Clearwire raises $715.5 million from shareholders
WiMAX operator Clearwire has raised $715.5 million in funds for its network expansion plans in the LTE space.
The company is planning to use the money to roll out a TD LTE network across the densely populated urban areas of its existing US WiMAX network, where demand is sufficiently high.
$384.1 million was raised from the sale of common shares with the remainder from majority shareholder Sprint, who had previously committed to providing additional funding if the public sale met requirements. The company used its pre-emptive right and purchased $331.4 million of shares.
The money is likely to set Clearwire back on track after previous speculation on how it intended to fund its planned LTE network. The company recently lost its wholesale agreement with Comcast to Verizon.