3. Background
Yaktastic previously acquired Yak America from Yak on November 7, 2006. The transfer of Yak America to Yaktastic resulted from a decision by Yak's Board of Directors to approve an offer by Globalive Communications Corp. (Globalive), a Novia Scotia limited liability company, to acquire all of the outstanding shares of Yak's common stock. Since Yak America is subject to federal and state regulation, Yak and Globalive believed that this transaction would be simpler if Yak America were not one of the entities transferred to Globalive. Further, the owners of Yak had determined that their continued ownership of Yak America was no longer consistent with their investment objectives. Therefore, Yak wished to transfer Yak America to Yaktastic before consummating the sale of its common stock to Globalive.
Although Yak, Yak America, and Yaktastic obtained approval of this transaction from the Federal Communications Commission (FCC), the sale of Yak America to Yaktastic closed before the parties had obtained advance Commission approval of the transaction, in violation of Section 854(a). The parties subsequently sought retroactive Commission approval on a nunc pro tunc
basis.5 6 In D.07-05-004, we approved the sale of Yak America to Yaktastic on a prospective basis only, and denied the request for approval on a nunc pro tunc basis. We also imposed a fine of $5,000 based on this violation of Section 854(a).
5 See Application (A.) 06-10-031, as amended.
6 The phrase "nunc pro tunc" meaning "now for then", refers to those acts which are allowed to be done at a later time "with the same effect as if regularly done." (Blacks Law Dictionary, 4th Revised Ed. (1968), p. 1,218.)
