TORONTO – Canadian Satellite Radio, owners of XM Radio Canada has raised $20 million in a private placement of convertible unsecured subordinated debentures due September 12, 2014.
"We are very pleased to announce this financing, especially during these challenging credit market conditions," said John Bitove, chairman and CEO of CSR, in a press release. "Our growth exceeded expectations this quarter and as we continue to focus on new development initiatives, we will use the proceeds to search for innovative opportunities to aggressively grow the business and further increase our subscriber base."
XM Canada also announced this week it has achieved 306,000 subscribers as of the end of its fourth quarter ended August 31, 2007. The number of subscribers has more than doubled since CSR’s 2006 fiscal year, in part due to the significant subscriber growth achieved during the fourth quarter, says the press release.
The debentures are "a prudent move that provides an additional source of funding to achieve even greater growth targets," said Bitove. "I continue to be extremely confident in our business plan."
