OTTAWA, Ontario–(BUSINESS WIRE)–Edgewater Wireless Systems Inc. (TSX-V: YFI) (OTCQB: KPIFF) (the “Company”),
the developer of WiFi3™ multi-channel WiFi chipsets and access point
products for high-density wireless networks, is pleased to announce the
closing of the second tranche of the Company’s private placement,
previously announced on July 25, 2018. The first tranche closing was
announced on August 21, 2018.
Pursuant to the first tranche closing, the Company issued 10,726,106
units and pursuant to the second tranche closing, the Company issued
812,500 units for an aggregate of 11,538,606 units (the “Units”)
at a price of $0.16 per Unit to raise aggregate gross proceeds of
$1,846,177. Each Unit consists of one common share of the Company and
one non-transferable warrant which entitles the holder to purchase one
additional common share of the Company, for a period of 60 months from
closing, at an exercise price of $0.24 per share. The warrant will be
eligible for accelerated conversion at the option of the Company when
the Company’s shares have traded above $0.45 per share for ten (10)
consecutive trading days. This provision will only become effective
beginning 12 months after closing the private placement.
Three members of the board of directors participated in the financing.
The participation of these directors is considered to be a related party
transaction pursuant to Multilateral Instrument 61-101 – Protection
of Minority Security Holders in Special Transaction (“MI 61-101”).
The Company determined that exemptions from the formal valuation and
minority shareholder approval requirements of MI 61-101 were available
for the related party transaction pursuant to Section 5.5(a) and Section
5.7(1)(a) of MI 61-101 on the basis that the fair market value of the
transaction involving related parties was not more than 25 per cent of
the company’s market capitalization.
It is intended that the proceeds from the offering will be allocated as
follows: manufacturing and production to fulfill obligations with the
company’s customers and to scale for cable industry requirements with
customers like Mediacom Communications; focused engineering and product
development; and working capital and operating expenses.
There were no finder’s fees paid in connection with the second tranche
of the private placement. The securities issued pursuant to the second
tranche of the private placement will be subject to a statutory four
month hold period ending on January 5, 2019.
About Edgewater Wireless Systems Inc.:
Edgewater Wireless develops and commercializes leading edge technologies
and intellectual property for the communications market. Edgewater
Wireless delivers advanced product solutions designed to meet the
high-density, high quality of service (QoS) and high-reliability needs
of service providers and their customers. Leveraging over twenty-four
(24) patents, Edgewater’s WiFi3™ is redefining WiFi technology with its
wide-band, multi-channel radio and high-capacity Access Point solutions,
and delivering next generation WiFi, today.
The best solution for High-Density WiFi networks, Edgewater Wireless
WiFi3 powered access point products enable innovative service providers
to plan, build and deploy reliable, high-capacity services (like VoWiFI)
for high-density wireless data demand in any environment.
Do more with less! Fewer access points delivering high quality service
at a lower overall deployment cost make our patented WiFi3™ technology
the right choice for your next WiFi network.
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words “expect”, “anticipate”, “continue”,
“estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”,
“believe”, “plans”, “intends” and similar expressions are intended to
identify forward-looking information or statements. Although Edgewater
Wireless believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable,
undue reliance should not be placed on the forward-looking statements
and information because Edgewater Wireless can give no assurance that
they will prove to be correct. By its nature, such forward-looking
information is subject to various risks and uncertainties, which could
cause Edgewater Wireless’ actual results and experience to differ
materially from the anticipated results or expectations expressed. These
risks and uncertainties, include, but are not limited to access to
capital markets, market forces, competition from new and existing
companies and regulatory conditions. Readers are cautioned not to place
undue reliance on this forward-looking information, which is given as of
the date it is expressed in this news release or otherwise, and to not
use future-oriented information or financial outlooks for anything other
than their intended purpose. Edgewater Wireless undertakes no obligation
to update publicly or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Edgewater Wireless Systems Inc.
President and CEO