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DragonWave said Thursday it plans to raise $21.5 million by issuing shares in the company on both Nasdaq and the TSX.
DragonWave is taking advantage of a recent rise in its share price, which was trading as low as $1.54 a month ago on the TSX. It closed Thursday at $2.
The shares had reached $2.75 earlier this month after investors digested the implications of a potentially transformative deal with Reliance Jio — an India-based giant that is building a fourth-generation wireless telephone network across the subcontinent. DragonWave is one of two just suppliers from which Reliance Jio intends to buy microwave products.
A move by DragonWave to shore up its balance sheet had been expected. Its cash balance at the end of May was just $15.6 million U.S., and the firm is expected to incur additional losses in the year ahead as it resumes growing.
The proposed offering — which is being underwritten by CIBC and H.C. Wainwright & Co. — will dilute the equity held by existing DragonWave shareholders. Indeed, the value of shares had been weakening in recent weeks, perhaps in anticipation of a significant offering.
DragonWave said it intends to offer units, each consisting of one common share and half a warrant. One warrant, in turn, can be traded in for a common share during the next two years.
DragonWave added it will set the price for the $21.5 million worth of units before the stock markets open on Friday.
The Kanata firm also filed paperwork (a short form prospectus) that would allow it to secure as much as $80 million U.S. in stages over the next two years by issuing additional debt or equity if circumstances warrant.
jbagnall@ottawacitizen.com
查看原文...
DragonWave is taking advantage of a recent rise in its share price, which was trading as low as $1.54 a month ago on the TSX. It closed Thursday at $2.
The shares had reached $2.75 earlier this month after investors digested the implications of a potentially transformative deal with Reliance Jio — an India-based giant that is building a fourth-generation wireless telephone network across the subcontinent. DragonWave is one of two just suppliers from which Reliance Jio intends to buy microwave products.
A move by DragonWave to shore up its balance sheet had been expected. Its cash balance at the end of May was just $15.6 million U.S., and the firm is expected to incur additional losses in the year ahead as it resumes growing.
The proposed offering — which is being underwritten by CIBC and H.C. Wainwright & Co. — will dilute the equity held by existing DragonWave shareholders. Indeed, the value of shares had been weakening in recent weeks, perhaps in anticipation of a significant offering.
DragonWave said it intends to offer units, each consisting of one common share and half a warrant. One warrant, in turn, can be traded in for a common share during the next two years.
DragonWave added it will set the price for the $21.5 million worth of units before the stock markets open on Friday.
The Kanata firm also filed paperwork (a short form prospectus) that would allow it to secure as much as $80 million U.S. in stages over the next two years by issuing additional debt or equity if circumstances warrant.
jbagnall@ottawacitizen.com
查看原文...
