DragonWave arranges $1.79-million (U.S.) offering DragonWave arranges $1.79-million (U.S.) offering
DragonWave Inc (2) (C:DRWI)
Shares Issued 7,305,219
Last Close 3/14/2017 $2.55
Wednesday March 15 2017 - News Release
Mr. Patrick Houston reports
DRAGONWAVE INC. ANNOUNCES $1.79 MILLION REGISTERED OFFERING
DragonWave Inc. is raising approximately $1.79-million (U.S.) in gross proceeds in an at-the-market registered direct offering and a concurrent private placement to institutional investors in the United States.
The Company is selling approximately 1,193,332 Common Shares in the registered direct offering. Concurrently in a private placement, the Company is issuing warrants to purchase approximately 596,666 Common Shares at an exercise price of US$1.50 per share, subject to certain standard adjustments, which warrants are not exercisable for six months and one day from issuance and will expire five and half years from the date of issuance. The price per common share and half of a warrant is $1.50.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC is acting as the exclusive placement agent for the registered direct offering and concurrent private placement. The closing of the registered direct offering and the concurrent private placement is expected to take place on or about March 17, 2017, subject to the satisfaction of customary closing conditions.
The net proceeds of the offering, before expenses, will be approximately US$1.6 million. The Company intends to use the net proceeds from the sale of shares in the registered direct offering for general corporate purposes, which may include working capital, general and administrative expenses, capital expenditures and implementation of its strategic priorities. The Company expects that any exercise of the warrants will result in the cash proceeds from the exercise of such warrants being paid to the Company.
The Common Shares described above are being sold in the United States pursuant to registration statement on Form F-3, including the accompanying base prospectus forming a part thereof, previously filed with, and declared effective by, the Securities and Exchange Commission (the "SEC"). Copies of the final prospectus supplement and accompanying base prospectus relating to this Offering may be obtained from Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, at placements@hcwco.com or by accessing the SEC's website, https://www.sec.gov. The warrants are being offered in a private placement under Section 4(a)(2) under the Securities Act of 1933 (the "Securities Act"), and Rule 506(b) promulgated thereunder and have not been registered under the Securities Act. In connection with the offering, the Company intends to rely on the exemptions in Section 602.1 of the Toronto Stock Exchange Company Manual with respect to the rules applicable to private placements and unlisted warrants.
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