Nucentrix Broadband Networks Inc. pulled a 2.3
million-share secondary stock offering last week, citing adverse market conditions and an
increase in its liquidity.
The company, formerly known as Heartland Wireless
Communications Inc., filed for the offering in August.
Nucentrix hoped to raise about $66 million through the
offering, which would have been used to expand its wireless-broadband network and for
future acquisitions.
The company is testing its
multichannel-multipoint-distribution-service-based wireless high-speed Internet service in
two markets in Texas -- Austin and Sherman-Denison.
It also resells a combination of its wireless cable service
and DirecTV Inc. direct-broadcast satellite service to about 149,000 customers in
apartment complexes and condominiums in nine states. The company has MMDS licenses for
about 87 markets.
"We believe our current capital resources and access
to equipment financing will allow us to complete our upcoming field trials and expected
market launches into early 2001," Nucentrix chairman Carroll McHenry said in a
prepared statement.
But McHenry added that the company would tap the public
markets in the future if it believes market conditions are in its favor.
In the past week, technology stocks have been hammered as
investors exited the sector in droves amid concerns about rising interest rates. The
NASDAQ exchange, where Nucentrix trades, lost 272 points between Feb. 17 and 18 on a
combination of interest-rate concerns and profit-taking by investors in the
technology-focused exchange.
Although some technology stocks rebounded Feb. 22, the
NASDAQ finished the day down 29.62 points to close at 4,382.12. This comes just three
trading days after posting a new high Thursday, Feb. 16, of 4,548.92.
Nucentrix emerged last year from Heartland's Chapter
11 reorganization. The company said that although it plans to expand its broadband-data
service to other markets, it will not grow its video services beyond their current market
areas.
Nucentrix shares closed at $27.25 Feb. 22, down $1.25.
