Deal sells units through Canaccord Genuity to strengthen balance sheet
By Devika Patel
Knoxville, Tenn., Sept. 18 - DragonWave Inc. said it priced a public sale of units to raise about $25 million. The offering was announced on Sept. 12.
The company will sell about 11.9 million units of one common share and a warrant for 0.75 shares at $2.10 per unit. Each whole warrant will be exercisable at $2.70 for five years. The strike price is a 9.31% premium to the Sept. 17 closing share price of $2.47.
Canaccord Genuity is the bookrunning manager.
Settlement is expected on Sept. 23.
Proceeds will be used to strengthen the company's balance sheet and to fund working capital and general corporate purposes.
The Ottawa, Ont., company develops broadband wireless backhaul and pseudowire equipment.
| Issuer: | DragonWave Inc.
|
| Issue: | Units of one common share and a warrant for 0.75 shares
|
| Amount: | $25 million (approximate)
|
| Units: | 11.9 million (approximate)
|
| Price: | $2.10
|
| Warrants: | One warrant for 0.75 shares per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.70
|
| Bookrunner: | Canaccord Genuity
|
| Announcement date: | Sept. 12
|
| Pricing date: | Sept. 18
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Nasdaq: DRWI
|
| Stock price: | $2.47 at close Sept. 17
|
| Market capitalization: | $78.52 million
|
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