DragonWave to Raise up to $50.3M

Source: Ottawa Business Journal
September 07, 2007 - Ottawa, Canada

DragonWave Inc. is planning to raise up to $50.3 million to fund its sales efforts outside of North America and its wireless Ethernet product development.

The Ottawa-based company said it will be offering 3.8 million common shares issued from treasury and 3.2 common shares to be sold by certain selling shareholders at $6.25 each for aggregate gross proceeds of $43.8 million, with the usual 15-per-cent over-allotment option.

DragonWave said that the net proceeds of the overnight-marketed public offering would be used for product development, sales and marketing drives, and also "to provide an available source of funding for potential future acquisition opportunities."

The funding round is being led by Canaccord Capital Corp. and includes CIBC World Markets Inc., Genuity Capital Markets G.P., Orion Securities Inc. and Raymond James Ltd.

The offering is expected to close on or about Sept. 20.