SkyPostal Networks, Inc. recently announced that their newest facility at Newark Airport, handling their mail and parcel post traffic to and from the UK and Europe, is in full operation. The company also completed a private placement financing totaling $10 million since becoming a publicly traded company. Falcon Capital, a boutique investment banking firm based in London, acted as a placement agent for the financing.
SkyPostal is an international wholesale mail distribution company specializing in hand delivery of commercial mail and periodicals to the Latin America-Caribbean region (LAC). The new facility will service existing customers throughout the Northeast and serve new business the company expects to gain from their recent key strategic marketing agreement with Deutsche Post’s U.S. Division – DHL Global Mail. By capitalizing on the ability to utilize Deutsche Post’s global network, the SkyPostal expansion into Newark will facilitate the introduction of service to Europe.
“The operations at Newark will help us gain new business by having a local presence in the Northeast region. By changing and expanding our shipment processing locations, we reduce line haul costs and improve transit times. Mail shipments normally processed through our Miami hub can now be routed more efficiently to Europe and certain LAC destinations through the Newark location,” stated Albert P. Hernandez, President and CEO of SkyPostal.
“This development allows SkyPostal to increase the rate of international expansion while improving service quality. We anticipate even greater growth potential in the near future with the addition of hand delivery service to Europe,” he concluded.
In order to complete the $10 million private financing placement, the company converted approximately $3.2 million of debt into equity in the form of common shares. The net proceeds of the offering will be used to improve the hand-delivery network in LAC with the deployment of their GPS delivery confirmation system, expand services to customers, and allow for potential acquisitions. Enhancing their market presence is a key issue for the company.
“We believe this financing will enable SkyPostal to substantially accelerate progress toward our key strategic initiatives and solidify our market presence,” commented Mr. Hernandez. He continued, “SkyPostal will be able to consolidate its network in LAC and expand its service offering to Europe. With this additional capital, we will be able to fast track the growth of the company both organically and through strategic acquisitions.”
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