WVT Communications Group Commences Corporate Restructuring
Warwick, NY – November 1, 2012 – Warwick Valley Telephone Company (NASDAQ: WWVY), referred to as WVT Communications Group or the Company, the parent company of leading cloud communications pioneers, today announced the commencement of its corporate governance restructuring resulting in the Company's successful transformation into an unregulated holding company. Under the organization restructuring, the Company transferred substantially all of its assets and liabilities associated with its regulated local telephone business to a new wholly-owned subsidiary. As a result, all of the Company's business units are now subsidiaries of the Company, with only the ILEC operation being regulated and subject to telecommunications governing bodies.
"The approval for restructuring of our corporate organization enables the Company to benefit from the flexibility to deploy capital for growth in ways similar to other diversified communications companies," said Duane W. Albro, WVT Communication Group's Chief Executive Officer. "With the new corporate organization now in place, we may now proceed with the complete rebranding of the Company, which is already positioned as a fast growing, ninth largest cloud-based Unified Communications ("UC") services provider in the United States."
Mr. Albro continued, "Upon shareholder approval, we intend to change the holding company name to WVT Communications Group, Inc. All of these changes were factored into the impending transfer of our common stock to the NYSE MKT on November 6, 2012, with "WVT" as our new ticker symbol. We look forward to elevating our prominence in the financial community as well as in the business community where we market our award winning Unified Communications service."
The Company's corporate governance restructuring commenced with a landmark decision by the New York State Public Service Commission which granted the ability to transfer its regulated assets to a newly formed wholly-owned subsidiary named Warwick Valley Telephone. This decision was the initial requirement for the Company, a 110 year old regulated ILEC with operations in the mid-Hudson Valley region of New York and northern New Jersey, to have its ILEC business operate as a regulated subsidiary of a newly created holding company. More recently, a similarly favorable decision was received by the New Jersey Public Service Commission for the Company's ILEC operations in the northern region of that state. The Company's cloud-based UC businesses, Alteva and USA Datanet, continue to be wholly-owned subsidiaries of the Company.