DragonWave Raises $23.75M

Source: Ottawa Business Journal
September 20, 2007 - Ottawa, Canada
 

Wireless Ethernet product maker DragonWave Inc. has successfully raised $23.75 million for its international sales efforts through its previously announced public offering.

The Ottawa-based company raised the funds from the issuance of 3.8 million common shares from treasury and the sale of 3.2 million common shares by certain selling shareholders, at $6.25 per share. The total gross proceeds from the offering were $43.75 million, with the usual 15-per-cent over-allotment option.

"We are extremely excited with the magnitude of investor interest in DragonWave which has enabled this successful offering," said DragonWave CEO Peter Allen in a statement. "DragonWave targets the global wireless communications service provider market and our products provide a solution to the current bottleneck for transmission of voice, video and other data that affects the efficiency of the backhaul portion of the telecommunications network."

The net proceeds from the treasury offering will mainly be used to increase DragonWave's sales penetration in regions outside of North America, as well to fund development of its next-generation wireless Ethernet products and improve its existing product line. The company also said it was looking into using the money to finance acquisitions.

The offering was led by Canaccord Capital Corp. and included CIBC World Markets Inc., Genuity Capital Markets G.P., Orion Securities Inc. and Raymond James Ltd.