2022-08-08 07:30 ET - News Release



Canada NewsWire


BOCA RATON, Fla.Aug. 8, 2022 /CNW/ - EasTower Wireless Inc. ("EasTower" or the "Company") (TSXV: ESTW), a US-based provider of next generation wireless communications infrastructure specializing in the construction, installation, and maintenance of 5G and 4G wireless telecommunication networks, announces a proposed non-brokered private placement (the "Offering") for gross proceeds of up to $500,000 through the issuance of up to 10,000,000 units (a "Unit" or "Units") of the Company at $0.05 per Unit. Each Unit shall consist of (i) one common share (a "Common Share" or "Common Shares") in the capital of the Company, and (ii) one transferable share purchase warrant (a "Warrant" or "Warrants"), with each Warrant entitling the holder thereof to acquire one Common Share at a price of $0.10 per share until twenty-four (24) months following closing, subject to acceleration. The expiry date of the Warrants may be accelerated by the Company at any time following the four (4) month anniversary of closing and prior to the expiry date of the Warrants if the volume weighted average price of the Common Shares on the TSX Venture Exchange (the "Exchange") is greater than $0.25 for any ten (10) consecutive trading days (the "Acceleration Event") , at which time the Company may, within ten (10) business days of the Acceleration Event, accelerate the expiry date of the Warrants by issuing a press release announcing the reduced warrant term whereupon the Warrants will expire on the 20th calendar day after the date of such press release.

The net proceeds of the Offering will be used by the Company for working capital.

In connection with the issue and sale of the Units pursuant to the Offering, the Company will pay registered dealers and finders (i) a cash commission equal to 8% of the aggregate gross proceeds under the Offering, and (ii) non-transferable compensation options to purchase that number of Common Shares as is equal to 8% of the number of Units sold under the Offering, at an exercise price of $0.05 per share exercisable for a period of twenty-four (24) months from closing.

The Offering is subject to Exchange approval and all securities issued pursuant to the Offering will be subject to a Canadian four-month hold period.

About EasTower Wireless Inc.

The Company, through its wholly owned subsidiary, EasTower Communications Inc., is a U.S. provider of wireless infrastructure network build-out and related service within America. The Company specializes in the construction, installation, upgrading, and maintenance of next generation wireless infrastructure networks, including rapidly growing 5G, current 4G and small cell deployments as well as the least know and largest infrastructure plays in US history, the first responder or FirstNet initiative. The Company's diverse, top-tier customer base includes major telecom providers, global original equipment manufacturers (OEMs), corporations and federal government agencies. The Company is currently operating in the State of Florida.