsidiary of China Aerospace Industry Corp., making the company a manufacturing and market access partner for Adaptive Broadband’s AB-Access fixed broadband wireless equipment in China.
Adaptive Broadband noted that if all phases of the agreement are achieved, the contract has a potential value of more than $500 million during its 42-month term, including $20 million in the first year.
Castel said carriers initially will deploy AB-Access in China’s Guangdong province and it has already received commitments for field trials with Guangdong Telecom and several other provincial subsidiaries of China Telecom.
In other news, Adaptive Broadband’s board of directors approved a two-for-one stock split of its common shares in the form of a one-for-one stock dividend.
Stockholders of record as of March 23, will receive one additional share of each share held. The additional shares are expected to be distributed by the company’s transfer agent, Boston Equiserve, on March 30.
The stock dividend will increase the total shares outstanding of common stock to approximately 34.8 million.
The company’s shareholders also approved an increase in authorized shares from 30 million to 250 million at a special meeting held March 13. According to the company, these additional shares may be used in the future to raise money or provide financial incentives for employees.
