TORONTO – Redline Communications Group Inc. (TSX:RDL) has signed non-binding letters of intent to buy two companies that sell wireless infrastructure products to large industrial customers that operate in remote regions.
Toronto-based Redline didn’t identify the acquisition targets but said the North American target company focuses on the energy, utilities and public safety sectors and the Middle Eastern target company addresses the oil and gas industry.
Redline says the acquisitions are part of its strategy of achieving $100 million of profitable revenue as quickly as possible.
According to its latest quarterly financial announcement, Redline had US$8 million of revenue in the first quarter ended March 31. Its net and comprehensive loss was $2.5 million or 18 cents per share.
Last year, it had US$49 million of revenue and lost US$9.5 million or $1 per share. In 2011, it had a net profit and comprehensive income totalling $4 million or 71 cents with $58 million of revenue.