Hammer will acquire the equity of American Network, a New York-based CLEC.
American Network obtained its NYS CLEC license in 1997 and has a number of interconnection agreements, wholesale agreements and numbering assets that will aid Hammer in its growth plans in the north eastern U.S.
Hammer subsidiaries possess CLEC licenses in several states including New York, New Jersey and Florida as well as a nationwide CMRS license and have access to a number of other states via its joint venture agreements with partner CLECs.
Hammer is acquiring all of the equity of American Network in exchange for common stock and payables associated with the expenses of the transaction. The acquisition is non-dilutive to common shareholders. The transaction is expected to close in February pending necessary approvals.