New York firm buys U.S. Mobile Telecommunications

July 03, 1998|By Kristine Henry | Kristine Henry,SUN STAFF

U.S. Mobile Services Inc. of Annapolis Junction said yesterday that it has been sold to United Acquisition II Corp., a New York investment company, in a stock exchange valued at $26 million. The merged company will be known as U.S. Mobile Services Inc. and trade on the OTC Bulletin Board under the ticker symbol USMS.

Privately held U.S. Mobile, which has 25 employees, provides pre-paid cellular, long-distance and local phone service. U.S. Mobile's chief executive officer and chairman, Brian A. McCormick, and president, Robert L. Cleveland, will hold those positions in the new venture.

Before the merger, United Acquisition completed a 1-for-25 reverse stock split that raised the value of a single share from 13 cents to $3.25 and left it with 9.06 million shares outstanding.

"We're one of the few companies in the country that offers wireless services virtually anywhere in the country," McCormick said. "We also have a Web-based storefront that provides pre-paid service to our cellular customers."

U.S. Mobile posted a loss of $182,000 for 1997, but it rebounded in this year's first quarter. The company reported net income of $362,000 for the quarter ended March 31, compared with a loss of $19,000 in the first quarter of 1997. First-quarter revenues were $1.3 million.

"The merger will allow U.S. Mobile to augment its customer base through continued strong internal growth as well as through acquisition of similarly situated companies," McCormick said.

Pub Date: 7/03/98

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