Edgewater Wireless Completes Private Placement Successfully
Edgewater Wireless Systems Inc. (TSX-V: YFI) (OTC: KPIFF), often referred to as Edgewater Wireless, has recently announced the successful closing of its non-brokered private placement. This initiative is a significant step for the company as it strives to improve its operations and expand its product reach.
Under this private placement, Edgewater Wireless issued a total of 38,300,000 units, priced at $0.05 each, which resulted in gross proceeds amounting to $1,915,000. This funding will be instrumental in the company's efforts towards product commercialization as well as bolstering its general working capital.
Each unit issued during this placement comprises one common share in Edgewater Wireless and one purchase warrant. The purchase warrant allows the holder the option to buy an additional common share, valid for a period of two years following the issuance. The exercise price for these warrants is set at $0.08, which indicates a strategic move aimed at encouraging existing investors to maintain their interest in the company.
Fund Allocation and Future Outlook
The net proceeds from this private placement are earmarked primarily for advancing the commercialization of Edgewater Wireless's innovative products. The company is also prepared to adapt and reallocate these funds if necessary, depending upon the ongoing development and needs of its business operations.
Additionally, as part of the closing procedure for the private placement, Edgewater Wireless has distributed $17,150 in cash finder’s fees and has issued 1,533,000 common shares alongside 2,314,000 finder’s warrants to various finders. The finder’s warrants will similarly allow for the purchase of additional common shares at an exercise price of $0.08, fostering further investment opportunities.
Regulatory Compliance and Safety Measures
All securities issued in connection with the private placement are subjected to a statutory hold period of four months, adhering to the regulations established by applicable securities legislation and the policies of the TSX Venture Exchange. This procedural step is crucial in maintaining transparency and compliance in the financial framework within which Edgewater Wireless operates.
It is noteworthy that the securities involved in the private placement have not been registered under the U.S. Securities Act of 1933, and therefore, they cannot be offered or sold in the United States unless proper registration occurs or specific exemptions are applied.
Participation of Related Parties
Further, the company discloses that select directors and officers engaged in the private placement, contributing aggregate proceeds totaling $150,000. This involvement qualifies as a related party transaction under the Multilateral Instrument 61-101, which aims to safeguard minority security holders in special transactions.
To ensure compliance with MI 61-101, Edgewater Wireless is relying on exemptions from formal valuation and minority shareholder approval requirements, as the value attributed to the participation of these related parties does not exceed 25% of the company's market capitalization.
About Edgewater Wireless
Edgewater Wireless is at the forefront of enhancing Wi-Fi technologies. Their focus on innovation is encapsulated by their Spectrum Slicing technology, designed specifically for both residential and commercial markets. They create advanced Wi-Fi solutions, including silicon solutions and access points, that are tailored to meet the growing demands of service providers and their users.
The company holds 26 granted patents, underscoring its commitment to revolutionizing Wi-Fi technology through its In-band Multi-Channel Wi-Fi capabilities, providing exceptional service and connectivity.
By leveraging Spectrum Slicing technology, Edgewater Wireless allows multiple radios to function efficiently within the same frequency band. This approach is likened to transforming a single-lane road into a multi-lane highway, which in turn, enhances data performance dramatically. Notably, their recent Proof of Concept with a leading Tier 1 Service Provider revealed performance increases of 7 to 18 times, particularly benefiting homes with a higher number of connected devices.
For those interested in learning more about their innovative offerings and industry advancements, further information is available through their official website.
Frequently Asked Questions
What was the total amount raised through the private placement?
The total amount raised was $1,915,000 through the issuance of 38,300,000 units at a price of $0.05 each.
What does each unit in the private placement consist of?
Each unit consists of one common share and one common share purchase warrant, which is exercisable at an exercise price of $0.08.
How will Edgewater Wireless use the proceeds from the placement?
The proceeds will be used primarily for product commercialization and general working capital, with flexibility to reallocate as business needs evolve.
Are there any restrictions on the securities issued?
Yes, all securities are subject to a statutory hold period of four months from the issuance date.
Did any company directors participate in the private placement?
Yes, certain directors and officers participated, contributing $150,000 in total, which is considered a related party transaction.
