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O.C. BUSINESS PLUS

Irvine Net-Access Firm Seeks Halt to Stock Trading

October 18, 2000|From Staff and wire reports

Universal Broadband Networks Inc., an Irvine high-speed communications carrier, said it has failed to secure significant new vendor financing, creating "substantial uncertainty about the company's ability to continue operations."

In a release Tuesday, the company said it requested that Nasdaq halt trading of Universal's common stock while management weighs the company's options. Universal's shares were halted Tuesday at 41 cents, down 13 cents. The stock reached a 52-week high of $20.25 in March.

Universal said it was informed Tuesday morning that Nortel Networks Corp.'s credit committee decided not to extend any additional financing for more equipment. Funding efforts also focused on Lucent Technologies Inc., Universal Broadband said.

Universal, formerly named IJNT.net Inc., began operations in 1997 as a provider of high-speed wireless Internet access mainly to small and medium-sized businesses.

The company reported a loss of $12.3 million on sales of $683,000 in the quarter ended June 30. As of June 30, Universal had current assets of $1.3 million and current liabilities exceeding $34 million, most of it for equipment financing and line of credit, according to regulatory filings. Last month, the company's founding chairman and vice chairman resigned, along with two other top managers.

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