Sydney, Feb 25, 2009 AEST (ABN Newswire) - ComTel Corporation Limited (ASX:CMO)(PINK:CMMEF) announce the consolidated entity earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) for the six months to 31 December 2008 was A$2,665,710 (2007: A$4,009,033). The consolidated entity net loss after income tax for the six months to 31 December 2008 was A$(1,409,341) (2007: net profit of A$2,632,832).

Significant Changes In The State Of Affairs

On 3 November 2008, the Company drew down A$5.0 million under its senior secured loan facility with Co-Investor Capital Partners Pty Ltd (Co-Investor) and A$1.75 million under the Co-Investor bridging loan facility. The funds drawn under these facilities were used to pay out the Company's bank debt of A$6.6 million with the ANZ bank.

On 4 November 2008, the Company made a share placement to Co-Investor of 19,888,091 ordinary shares at 4.5 cents per share. The proceeds raised of A$0.9 million were used to repay part of the Co-Investor A$1.75 million bridging loan facility.

On 4 November 2008, the Company issued 25,000,000 unlisted options to Co-Investor at an exercise price of 6 cents per ordinary share, exercisable until 4 November 2011. The issue was consideration for providing the A$5.0 million 3 year senior secured loan facility and the A$1.75 million bridging loan facility and was approved at the Company's annual general meeting on 31 October 2008.

On 12 December 2008, the Company successfully completed a pro rata renounceable entitlement issue which raised net proceeds of A$9.1 million. Under the prospectus issued on 3 November 2008, shareholders were entitled to apply for two new ordinary shares for every one share held on the record date of 13 November 2009 at an exercise price of 3 cents per share. The offer closed on 4 December 2008 and was fully underwritten by Co-Investor. Co-Investor's shareholding in the Company increased to 68.8% pursuant to their rights issue allotment.

On 16 December 2008, the Company paid A$7.9 million due under the Empowered Communications acquisition agreements and repaid the A$0.9 million balance of the A$1.75 million Co-Investor bridging loan from the net proceeds of the A$9.1 million rights issue.

EVENTS SUBSEQUENT TO BALANCE DATE

On 5 January 2009, Phillip Pryke was appointed to the Board of the Company as a non-executive Director.

On 16 January 2009, Empowered Communications advised its Communitel members that the Communitel web site would be closed down on 6 April 2009. This decision resulted in an impairment of the software intangible asset of A$718,150.

On 30 January 2009, Kevin Weldon resigned as a non-executive Director and Chairman of the Board. Phillip Pryke was appointed as Chairman of the Board and Roger Steinepreis was appointed as Chairman of the Audit and Remuneration committees.

On 30 January 2009, the Company repaid A$210,000 to two convertible loan and note holders. As at the date of this report, the balance of the convertible loan and note was A$1,050,000 (30 June 2008: A$1,500,000).

Contact

David Sweet
Managing Director
Mob: +61-414-888-999

Emma Cullen-Ward
Investor Relations
Mob: +61-414-989-137
Website www.comtelcorporation.com.au



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